{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2007-h2008","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"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.","Report year covers fiscal year.","Has supplements: White County Board of Education, Cleveland, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (White County Board of Education, Ga), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (White County Board of Education, Ga.), fiscal year ended June 30, 2008-","Fiscal year ended June 30, 2000, released in 2001; title from cover.","Fiscal year ended June 30, 2008, released in 2009."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","White County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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":null,"fulltext":"WHITE COUNTY BOARD OF EDUCATION \nCLEVELAND, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERALFUND \n \n25 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the White County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \n \n2008ARL-11 \n \n In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education, as of June 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated April 28, 2009, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing 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 considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through vii and page 25 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the White County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n~io.c::8~ Russell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2008ARL-11 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nINTRODUCTION \nOur discussion and analysis of the White County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2008. 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 basic financial statements and the notes to these statements to enhance their understanding of the School District's financial performance. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2008 are as follows: \n On the District-wide financial statements, the assets of the School District exceeded liabilities by $42.8 million. Of this amount, $1.1 million is unrestricted and is available for spending at the School District's discretion. \n The School District had $39.9 million in expenses relating to governmental activities; only $25.8 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $19.5 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $19.5 million or 43% of all revenues totaling $45.3 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \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. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the White County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \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. \nDistrict-Wide Statements \nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provide 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. \nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \nThe Statement of Net Assets and the Statement of Activities reflect the School District's governmental activities. \nFund Financial Statements \nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \nGovernmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. \n11 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nFiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as scholarship funds, 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. \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \n \nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for this fiscal year. Net asset comparisons to fiscal year 2007 are available and have been included in the following analysis. \n \nTable 1 Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2008 \n \nYear 2007 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$12,054,646.44 $12,564,705.75 50,847,347.44 45,834,894.46 \n \nTotal Assets \n \n$62,901,993.88 $58,399,600.21 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 4,099,309.40 $ 4,967,800.36 16,000,000.00 16,015,000.00 \n \nTotal Liabilities \n \n$20,099,309.40 $20,982,800.36 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$36,055,060.67 5,644,497.81 1,103,126.00 \n \n$32,172,654.27 4,483,128.10 761,017.48 \n \nTotal Net Assets \n \n$42.802.684.48 $37,416,799.85 \n \nTable 2 shows the Changes in Net Assets for this fiscal year. Revenue and Expense comparisons to fiscal year 2008 are available and are included in the following analysis. \n \nlll \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nTable 2 Change in Net Assets \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2008 \n \nYear 2007 \n \n$ 1,060,925.57 22,033,212.74 2,707,203.00 \n \n$ 1,058,029.68 20,439,336.14 \n165,935.00 \n \nTotal Program Revenues \n \n$25,801,341.31 $21,663,300.82 \n \nGeneral Revenues: \n \nTaxes \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$14,002,538.97 \n \nFor Debt Service \n \n355,156.34 \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Debt Service \n \nFor Capital Projects \n \n3,292,695.55 \n \nOther Sales Tax \n \n414,542.00 \n \nGrants and Contributions not Restricted to \n \nSpecific Programs \n \n20,669.67 \n \nInvestment Earnings \n \n388,894.07 \n \nMiscellaneous \n \n1,068,271.98 \n \n$11,928,332.09 334,831.32 \n1,905,038.82 1,386,663.02 \n352,142.54 \n759,020.23 1,274,751.28 \n \nTotal General Revenues \n \n$19,542,768.58 $17,940,779.30 \n \nTotal Revenues \n \n$45,344,109.89 $39,604,080.12 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation ofPlant 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 \n \n$26,205,697.31 \n1,278,030.62 666,996.86 799,234.07 851,491.59 \n2,298,601.37 268,880.45 \n2,215,673.37 2,026,472.68 \n225,140.38 246,313.42 \n277,454.02 1,991,374.79 \n606,864.33 \n \n$25,772,070.60 \n1,233,361.88 658,722.75 807,188.68 764,991.57 \n2,097,569.20 217,245.56 \n2,256,437.53 1,699,463.38 \n111,622.73 196,129.80 \n298,480.08 1,859,161.16 \n542,954.35 \n \nTotal Expenses \n \n$39,958,225.26 $38,515,399.27 \n \nIncrease in Net Assets \n \n$ 5,385,884.63 $ 1,088,680.85 \n \nIV \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \n \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. Cost of service comparisons to fiscal year 2008 are available and have been included in the following analysis. \n \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear2008 \n \nYear2007 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear2008 \n \nYear2007 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations ofNon-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$26,205,697.31 $25,772,070.60 $ 8,541,859.65 \n \n1,278,030.62 666,996.86 799,234.07 851,491.59 \n2,298,601.37 268,880.45 \n2,215,673.37 2,026,472.68 \n225,140.38 246,313.42 \n \n1,233,361.88 658,722.75 807,188.68 764,991.57 \n2,097,569.20 217,245.56 \n2,256,437.53 1,699,463.38 \n111,622.73 196,129.80 \n \n379,427.08 293,288.92 179,851.19 356,351.91 1,183,560.48 187,006.99 772,515.84 1,260,051.13 146,253.17 205,770.99 \n \n277,454.02 1,991,374.79 \n606,864.33 \n \n298,480.08 1,859,161.16 \n542,954.35 \n \n149,298.45 -105,216.18 606,864.33 \n \n$10,920,545.57 \n535,671.43 333,707.31 335,174.08 479,882.75 1,265,164.67 142,911.46 1,089,477.62 887,048.58 \n73,841.24 162,647.96 \n121,479.46 -38,408.03 542,954.35 \n \nTotal Expenses \n \n$32 258 225 26 $38 515 322 27 $]4,156,883.25 $16,852,028.45 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \n \nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $49.9 million and total expenditures and other financing uses of$49.3 million. \n \nGENERAL FUND BUDGETING HIGHLIGHTS \n \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. \n \nV \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nFor the General Fund, the final actual revenues and other financing sources of $39.3 million exceeded the original budgeted amounts of $37.9 million by $1.4 million. The significant change (final actual vs. original budget) was the State accounts receivable for State on Behalf payments of $0.88 million. The remainder is associated with program increases of $0.49 and the mid term adjustment of $0.18. \n \nThe actual revenues and other financing sources of $39.27 million exceeded the final budgeted amounts of $39.24 million by $0.03 million. The difference is the mid-term adjustment. \n \nThe final actual expenditures and other financing uses of $38.16 million were $0.2 million more than the original budgeted amount of $37.96 million. The expenditures for the program increases accounts for this difference. \n \nThe final actual expenditures and other financing uses of $38.16 million were $0.99 million less than the final budgeted amount of $39.15 million for budgeted programs not being spent. \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets \n \nAt fiscal year ended June 30, 2008 the School District had $50.85 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category and accumulated depreciation. Capital assets comparisons to fiscal year 2007 are available and have been included in the following analysis. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2008 \n \nYear 2007 \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \n \n$ 2,021,886.00 25,261.12 \n44,859,156.16 2,937,014.62 1,004,029.54 \n \n$ 2,021,886.00 6,278,795.30 \n33,883,974.16 3,016,861.06 633,377.94 \n \nTotal \n \n$50.847.347.44 $45.834.894.46 \n \nDue to the ongoing growth in the county, the School District has construction projects including new buildings, additions and renovations. \n \nvi \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nDebt \n \nAt fiscal year ended June 30, 2008, the School District had $16.0 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2008 \n \nYear 2007 \n \nBonds Payable \n \n$16.000.000.00 $16,015,000.00 \n \nCURRENT ISSUES \n \nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \n \n Economic Slowdown - State funding for education has been stagnant and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite these challenges, the White County 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. \n \n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \n \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \n \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 Mr. Tom McLean, Finance Director at White County School District, 113 North Brooks Street, Cleveland, GA 30528. Mailing address is same as above. You may also email your question to Mr. McLean at tmc1ean@white.kl2.ga.us. \n \nVll \n \n WHITE COUNTY BOARD OF EDUCATION \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS \nJUNE 30, 2008 \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n8,226, 180.26 \n \n887,103.06 2,511,150.73 \n367,089.43 8,901.24 \n54,221.72 2,047,147.12 48,800,200.32 \n \n$ =====6=2,=90=1=,9=9=3.=88.., \n \n$ \n \n6,791.17 \n \n4,092,518.23 \n \n2,835,000.00 13,165,000.00 \n \n$ \n \n20 I099I 309.40 \n \n$ 36,055,060.67 \n716,916.97 965,065.38 3,962,515.46 1,103,126.00 \n$ 42,802,684.48 \n \n$ =====6=2'=90=1=,9=9=3=88= \n \nThe notes to the basic financial statements are an integral part of this statement. \n-1- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 26,205,697.31 $ \n1,278,030.62 666,996.86 799,234.07 851,491.59 \n2,298,601.37 268,880.45 \n2,215,673.37 2,026,472.68 \n225,140.38 246,313.42 \n277,454.02 1,991,374.79 \n606,864.33 \n$ 39,958,225.26 $ \n \n69,564.24 \n25,000.00 115,989.35 850,371.98 1,060,925.57 \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 15,249,360.15 $ \n789,012.34 373,707.94 603,254.63 491,723.05 1,101,829.60 \n81,873.46 1,416,798.86 \n658,931.55 78,887.21 40,542.43 \n2,495.80 1,144,795.72 \n$ 22,033,212.74 $ \n \n2,344,913.27 $ 109,591.20 16,128.25 3,416.63 13,211.29 1,358.67 107,490.00 \n9,670.42 101,423.27 \n2,707,203.00 $ \n \n-8,541,859.65 \n-379,427.08 -293,288.92 -179,851.19 -356,351.91 -1, 183,560.48 -187,006.99 -772,515.84 -1,260,051.13 -146,253.17 -205, 770.99 \n-149,298.45 105,216.18 -606,864.33 \n-14, 156,883.95 \n \n$ \n \n14,002,538.97 \n \n355,156.34 \n \n3,292,695.55 414,542.00 20,669.67 388,894.07 \n1,068,271.98 \n \n$ \n \n19,542,768.58 \n \n$ \n \n5,385,884.63 \n \n37,416,799.85 \n \n$ ==4=2=,8=0=2=,6=8=4.=4=8 \n \n- 3- \n \n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2008 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,501,028.80 $ 3,766,186.08 $ 958,965.38 $ 8,226,180.26 \n \n364,300.00 2,511,150.73 \n367,089.43 8,901.24 \n54,221.72 \n \n532,000.00 \n \n6,100.00 \n \n902,400.00 2,511,150.73 \n367,089.43 8,901.24 \n54,221.72 \n \n$ 6,806,691.92 $ 4,298,186.08 $ 965,065.38 $ 12,069,943.38 \n \n$ \n \n6,791.17 \n \n4,092,518.23 \n \n$ 4,099,309.40 \n \n$ \n \n6,791.17 \n \n4,092,518.23 \n \n$ 4,099,309.40 \n \n$ 716,916.97 \n \n$ 716,916.97 \n \n$ 965,065.38 \n \n965,065.38 \n \n$ 3,962,515.46 \n \n3,962,515.46 \n \n365,297.85 \n \n365,297.85 \n \n1,625,167.70 \n \n335,670.62 \n \n1,625,167.70 335,670.62 \n \n$ 2,707,382.52 $ 4,298,186.08 $ 965,065.38 $ 7,970,633.98 \n \n$ 6,806,691.92 $ 4,298,186.08 $ 965,065.38 $ 12,069,943.38 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \n \n$ 7,970,633.98 \n \n$ 2,021,886.00 25,261.12 \n2,594,372.70 50,583,402.13 \n6,018,023.64 -10,395,598.15 \n \n50,847,347.44 \n \n-15,296.94 \n \n-16,000,000.00 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 42,802,684.48 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nIssuance of Bonds Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 14,207,784.36 414,542.00 $ \n19,014,465.66 3,146,906.75 1,060,925.57 168,893.35 1,055,140.42 \n \n$ 3,292,695.55 2,599,713.00 \n150,776.83 1,853.00 \n \n$ 39,068,658.11 $ 6,045,038.38 $ \n \n358,375.73 $ 14,566,160.09 \n \n3,707,237.55 \n \n21,614,178.66 \n \n3,146,906.75 \n \n1,060,925.57 \n \n69,223.89 \n \n388,894.07 \n \n10,078.55 \n \n1,067,071.97 \n \n437,678.17 $ 45,551,374.66 \n \n$ 25,387,355.81 $ 778,073.79 \n \n$ 26,165,429.60 \n \n1,192,653.85 666,996.86 785,897.82 789,086.53 \n2,301,066.22 227,753.08 \n2,267,890.11 1,824,718.22 \n226,370.57 246,313.42 269,920.30 1,974,608.05 \n \n1,053.53 59,743.35 41,127.37 \n5,321,985.02 \n \n1,192,653.85 666,996.86 786,951.35 848,829.88 \n2,301,066.22 268,880.45 \n2,267,890.11 1,824,718.22 \n226,370.57 246,313.42 269,920.30 1,974,608.05 5,321,985.02 \n \n$ 2,515,000.00 \n \n500.00 \n \n370,588.50 \n \n235,775.83 \n \n2,515,000.00 500.00 \n606,364.33 \n \n$ 38,160,630.84 $ 6,572,571.56 $ 2,751,275.83 $ 47,484,478.23 \n \n$ 908,027.27 $ -527,533.18 $ -2,313,597.66 $ -1,933,103.57 \n \n$ 2,500,000.00 \n \n$ 2,500,000.00 \n \n$ 200,000.00 \n \n$ 1,659,248.48 \n \n1,859,248.48 \n \n-1,859,248.48 \n \n-1,859,248.48 \n \n$ 200,000.00 $ 640,751.52 $ 1,659,248.48 $ 2,500,000.00 \n \n$ 1,108,027.27 $ 113,218.34 $ -654,349.18 $ 566,896.43 \n \n1,599,355.25 4,184,967.74 \n \n1,619,414.56 \n \n7,403,737.55 \n \nFund Balances - Ending \n \n$ 2,707,382.52 $ 4,298,186.08 $ 965,065.38 $ 7,970,633.98 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds {Exhibit \"E\") \n \n$ 566,896.43 \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \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: \n \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \n \n$ 5,752,831.91 -1,092, 127.21 \n \n4,660,704.70 \n \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. \n \n-208,464.78 \n \nIn the Statement of Activities, only the gain on the sale of the building, land improvements and 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 building, land improvements and equipment sold. \n \n351,748.28 \n \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: \n \nGeneral Obligation Bonds Issued \n \n-2,500,000.00 \n \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: \n \nBond Principal Retirements \n \n2,515,000.00 \n \nChange in Net Assets of Governmental Activities {Exhibit \"B\") \n \n$ 5,385,884.63 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2008 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments \nTotal Assets \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ 16,794.88 $ 128,587.12 29,044.45 \n \n$ 45,839.33 $ 128,587.12 \n \n$ 128,587.12 $ 45,839.33 $ 45,839.33 $ 128,587.12 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Other Deductions Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n3,378.25 \n \n$ \n \n2,400.00 \n \n$ \n \n978.25 \n \n44,861.08 \n \n$ 45,839.33 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe White County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 10 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \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. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be \n- 11 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \navailable 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 are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both \nrestricted and unrestricted net assets available to finance the program. It is the School District's \npolicy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n- 12 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe White County Board ofCommissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on July 27, 2007 (levy date). Taxes were due on December 20, 2007 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax digest are reported as revenue in the governmental funds for fiscal year 2008. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $14,207,784.36 and for school bonds amounted to $358,375.73. \n \nTax millage rates levied for the 2007 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.90 mills ~mills \n \n14.24 mills \n \n- 13 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,292,695.55 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the 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. \n \nCAPITAL ASSETS \n \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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount $5,000.00 or more $5,000.00 or more $5,000.00 or more \n \nNIA 20 years up to 80 years 5 to 20 years \n \n- 14 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. \nIn the District-wide and fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, bond premiums and discounts, as well as issuance costs, should be deferred and amortized over the life ofthe bonds using the straight-line method. The effect ofthis deviation is deemed to be immaterial to the fair presentation of the basic financial statements. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \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. \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. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \n- 15 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $8,921,508.25. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \n- 16 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS \n \nCategory 3 - Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \n \nCustodial Credit Risk Category \n1 2 3 \n \nBank Balance \n \n$ \n \n0.00 \n \n0.00 \n \n7,819,472.84 \n \nTotal \n \n$ 7,819,472.84 \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2007 \n \nIncreases \n \nBalances Decreases June 30, 2008 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,021,886.00 $ 6,278,795.30 \n \n0.00 \n \n$ 2,021,886.00 \n \n$ 6,253,534.18 \n \n25,261.12 \n \nTotal Capital Assets Not Being Depreciated $ 8,300,681.30 $_ _~0~.0=0 $6,253,534.18 $ 2,047,147.12 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$38,955,471.00 $11,627,931.52 $ \n \n0.39 $50,583,402.13 \n \n6,070,331.00 378,434.57 430,741.93 6,018,023.64 \n \n2,594,373.00 \n \n0.30 2,594,372.70 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n5,071,496.84 3,053,469.94 1,960,995.06 \n \n558,601.67 403,806.96 129,718.58 \n \n-94,147.46 376,267.88 500,370.48 \n \n5,724,245.97 3,081,009.02 1,590,343.16 \n \nTotal Capital Assets, Being Depreciated, Net $37,534,213.16 $10,914,238.88 $ -351,748.28 $48,800,200.32 \n \nGovernmental Activity Capital Assets - Net $45.834.894.46 $10.914.238.88 $ 5.901.785.90 $50.847.347.44 \n \n- 17 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Enterprise Operations Food Services \n \n$ 787,808.91 \n \n$ 46,038.75 6,775.40 1,435.31 5,550.00 570.77 \n197,278.13 \n \n257,648.36 4,062.50 \n42,607.44 \n \n$ 1,092,127.21 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) 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: \n \nDistrict-wide Capital Projects SPLOST \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \n \n$ 958,965.38 $ 3,430,515.46 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2008, consisted of the following: \n \n- 18 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 7: INTERFUND TRANSFERS \n \nTransfer to \n \nTransfers From District-wide \nCapital Projects \n \nGeneral Fund Debt Service Fund \n \n$ 200,000.00 1,659,248.48 \n \nTotal \n \n$ 1,859,248.48 \n \nTransfers are used (1) to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the District-wide Capital Projects Fund as well as capitalized interest to the Debt Service Fund for current year bond principal and interest payments and (2) to transfer local construction funds to the General Fund to fund two teachers at the middle school. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n- 19 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 8: RISK MANAGEMENT \n \n2007 2008 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEndofYear Liability \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n568.00 $ \n \n568.00 $ \n \n0.00 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of$400,000.00 loss per occurrence, up to $1,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees Superintendent \n \n$ 100,000.00 $ 50,000.00 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTemporary Loans \n \n$====0~.0-0 $3,315.ooo.oo $3,315.ooo.oo $====o==.o=o \n \nNote 10: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \n-20- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 10: LONG-TERM DEBT \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Refunding - Series 2003 General Government - Series 2006 General Government - Series 2007 \n \n2.90% 3.60% - 3.73% \n3.846% \n \n$ 3,500,000.00 10,000,000.00 2,500,000.00 \n \n$16,000,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \n \nG.O. Bonds \n \nBalance \nJuly 1. 2007 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30. 2008 \n \nDue Within One Year \n \n$)6 0)5 000 00 $ 2.500.000 00 $ 2.515.000,00 $16.000.000,00 $ 2.835 000 00 \n \nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2009 2010 2011 2012 2013 2014 \n \n$ 2,835,000.00 $ 560,481.00 \n \n2,955,000.00 \n \n460,708.80 \n \n3,070,000.00 \n \n354,372.60 \n \n3,190,000.00 \n \n243,836.60 \n \n3,320,000.00 \n \n128,847.60 \n \n630,000.00 \n \n9,135.00 \n \nTotal Principal and Interest \n \n$16.000,000.00 $ 1,757,381.60 \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $883,995.52 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$857,944.19 \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 11: ON-BEHALF PAYMENTS \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $22,091.33 \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 $3,960.00 \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNote 13: POSTEMPLOYMENT BENEFITS \nGeorgia Retiree Health Benefit Fund \nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code of Georgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. \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%) ofthe cost of health insurance coverage. \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 \n- 22 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 13: POSTEMPLOYMENT BENEFITS \n \npay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \n \nTeachers Non-Certificated Employees \n \n18.534% of state-based salaries $162.72 per month \n \nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $3,266,232.60, which equaled the required contribution. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 1,927,346.12 $ 1,824,388.65 $ 1,652,852.00 \n \n- 23 - \n \n (This page left intentionally blank) \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers from Other Funds Other Sources Operating Transfers to Other Funds Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Adjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ 14,196,370.00 $ 14,196,370.00 $ 14,207,784.36 \n \n414,542.00 \n \n17,441,163.00 \n \n18,634,517.52 \n \n19,014,465.66 \n \n3,427,604.00 \n \n3,595,913.00 \n \n3,146,906.75 \n \n1,091,610.00 \n \n1,091,610.00 \n \n1,060,925.57 \n \n112,960.00 \n \n112,990.00 \n \n168,893.35 \n \n1,250,580.00 \n \n1,266,880.00 \n \n1,055,140.42 \n \n$ 37,520,287.00 $ 38,898,280.52 $ 39,068,658.11 \n \n$ 25,196,238.77 $ 25,794,765.27 $ 25,387,355.81 \n \n1,244,861.00 729,857.84 798,784.00 811,821.59 \n2,193,507.00 240,770.00 \n2,287,612.00 1,605,727.00 \n210,035.00 202,897.80 1,966,200.00 323,700.00 \n \n1,375,587.79 762,576.23 813,126.97 857,386.39 \n2,395,922.08 256,510.62 \n2,309,432.56 1,694,848.79 \n237,487.06 213,888.76 1,966,200.00 329,200.00 \n \n1, 192,653.85 666,996.86 785,897.82 789,086.53 \n2,301,066.22 227,753.08 \n2,267,890.11 1,824,718.22 \n226,370.57 246,313.42 1,974,608.05 269,920.30 \n \n$ 37,812,012.00 $ 39,006,932.52 $ 38,160,630.84 \n \n$ \n \n-291, 725.00 $ \n \n-108,652.00 $ \n \n908,027.27 \n \n$ \n \n346,965.00 $ \n \n346,325.00 $ \n \n1,530.00 \n \n-146,965.00 \n \n-146,325.00 \n \n-1 550.00 \n \n200,000.00 \n \n$ \n \n200,000.00 $ \n \n199,980.00 $ \n \n200,000.00 \n \n$ \n \n-91,725.00 $ \n \n91,328.00 $ 1,108,027.27 \n \n1,593,864.57 \n \n1,599,355.25 \n \n1,599,355.25 \n \n31,586.75 \n \n26,003.21 \n \nFund Balances - Ending \n \n$ 1,533,726.32 $ 1,716,686.46 $ 2,707,382.52 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. \n- 25- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \nTotal U. S. Department of Agriculture \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \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 Migrant Education State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \nTotal U. S. Department of Education \nHealth and Human Services, U.S. Department of Pass-Through From Ninth District Opportunity, Incorporated Head Start \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nTotal Federal Financial Assistance \nNIA = Not Available \n \n- 26- \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n. 10.553 . 10.555 \n \nNIA \n \n(2) \n \nN/A $ 2,692,932.96 \n \n$ 2,692,932.96 \n \n10.550 10.665 \n \nNIA \n \n109,693.59 \n \nN/A \n \n(3) \n \n$ 2,802,626.55 \n \n94.004 \n \nN/A \n \n$ \n \n12,882.94 \n \n. 84.027 . 84.173 \n \nN/A \n \n$ \n \nN/A \n \n$ \n \n630,837.26 22,266.38 \n653,103.64 \n \n84.048 84.365 84.367 84.011 84.298 84.010 84.287 \n \nN/A \n \n35,426.00 \n \nN/A \n \n1,707.38 \n \nN/A \n \n139,168.05 \n \nN/A \n \n11,090.89 \n \nN/A \n \n6,999.12 \n \nN/A \n \n724,824.55 \n \nN/A \n \n379,453.01 \n \n$ 1,951,772.64 \n \n93.600 \n \nN/A $ \n \n65,110.84 \n \n$ \n \n56,457.60 \n \n$ 4,888,850.57 \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($227,676.01) were not maintained separately and are included in the 2008 National School Lunch Program. \n(3) Funds earned on this program in the amount of $20,669.67 do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \n \n$ 249,556.50 \n \n$ 249,556.50 \n \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 English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Food Services Vocational Education Amended Formula Adjustment Other State Programs Graduation Coaches Health Insurance Middle School Remediation and Intervention Grant National Teacher Certification Preschool Handicapped Program Teachers' Retirement \n \n1,194,649.00 112,500.00 \n2,815,668.00 148,085.00 \n1,308,848.00 162,199.00 \n2,417,735.00 1,720,953.00 \n811,541.00 \n209,940.00 119,955.00 1,426,582.00 452,315.00 273,014.00 486,808.00 \n81,857.00 180,559.00 \n51,557.00 392,043.00 121,436.00 \n71,493.00 \n518,158.00 807,241.00 922,243.00 \n543,953.00 107,490.00 20,000.00 \n82,671.00 102,236.00 128,357.26 -349,202.00 \n156,900.00 857,944.19 \n2,976.00 41,161.00 53,409.58 22,091.33 \n \n1,194,649.00 112,500.00 \n2,815,668.00 148,085.00 \n1,308,848.00 162,199.00 \n2,417,735.00 1,720,953.00 \n811,541.00 \n209,940.00 119,955.00 1,426,582.00 452,315.00 273,014.00 486,808.00 81,857.00 180,559.00 51,557.00 392,043.00 121,436.00 71,493.00 \n518,158.00 807,241.00 922,243.00 \n543,953.00 107,490.00 20,000.00 \n82,671.00 102,236.00 128,357.26 -349,202.00 \n156,900.00 857,944.19 \n2,976.00 41,161.00 53,409.58 22,091.33 \n \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \n \n$ 2,599,713.00 \n \n2,599,713.00 \n \nGovernor's Office of Highway Safety Driver's Education Improvement Project \n \n108,210.68 \n \n108,210.68 \n \n- 28- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Office of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACT Human Resources, Georgia Department of Family Connection \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n3,960.00 \n \n$ \n \n3,960.00 \n \n75,372.12 \n \n75,372.12 \n \n$ 19,014,465.66 $ 2,599,713.00 $ 21,614,178.66 \n \nSee notes to the basic financial statements. \n \n- 29- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3)(4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nAcquisition, construction and equipping one new elementary school; adding to, renovating, repairing, improving and equipping existing school buildings; acquiring computers and computer technology equipment for the school system, and acquisition of land for additional schools \n \n$ 16,750,000.00 $ 20,663,324.00 $ 80,797.50 $ 11,641,791.00 Ongoing \n \nPaying a portion of the principal and interest due on the White County School District's Series 1993 General Obligation Bonds from August 1, 2003 through and including February 1, 2008 \n \n2,250,000.00 \n \n2,112,766.00 \n \n629,040.00 \n \n1,483,726.00 Completed \n \nAcquiring, constructing and equipping one new elementary school; acquiring, constructing and equipping a new gymnasium at the existing middle school; acquiring computers and computer technology equipment; acquiring, constructing and equipping a new agriculture exhibition facility; adding to, constructing, renovating, repairing, improving, and equipping school system buildings and facilities; including but not limited to athletic and fine arts facilities and security improvements and equipment; acquiring heating, air conditioning and energy efficiency equipment; acquiring textbooks and other instructional materials and transportation equipment; paying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds from August 1, 2008 through and including February 1, 2013 (the maximum amount of such payments not to exceed $1,600,000.00) and paying any general obligation debt of the School District in conjunction with the imposition of such sales and use tax \n \n19,000,000.00 \n \n19,000,000.00 6,326,633.36 \n \n8,250,568.00 Ongoing \n \n$ 381000,000.00 $ 41 ?76,090.00 $ 7,036,470.86 $ 21,376,085.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n(4) During fiscal year 2003, the White County Board of Education issued General Obligation Refunding Bond Issue 2003 to refund portions of the 1993 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n-30- \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n1,484,771.00 $ \n138,098.00 3,476,567.00 \n195,923.00 1,615,810.00 \n \n1,562,123.52 $ \n91,770.34 3,880,008.45 \n236,347.23 1,986,330.49 \n \n214,357.00 2,979,602.00 2,116,956.00 \n999,552.00 3,017,580.00 \n607,220.00 101,234.00 222,522.00 \n65 218.00 \n \n318,645.21 3,431,056.05 3,134,143.02 \n930,281.87 \n185,208.87 466,947.56 2,244,611.20 393,015.18 517,992.94 \n91,955.58 160,100.95 152,470.81 \n \n23,684.91 $ \n2,261.82 81,095.11 \n6,703.98 51,837.78 \n162,543.66 115,531.18 104,124.18 \n1,563.27 33,617.61 \n2,784.95 11,850.29 \n409.99 15,085.46 \n0.90 \n \n1,585,808.43 94,032.16 \n3,961,103.56 243,051.21 \n2,038,168.27 \n318,645.21 3,593,599.71 3,249,674.20 1,034,406.05 \n185,208.87 468,510.83 2,278,228.81 395,800.13 529,843.23 \n92,365.57 175,186.41 152 471.71 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n17,235,410.00 $ 19,783,009.27 $ 613,095.09 $ 20,396,104.36 \n \nMedia Center Program Staff and Professional Development \n \n484,790.00 89,332.00 \n \n565,522.10 \n \n149,996.54 \n \n715,518.64 80,356.42 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n17,809,532.00 $ 20,348,531.37 $ 763,091.63 $ 21,191,979.42 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2008, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated April 28, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency. \n2008YB-41 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the White County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the White County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the White County Board of Education's internal control. We consider item FS-7541-08-01 in the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the White County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we consider item FS-7541-08-0 I to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management ofWhite County Board ofEducation in a separate letter dated April 28, 2009. \nWhite County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit White County Board of Education's response and, accordingly, we express no opinion on it. \n2008YB-41 \n \n This report is intended solely for the information and use of management, members of the White County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \n \nRWH:gp 2008YB-41 \n \nRespectfully submitted, \n~-m w;4J-~ \nRussell W. Hinton, CPA, CGFM State Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWhite County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2008. White County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States 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 White County Board ofEducation'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 White County Board ofEducation's compliance with those requirements. \n2008SA-10 \n \n In our opinion, the White County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2008. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over compliance. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \nThis report is intended solely for the information and use of management, members of the White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~~n~~!t ~ State Auditor \nRWH:gp 2008SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-06-01 FS-7541-07-01 FS-7541-07-02 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-7541-07-02 \n \nWe concur with this finding. The Board of Education has hired a StaffAccountant that is a Certified Public Accountant who started in April 2008. Trish Harris is very knowledgeable in GASB Statement 34 reporting requirements. With the continued training from Financial Review and the Department of Audits, we do not foresee any problems preparing the GASB 34 Financial Statements. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was unqualified. \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the White County Board of Education disclosed a financial statement significant deficiency related to the following control category. \nFinancial Reporting \nThe significant deficiency described above is considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the White County Board of Education did not disclose any significant deficiencies in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The White County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The White County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7541-08-01 \n \nCondition: \n \nThis is a repeat finding (FS-7541-07-02) from fiscal year ended June 30, 2007. The School District did not have adequate controls in place to ensure that all required activity was included in the financial statement information presented for audit. \n \nCriteria: \n \nChapter 22 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration indicates that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \n \nQuestioned Cost: NIA \n \nInformation: \n \nSeveral entries were made to tie beginning net assets and beginning fund balance to the prior year report totals. \n \nOther audit entries were also made to correctly reflect the financial statements in accordance with Chapter 22 Annual Financial Reporting ofthe Financial Management for Georgia Local Units of Administration. \n \nCause: \n \nThe School District did not implement an adequate system ofinternal control over the financial reporting process. \n \nEffect: \n \nThe School District did not comply with the requirements of the Georgia Department ofEducation regarding financial reporting. Several adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should implement controls over the financial statement reporting process to ensure that all required activity is included in the financial statement information. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-2- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2008 \nFinding Control Number: FS-7541-08-01 \nWe concur with this finding. Tom McLean Financial Director and Trish Harris Staff Accountant will meet with Darlene McConnell DOAA for a training session scheduled for May 12, 2009 on how to make the adjusting entries to White County's financial statements. The goal of the session is to ensure that we have a complete understanding ofwhat is needed to complete all requirements for the financial statements. \nContact Person: Tom McLean Title: Finance Director Phone: (706) 865-2315 Fax: (706) 865-7784 E-mail: tmc1ean@white.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2006-h2007","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2007-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001; ceased with fiscal year ended June 30, 2008, released in 2009.","Report year covers fiscal year.","Has supplements: White County Board of Education, Cleveland, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (White County Board of Education, Ga), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (White County Board of Education, Ga.), fiscal year ended June 30, 2008-","Fiscal year ended June 30, 2000, released in 2001; title from cover.","Fiscal year ended June 30, 2008, released in 2009."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","White County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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":null,"fulltext":"WHITE COUNTY BOARD OF EDUCATION CLEVELAND, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n25 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 11, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe White County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \n \n2007ARL-11 \n \n In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated May 11, 2008, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing 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 considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through vii 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the White County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \nl0.~:s. \nRu sell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007ARL-11 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nINTRODUCTION \nOur discussion and analysis of the White County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2007. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2007 are as follows: \n On the District-wide financial statements, the assets of the School District exceeded liabilities by $37.41 million. Of this amount, $0.761 million is unrestricted and is available for spending at the School District's discretion. \n The School District had $38.5 million in expenses relating to governmental activities; only $21.7 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $17.9 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $17.9 million or 45% of all revenues totaling $39.6 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \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. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the White County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \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. \nDISTRICT-WIDE STATEMENTS \nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \nThe Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities. \nFUND FINANCIAL STATEMENTS \nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \nGovernmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. \n11 \n \n WIDTE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nFiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as scholarship funds, 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. \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \n \nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for this fiscal year. Net asset comparisons to fiscal year 2006 are available and have been included in the following analysis. \n \nTable 1 Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nYear 2006 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$12,564,705.75 $18,654,144.00 45,834,894.46 39,591,982.00 \n \nTotal Assets \n \n$58,399,600.21 $58,246,126.00 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 4,967,800.36 $ 3,483,007.00 16,015,000.00 18,435,000.00 \n \nTotal Liabilities \n \n$20,982,800.36 $21,918,007.00 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$32,172,654.27 4,483,128.10 761,017.48 \n \n$31,140,506.00 3,235,153.00 1,952,460.00 \n \nTotal Net Assets \n \n$37.416.799.85 $36.328.119.00 \n \nTable 2 shows the Changes in Net Assets for this fiscal year. Revenue and Expense comparisons to fiscal year 2007 are available and are included in the following analysis. \n \niii \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nTable 2 Change in Net Assets \n \nRevenues Program Revenues: Charges for Services and Sales \nOperating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nYear 2006 \n \n$ 1,058,029.68 20,439,336.14 165,935.00 \n \n$ 1,079,194.00 17,778,634.00 947,474.00 \n \nTotal Program Revenues \n \n$21,663,300.82 $19,805,302.00 \n \nGeneral Revenues: \n \nTaxes \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$11,928,332.09 \n \nFor Debt Service \n \n334,831.32 \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Debt Service \n \n1,905,038.82 \n \nFor Capital Projects \n \n1,386,663.02 \n \nIntangible Recording Tax \n \n352,142.54 \n \nReal Estate \n \nGrants and Contributions not Restricted to \n \nSpecific Programs \n \nInvestment Earnings \n \n759,020.23 \n \nMiscellaneous \n \n1,274,751.28 \n \nSpecial Item \n \nDonated Building \n \n$10,995,083.00 313,952.00 \n2,389,250.00 800,000.00 513,185.00 14,218.00 \n20,507.00 352,987.00 873,969.00 \n325,000.00 \n \nTotal General Revenues and Special Item \n \n$17,940,779.30 $16,598,151.00 \n \nTotal Revenues \n \n$39,604,080.12 $36,403,453.00 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration \nSchool 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 \n \n$25,772,070.60 \n1,233,361.88 658,722.75 807,188.68 764,991.57 \n2,097,569.20 217,245.56 \n2,256,437.53 1,699,463.38 \n111,622.73 196,129.80 \n298,480.08 1,859,161.16 \n542,954.35 \n \n$21,973,545.00 \n1,169,982.00 720,631.00 708,771.00 702,665.00 \n1,932,501.00 307,262.00 \n2,138,192.00 1,527,441.00 \n98,752.00 182,614.00 \n254,215.00 1,766,157.00 \n371,133.00 \n \nTotal Expenses \n \n$38,515,399.27 $33,853,861.00 \n \nIncrease in Net Assets \n \n$ 1,088,680.85 $ 2,542,522.00 \n \niv \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \n \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. Cost of service comparisons to fiscal year 2006 are available and have been included in the following analysis. \n \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nYear 2006 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nYear 2006 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$25,772,070.60 $21,973,545.00 \n \n1,233,361.88 658,722.75 807,188.68 764,991.57 \n2,097,569.20 217,245.56 \n2,256,437.53 1,699,463.38 \n111,622.73 196,129.80 \n \n1,169,982.00 720,631.00 708,771.00 702,665.00 \n1,932,501.00 307,262.00 \n2,138,192.00 1,527,441.00 \n98,752.00 182,614.00 \n \n298,480.08 1,859,161.16 \n542,954.35 \n \n254,215.00 1,766,157.00 \n371,133.00 \n \n$10,920,545.57 $ 8,098,825.00 \n \n535,671.43 333,707.31 335,174.08 479,882.75 1,265,164.67 142,911.46 1,089,477.62 887,048.58 \n73,841.24 162,647.96 \n \n510,772.00 405,834.00 328,367.00 482,383.00 1,313,213.00 255,145.00 1,235,856.00 875,678.00 \n71,543.00 156,691.00 \n \n121,479.46 -38,408.03 542,954.35 \n \n27,253.00 -84,134.00 371,133.00 \n \nTotal Expenses \n \n$38,515 322.21 $33,853,861.QQ $16,852,Q28 45 $14,048,552,QQ \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \n \nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $39.7 million and total expenditures of $47.2 million. \n \nGENERAL FUND BUDGETING HIGHLIGHTS \n \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. \n \nFor the General Fund, the final actual revenues and other financing sources of $35.5 million exceeded the original budgeted amounts of $34.3 million by $1.2 million. The significant change (final actual vs. original budget) was the State accounts receivable for State on Behalf payments of $0.77 million. The remainder is associated with salaries and benefits receivables. \n \nV \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nThe actual revenues of $35.5 million exceeded the final budgeted amounts of $34.0 million by $1.5 million. The difference is as stated above. \n \nThe final actual expenditures of $36.2 million were $0.6 million more than the original budgeted amount of $35.6 million. The State on Behalf payments was not budgeted and accounts for the majority of this difference. \n \nThe final actual expenditures of $36.2 million were $0.5 million more than the final budgeted amount of$35.7 million for the same reason as stated above. \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets \n \nAt fiscal year ended June 30, 2007 the School District had $45.83 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category and accumulated depreciation. Capital assets comparisons to fiscal year 2006 are available and have been included in the following analysis. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nYear 2006 \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \n \n$ 2,021,886.00 6,278,795.30 \n33,883,974.16 3,016,861.06 633,377.94 \n \n$ 2,021,886.00 191,295.00 \n34,168,041.00 2,386,797.00 \n823,963.00 \n \nTotal \n \n$45,834,894.46 $39.591.982.00 \n \nDue to the ongoing growth in the county, the School District has construction projects including new buildings, additions and renovations. \n \nDebt \n \nAt fiscal year ended June 30, 2007, the School District had $16.015 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \n \nVI \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nYear 2006 \n \nBonds Payable \n \n$16,015,000.00 $18,435,000.00 \n \nCURRENT ISSUES \n \nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \n \n Economic Slowdown - State funding for education has been stagnant and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite these challenges, the White County 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. \n \n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \n \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \n \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 Mr. Tom McLean, Finance Director at White County School District, 113 North Brooks Street, Cleveland, GA 30528. Mailing address is same as above. You may also email your question to Mr. McLean at tmclean@white.k12.ga.us. \n \nVll \n \n WHITE COUNTY BOARD OF EDUCATION \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nSalaries and Benefits Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n8,833,606.77 \n \n1,049,830.86 2,271,862.83 \n350,521.49 7,524.50 \n51,359.30 \n \n2,021,886.00 6,278,795.30 2,594,373.00 38,955,471.00 6,070,331.00 -10,085,961.84 \n \n$ ==5==8,=3=99=,6=0=0=.2=1 \n \n$ \n \n3,824,450.06 \n \n626,910.30 \n \n516,440.00 \n \n2,515,000.00 13,500,000.00 \n \n$ \n \n20,982,800.36 \n \n$ \n \n32,172,654.27 \n \n633,083.07 1,969,154.73 1,880,890.30 \n761 017.48 \n \n$ \n \n37,416,799.85 \n \n$ ==5=8,=3=99=,6=0=0=.2=1 \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 25,772,070.60 $ \n1,233,361.88 658,722.75 807,188.68 764,991.57 \n2,097,569.20 217,245.56 \n2,256,437.53 1,699,463.38 \n111,622.73 196,129.80 \n298,480.08 1,859,161.16 \n542,954.35 \n$ 38,515,399.27 $ \n \n4,448.82 \n177,000.62 876,580.24 1,058,029.68 \n \nThe notes to the basic financial statements are an integral part of this statement. -2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n14,847,076.21 \n \n697,690.45 325,015.44 472,014.60 285,108.82 832,404.53 74,334.10 1,166,959.91 646,479.80 $ 37,781.49 33,481.84 \n \n1,020,988.95 \n \n$ 20,439,336.14 $ \n \n$ 165,935.00 165,935.00 $ \n \n-10,920,545.57 \n-535,671.43 -333, 707 .31 -335,174.08 -479,882. 75 -1,265, 164.67 -142,911.46 -1,089,477.62 -887,048.58 -73,841.24 -162,647.96 \n-121,479.46 38,408.03 \n-542 954.35 \n-16,852,098.45 \n \n$ \n \n11,928,332.09 \n \n334,831.32 \n \n1,905,038.82 1,386,663.02 \n352,142.54 759,020.23 1,274,751.28 \n \n$ \n \n17 940 779.30 \n \n$ \n \n1,088,680.85 \n \n36,328,119.00 \n \n$ ===3=7'=4=16=,7=9=9=.8=5 \n \n-3- \n \n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2007 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 2,480,037.19 $ 4,741,655.02 $ 1,611,914.56 $ \n \n262,500.00 2,271,862.83 \n350,521.49 7,524.50 51,359.30 \n \n586,663.02 \n \n7,500.00 \n \n8,833,606.77 \n856,663.02 2,271,862.83 \n350,521.49 7,524.50 \n51,359.30 \n \nTotal Assets \n \n$ 5,423,805.31 $ 5,328,318.04 $ 1,619,414.56 $=====1=2=,3=71=,5=3=7=.9=1 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nSalaries and Benefits Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ 3,824,450.06 \n \n$ \n \n$ 626,910.30 \n \n516,440.00 \n \n$ 3,824,450.06 $ 1,143,350.30 \n \n$ \n \n$ 581,723.77 \n \n$ \n \n$ 344,197.30 $ 1,619,414.56 \n \n51,359.30 \n \n3,025,937.44 \n \n284,612.03 \n \n681,660.15 \n \n814,833.00 \n \n$ 1,599,355.25 $ 4,184,967.74 $ 1,619,414.56 $ \n \n3,824,450.06 626,910.30 516,440.00 \n4,967,800.36 \n581,723.77 1,963,611.86 \n51,359.30 3,025,937.44 \n284,612.03 \n681,660.15 814,833.00 \n7,403,737.55 \n \nTotal Liabilities and Fund Balances \n \n$ 5,423,805.31 $ 5,328,318.04 $ 1,619,414.56 $=====1=2=,3=71=,5=3=7=.9=1 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds {Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \n \n$ 7,403,737.55 \n \n$ 2,021,886.00 6,278,795.30 2,594,373.00 \n38,955,471.00 6,070,331.00 \n-10,085,961.84 \n \n45,834,894.46 \n \n193,167.84 \n \n-16,015,000.00 \n \nNet Assets of Governmental Activities {Exhibit \"A\") \n \n$ 37,416,799.85 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 12,031,906.12 352,142.54 $ \n17,505,256.94 3,100,014.20 1,058,029.68 205,305.34 1,275,838.14 \n \n$ 1,386,663.02 \n470,322.64 999.26 \n \n338,001.45 $ 1,905,038.82 \n83,392.25 15 184.54 \n \n12,369,907.57 3,643,844.38 \n17,505,256.94 3,100,014.20 1,058,029.68 759,020.23 1.292.021 .94 \n \n$ 35,528.492.96 $ 1,857,984.92 $ 2,341,617.06 $ 39,728,094.94 \n \n$ 24,033,714.76 $ 1,431,160.27 \n \n$ 25,464,875.03 \n \n1,187,649.63 658,722.75 771,473.55 764,991.57 \n2,095,071.70 217,245.56 \n2,279,404.19 1,777,595.73 \n111,622.73 171,775.23 294,417.58 1,877,455.73 \n \n39,617.10 62,014.70 6,458,695.26 \n \n1,187,649.63 658,722.75 811,090.65 764,991.57 \n2,095,071.70 217,245.56 \n2,279,404.19 1,839,610.43 \n111,622.73 171,775.23 294,417.58 1,877,455.73 6,458,695.26 \n \n$ 2,420,000.00 \n \n255.49 \n \n260,441.36 \n \n282,257.50 \n \n2,420,000.00 255.49 \n542,698.86 \n \n$ 36,241,140.71 $ 8,252.184.18 $ 2,702,257.50 $ 47.195,582.39 \n \n$ -712,647.75 $ -6,394, 199.26 $ -360,640.44 $ -7,467,487.45 \n \n2,312,003.00 10.579.167.00 1,980,055.00 14,871,225.00 \n \n$ 1,599,355.25 $ 4184 967.74 $ 1,619,414.56 $ 7.403.737.55 \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the gain on the sale of the building/equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the building/equipment sold. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ -7,467,487.45 \n \n$ 7,509,762.30 -999,264.43 \n \n6,510,497.87 \n \n-106,744.16 \n \n-267,585.41 \n \n2,420,000.00 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 1,088,680.85 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2007 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ 15,816.63 $ 107,194.95 29,044.45 \n \n$ 44 861.08 $ 107,194.95 \n \n$ 107,194.95 $ 44 861.08 $ 44,861.08 $ 107,194.95 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \nDEDUCTIONS Scholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n5,084.00 \n \n1 187.42 \n \n$ \n \n6,271.42 \n \n$ \n \n2,833.34 \n \n$ \n \n3,438.08 \n \n41,423.00 \n \n$ 44,861.08 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe White County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 10 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), grants from Georgia State Financing and Investment Commission and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \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. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be \n- 11 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \navailable 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 are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n \n- 12 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe White County Board ofCommissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on September 21, 2006 (levy date). Taxes were due on December 20, 2006 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2006 tax digest are reported as revenue in the governmental funds for fiscal year 2007. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $12,031,906.12 and for school bonds amounted to $338,001.35. \n \nTax millage rates levied for the 2006 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.431 mills .363 mills \n \n13.794 mills \n \n- 13 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,291,701.84 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the 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. \n \nCAPITAL ASSETS \n \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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount $5,000.00 or more $5,000.00 or more $5,000.00 or more \n \nNIA 20 years up to 80 years 5 to 20 years \n \n- 14 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \nGENERAL OBLIGATION BONDS \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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \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. \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. \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. \nNote 3: DEPOSITS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \n \n- 15 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $9,842,898.27. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \n- 16 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n9,775,710.33 \n \nTotal \n \n$ 9,775,710.33 \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2006 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2007 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand and Land Improvements Construction in Progress \n \n$ 2,021,886.00 \n \n$ 2,021,886.00 \n \n191,295.00 $ 6,278,795.30 $ 191,295.00 6,278,795.30 \n \nTotal Capital Assets Not Being Depreciated $ 2,213,181.00 $ 6,278,795.30 $ 191,295.00 $ 8,300,681.30 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$38,793,555.00 $ 262,017.00 $ 100,101.00 $38,955,471.00 5,305,057.00 1,027,424.00 262,150.00 6,070,331.00 2,658,560.00 132,821.00 197,008.00 2,594,373.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n4,625,514.00 2,918,260.00 1,834,597.00 \n \n484,158.24 388,708.13 126,398.06 \n \n38,175.40 253,498.19 \n \n5,071,496.84 3,053,469.94 1,960,995.06 \n \nTotal Capital Assets, Being Depreciated, Net $37,378,801.00 $ 422,997.57 $ 267,585.41 $37,534,213.16 \n \nGovernmental Activity Capital Assets - Net $32,521,982,QQ $ 6,:ZQl,122.8:Z $ 458,880.41 $45,834,894.46 \n \nCurrent year depreciation expense by function is as follows: \n \n- 17 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nInstruction Support Services \nPupil Services Educational Media Services School Administration Maintenance and Operation of Plant Student Transportation Services Enterprise Operations Food Services \n \n$ 705,613.68 \n \n$ 45,907.50 3,387.70 2,497.50 412.50 \n195,739.70 \n \n247,944.90 4,062.50 \n41,643.35 \n \n$ 999,264.43 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2007, were as follows: \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \n \n$ 344,197.30 $ 1,611,914.56 $ 800,000.00 $ 2,782,624.72 \n \nNote 7: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of \n \n- 18 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 7: RISK MANAGEMENT \n \nclaims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nThe School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of$400,000.00 loss per occurrence, up to $1,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees Superintendent \n \n$ 100,000.00 $ 50,000.00 \n \nNote 8: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-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. \n \n- 19 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 8: SHORT-TERM DEBT \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTemporary Loans \n \n$=~0-.0==0 $560,000.00 $560,000.00 $==o==='.o=a=o \n \nNote 9: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2001 General Government - Refunding - Series 2003 General Government - Series 2006 \n \n4.05% 2.90% 3.60% - 3.73% \n \n$ 1,995,000.00 4,020,000.00 10,000,000.00 \n \n$16,015,000.00 \n \nVoters have authorized $2,500,000.00 in general obligation debt for capital outlay and debt service payments which was not issued as of June 30, 2007. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2006 \n \n$18,435,000.00 \n \nDeductions Debt Retired \n \n2,420,000.00 \n \nBalance June 30, 2007 \n \n$16,015,000.00 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 2,515,000.00 \n \n- 20 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 9: LONG-TERM DEBT \n \nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2008 2009 2010 2011 2012 2013 - 2014 \n \n$ 2,515,000.00 $ 2,390,000.00 2,485,000.00 2,570,000.00 2,665,000.00 3,390,000.00 \n \n560,426.00 464,331.00 381,673.50 293,413.50 202,107.50 116,445.00 \n \nTotal Principal and Interest \n \n$16,015,000.00 $ 2,018,396.50 \n \nNote 10: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $773,078.22 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $745,822.56 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $23,131.94 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $4,123.72 \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007, together with funding available: \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n080-754-035/08-754-057 Agricultural Facility \n \n$ 5,312,142.22 $ 2,599,713.00 718,002.71 \n \n$ 6,030.144.93 $ 2.599)13.00 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 13: SUBSEQUENT EVENTS \n \nIn the subsequent fiscal year, the School District issued general obligation bonds in the amount of $2,500,000.00. The proceeds from these bonds will be used to pay a portion of the costs of (i) acquiring, constructing and equipping one new elementary school, (ii) acquiring, constructing and equipping a new gymnasium at the existing middle school, (iii) acquiring computers and computer technology equipment, (iv) acquiring, constructing and equipping a new agriculture exhibition facility, (v) adding to, constructing, renovating, repairing, improving, and equipping school system buildings and facilities, including but not limited to, athletic and fine arts facilities, security improvements and equipment, (vi) acquiring heating, air conditioning and energy efficiency equipment, (vii) acquiring textbooks and other instructional materials and transportation equipment, and (viii) paying the expenses incident to accomplishing the foregoing. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and \n \n- 22 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 14: RETIREMENT PLANS \n \nsurvivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 1,824,388.65 $ 1,652,852.00 $ 1,571,871.00 \n \n- 23 - \n \n (This page left intentionally blank) \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ 11,657,785.00 $ 11,657,785.00 $ 12,031,906.12 \n \n352,142.54 \n \n16,488,867.53 \n \n16,323,403.53 \n \n17,505,256.94 \n \n3,309,179.45 \n \n3,540,659.00 \n \n3,100,014.20 \n \n862,000.00 \n \n862,000.00 \n \n1,058,029.68 \n \n167,600.00 \n \n167,600.00 \n \n205,305.34 \n \n1,331,700.00 \n \n1,356,700.00 \n \n1,275,838.14 \n \n$ 33,817,131.98 $ 33,908,147.53 $ 35,528,492.96 \n \n$ 23,149,495.75 $ 23,208,867.54 $ 24,033,714.76 \n \n1,112,336.72 823,921.96 784,344.17 759,860.00 \n2,097,292.68 217,050.00 \n2,274,485.51 1,665,747.00 \n107,580.00 235,726.00 282,000.00 1,930,819.19 \n \n1,271,043.26 745,800.34 780,593.98 788,125.40 \n2,106,542.97 217,045.00 \n2,283,483.00 1,679,942.66 \n107,100.00 182,982.38 282,000.00 1,930,090.00 \n \n1,187,649.63 658,722.75 771,473.55 764,991.57 \n2,095,071.70 217,245.56 \n2,279,404.19 1,777,595.73 \n111,622.73 171,775.23 294,417.58 1,877,455.73 \n \n$ 35,440,658.98 $ 35,583,616.53 $ 36,241,140.71 \n \n$ -1,623,527.00 $ -1,675,469.00 $ \n \n-712 647.75 \n \n$ \n \n444,790.00 $ \n \n-144 790.00 \n \n99,665.00 -90,465.00 \n \n$ \n \n300,000.00 $ \n \n9,200.00 \n \n$ -1,323,527.00 $ -1,666,269.00 $ \n \n-712,647.75 \n \n2,303,506.21 \n \n2,303,506.21 \n \n2,312,003.00 \n \n10,981.42 \n \nFund Balances - Ending \n \n$ \n \n979,979.21 $ \n \n648,218.63 $ 1,599,355.25 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n-25- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Hurricane Education Recovery Act Improving Teacher Quality State Grants Migrant Education State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nHeath and Human Services, U. S. Department of Pass-Through From Ninth District Opportunity, Incorporated Head Start \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nNIA \n \nNIA \n \n$ \n \n$ \n \n(2) 1,691,726.52 \n1,691,726.52 \n \n10.550 \n \nN/A $ \n \n83 665.21 1 775 391.73 \n \n94.004 \n \nN/A \n \n$ \n \n18 537.48 \n \n84.027 84.173 \n \nNIA \n \n$ \n \nN/A \n \n$ \n \n672,851.48 19 623.21 \n692,474.69 \n \n84.318 84.938 84.367 84.011 84.298 \n. 84.010 84.287 84.048 \n \nN/A NIA NIA N/A N/A N/A N/A NIA \n$ \n \n34.00 (3) 126,248.18 \n2,656.91 5,332.03 846,651.00 343,631.90 40 852.15 \n2,057,880.86 \n \n93.600 \n \nNIA $ \n \n67126.06 \n \n$ \n \n147 196.08 \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n- 26 - \n \n$ ==4=,0=6=6=1,=32=.2=1= \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($203,925.62) were not maintained separately and are included in the 2007 National School Lunch Program. \n(3) Funds earned and expended in the prior period on the Hurricane Education Recovery Act, in the amount of $2,495.00, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Alternative Program Nursing Services Principal Supplements Vocational Supervisors Food Services Vocational Education Amended Formula Adjustment Other State Programs Graduation Coaches Health Insurance K-8 Statewide Reading and Math Grants Middle School Summer Remedial Program National Teacher Certification Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n- 28 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n229,764.86 \n \n1,175,203.00 93,673.00 \n2,618,644.98 196,864.00 \n1,205,814.00 229,670.00 \n2,205,995.00 1,547,165.00 \n720,290.00 \n120,576.00 127,499.00 1,175,744.00 360,646.00 231,206.00 491,761.00 \n87,064.00 164,518.00 \n56,369.00 362,994.00 112,448.00 \n67,731.00 \n480,583.00 754,092.00 906,104.00 \n570,361.00 65,935.00 20,000.00 82,480.00 12,713.00 18,859.00 \n102,064.00 101,959.00 -364,377.00 \n80,150.00 745,822.56 \n40,975.67 2,501.00 \n46,449.00 47,269.21 100,000.00 23,131.94 \n4,123.72 \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING CONTRACT Human Resources, Georgia Department of Family Connection \n \nSCHEDULE \"3\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n$ _ _-------'8=2\"\"\",4=2\"'-'1.-'--00=- \n$ 17,505,256.94 \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST(1l \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3)(4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nAcquisition, construction and equipping one new elementary school; adding to, renovating, repairing, improving and equipping existing school buildings; acquiring computers and computer technology equipment for the school system, and acquisition of land for additional schools \n \n$ 16,750,000.00 $ 20,663,324.00 $ 158,355.00 $ 11,483,436.00 Ongoing \n \nPaying a portion of the principal and interest due on the White County School District's Series 1993 General Obligation Bonds from August 1, 2003 through and including February 1, 2008 \n \n2,250,000.00 \n \n2,250,000.00 \n \n628,903.00 \n \n854,823.00 Ongoing \n \nAcquiring, constructing and equipping one new elementary school; acquiring, constructing and equipping a new gymnasium at the existing middle school; acquiring computers and computer technology equipment; acquiring, constructing and equipping a new agriculture exhibition facility; adding to, constructing, renovating, repairing, improving, and equipping school system buildings and facilities; including but not limited to athletic and fine arts facilities and security improvements and equipment; acquiring heating, air conditioning and energy efficiency equipment; acquiring textbooks and other instructional materials and transportation equipment; paying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds from August 1, 2008 through and including February 1, 2013 (the maximum amount of such payments not to exceed $1,600,000.00) \n \n19,000,000.00 \n \n19,000,000.00 7,937,305.00 \n \n313,263.00 Ongoing \n \n$ 38,000,000.00 $ 41,913,324.00 $ 8,724,563.00 $ 12,651,522.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n(4) During fiscal year 2003, the White County Board of Education issued General Obligation Refunding Bond Issue 2003 to refund portions of the 1993 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n- 30- \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,439,015.00 $ 1,522,141.32 $ \n \n23,105.40 $ 1,545,246.72 \n \n123,499.00 \n \n101,789.23 \n \n8,011.65 \n \n109,800.88 \n \n3,231,704.00 \n \n3,478,107.45 \n \n57,775.21 \n \n3,535,882.66 \n \n261,282.00 \n \n280,109.78 \n \n5,796.52 \n \n285,906.30 \n \n1,500,447.00 \n \n1,816,727.45 \n \n50,131.15 \n \n1,866,858.60 \n \n284,291.00 2,735,472.00 1,918,217.00 \n911,626.00 2,512,263.00 \n601,822.00 95,107.00 \n204,317.00 70 001.00 \n \n313,527.15 3,029,992.47 3,226,909.09 \n914,483.03 \n178,628.39 435,546.41 1,831,221.39 426,471.46 592,057.60 122,121.72 206,645.49 143 949.18 \n \n122,993.12 119,010.26 109,059.23 \n1,539.19 92,664.27 \n3,167.38 11,778.20 \n980.27 15,000.00 \n781.71 \n \n313,527.15 3,152,985.59 3,345,919.35 1,023,542.26 \n178,628.39 437,085.60 1,923,885.66 429,638.84 603,835.80 123,101.99 221,645.49 144 730.89 \n \n$ \n \n15,889,063.00 $ 18,620,428.61 $ 621,793.56 $ 19,242,222.17 \n \n450,308.00 84 892.00 \n \n537,056.99 \n \n153,245.89 \n \n690,302.88 90 337.96 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n16,424,263.00 $ 19,157,485.60 $ 775,039.45 $ 20,022,863.01 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 11, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe White County Board ofEducation \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2007, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated May 11, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. \nOur consideration ofinternal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \n2007YB-40 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the White County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the White County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the White County Board of Education's internal control. We consider items FS-7541-07-01 and FS-7541-07-02 in the accompanying Schedule ofFindings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the White County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. The significant deficiencies described above are considered to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management ofWhite County Board ofEducation in a separate letter dated May 11, 2008. \nWhite County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit White County Board of Education's response and, accordingly, we express no opinion on it. \n2007YB-40 \n \n This report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~ 0. 4.Lk \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007YB-40 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 11, 2008 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe White County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWhite County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. White County Board of Education's major Federal programs are identified in the Summary ofAuditor'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 White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require ,that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board ofEducation'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 White County Board ofEducation's compliance with those requirements. \n2007SA-10 \n \n In our opinion, the White County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2007. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over compliance. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type 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. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \nOur consideration 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. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~~~41--h Russell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-06-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Finding Control Number: FS-7541-06-01 \n \nWe concur with this finding. Central Office personnel will closely review all data before it is submitted to the auditors. The system does not anticipate a finding in this area again. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the White County Board of Education disclosed financial statement significant deficiencies related to the following control categories. \n \nCapital Assets \n \nFinancial Reporting \n \nAll ofthe significant deficiencies described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the White County Board of Education did not disclose any significant deficiencies in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The White County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.287 Twenty-First Century Community Leaming Centers \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The White County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-7541-07-01 \n \nCondition: \n \nThe School District failed to adequately maintain and record capital assets. \n \nCriteria: \n \nChapter 37 Fixed Assets of the Financial Management for Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system and maintain fixed asset inventory records. \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe net change in capital assets was calculated for posting to the accounting records using inaccurate capital asset depreciation registers. This resulted in current year depreciation expense being understated by $799,706.43, and accumulated depreciation being understated by $508,031.84. Correcting entries to the financial statements were proposed and accepted by the School District and are reflected in the audited financial statements. \n \nCause: \n \nThe School District did not implement an adequate system ofinternal control over the maintenance and recording of capital asset records. \n \nEffect: \n \nThe failure ofthe School District to maintain an accurate capital assets listing could lead to inaccurate internal and external reporting. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the fixed asset module is producing accurate and reliable information and that accurate postings are made to the general ledger. \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7541-07-02 \n \nCondition: \n \nThe School District did not have adequate controls in place over the financial statement reporting process. \n \n-2- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7541-07-02 \n \nCriteria: \n \nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the School District's financial statements. During the audit, several correcting entries were proposed by the auditor and accepted by the client to properly present the entity's fund level and entity-wide level financial statements. \n \nCause: \n \nThe School District did not implement an adequate system of internal control over the financial statement reporting process. \n \nEffect: \n \nThe School District does not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-3- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2007 \nFinding Control Number: FS-7541-07-01 \nWe concur with this finding. There was a software glitch that caused the depreciation to be calculated at the halfyear life instead of full year life. The Finance Director did not pick up on this and the financials were transmitted to Financial Review with the error. Once the error was pointed out during the audit, the Finance Director met with the software vendor to determine the root cause. A root cause could not be determined by the vendor, but the assets were corrected in the software system capital asset module. The Board ofEducation has hired a StaffAccountant that is a Certified Public Accountant who started in April 2008. With this additional resource, a thorough review will be done of the capital assets prior to transmitting to Financial Review. \nFinding Control Number: FS-7541-07-02 \nWe concur with this finding. The Board ofEducation has hired a StaffAccountant that is a Certified Public Accountant who started in April 2008. Trish Harris is very knowledgeable in GASB Statement 34 reporting requirements. With the continued training from Financial Review and the Department of Audits, we do not foresee any problems preparing the GASB 34 Financial Statements. \nContact Person: Tom McLean Title: Finance Director Phone: (706) 865-2315 Fax: (706) 865-7784 E-mail: tmc1ean@white.k12.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2005-h2006","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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":null,"fulltext":"WHITE COUNTY BOARD OF EDUCATION \nCLEVELAND, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \n1 2 4 5 6 7 8 9 11 \n25 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 9, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe White County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe White County Board of Education, as ofJune 30, 2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2006ARL-11 \n \n In accordance with Government Auditing Standards, we have also issued our report dated March 9, 2007, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope ofour testing ofinternal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through vii and page 25 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 ofAmerica. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the White County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n~-41.:1-s.. \nsell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2006ARL-11 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nINTRODUCTION \nOur discussion and analysis of the White County 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 and financial statements to enhance their understanding of the School District's financial performance. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2006 are as follows: \n On the District-wide financial statements, the assets of the School District exceeded liabilities by $36.3 million. Of this amount, $1.95 million is unrestricted and is available for spending at the School District's discretion. \n The School District had $33.9 million in expenses relating to governmental activities; only $19.8 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $16.6 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $16.6 million or 45.6% of all revenues totaling $36.4 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \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. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the White County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \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. \nDistrict-wide Statements \nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \nThe Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities. \nFund Financial Statements \nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. \n- 11 - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as scholarship funds, 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. \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \n \nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for this fiscal year. Net asset comparisons to fiscal year 2005 are available and have been included in the following analysis. \n \nTable 1 Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2006 \n \nYear 2005 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 18,654,144 $ 8,717,144 \n \n39,591,982 \n \n39,116,257 \n \nTotal Assets \n \n$ 58,246,126 $ 47,833,401 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 3,483,007 $ 3,294,874 \n \n18,435,000 \n \n10,760,000 \n \nTotal Liabilities \n \n$ 21,918,007 $ 14,054,874 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ 31,140,506 3,235,153 1,952,460 \n \n$ 29,135,715 2,401,420 2,241,392 \n \nTotal Net Assets \n \n$ 36,328.119 $ 33,778.527 \n \nTable 2 shows the Changes in Net Assets for this fiscal year. Revenue and Expense comparisons to fiscal year 2005 are available and are included in the following analysis. \n \n- 111 - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nTable 2 Change in Net Assets \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2006 \n \nYear 2005 \n \n$ 1,079,194 17,778,634 947 474 \n \n$ 1,020,628 17,124,399 \n158.972 \n \nTotal Program Revenues \n \n$ 19,805.302 $ 18,303.999 \n \nGeneral Revenues: \n \nTaxes \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$ 10,995,083 \n \nFor Debt Service \n \n313,952 \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Debt Service \n \n2,389,250 \n \nFor Capital Pr~ects \n \n800,000 \n \nIntangible Recor ing Tax \n \n513,185 \n \nReal Estate \n \n14,218 \n \nGrants and Contributions not Restricted to \n \nSpecific Programs \n \n20,507 \n \nInvestment Earnings \n \n352,987 \n \nMiscellaneous \n \n873,969 \n \nSpecial Items \n \nDonated Building \n \n325,000 \n \n$ 10,710,493 306,417 \n2,233,318 573,772 289,550 114,686 \n394,008 202,451 1,003,097 \n \nTotal General Revenues and Special Items \n \n$ 16.598.151 $ 15,827.792 \n \nTotal Revenues \n \n$ 36,403,453 $ 34,131.791 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services \nEducational Media Services General Administration School Administration Business Administration \nMaintenance and OJ?eration 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 \n \n$ 21,973,545 \n1,169,982 720,631 708,771 702,665 \n1,932,501 307,262 \n2,138,192 1,527,441 \n98,752 182,614 \n254,215 1,766,157 \n371.133 \n \n$ 20,129,723 \n1,111,374 732,525 721,112 607,367 \n1,848,249 188,518 \n2,055,998 1,379,077 \n91,749 208,697 \n328,316 1,685,155 \n456,473 \n \nTotal Expenses \n \n$ 33,853,861 $ 31,544.333 \n \nIncrease in Net Assets \n \n$ 2,549,592 $ 2,587.458 \n \n- lV - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nGovernmental Activities \n \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. Cost of service comparisons to fiscal year 2005 are available and have been included in the following analysis. \n \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2006 Year 2005 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2006 Year 2005 \n \nInstruction \n \n$ 21,973,545 $ 20,129,723 $ \n \nSupport Services \n \nPupil Services \n \n1,169,982 1,111,374 \n \nImprovement oflnstructional Services \n \n720,631 \n \n732,525 \n \nEducational Media Services \n \n708,771 \n \n721,112 \n \nGeneral Administration \n \n702,665 \n \n607,367 \n \nSchool Administration \n \n1,932,501 1,848,249 \n \nBusiness Administration \n \n307,262 \n \n188,518 \n \nMaintenance and Operation ofPlant \n \n2,138,192 2,055,998 \n \nStudent Transportation Services \n \n1,527,441 1,379,077 \n \nCentral Support Services \n \n98,752 \n \n91,749 \n \nOther Support Services \n \n182,614 \n \n208,697 \n \nOperations ofNon-Instructional Services \n \nEnterprise Operations \n \n254,215 \n \n328,316 \n \nFood Services \n \n1,766,157 1,685,155 \n \nInterest on Short-Term and Long-Term Debt \n \n371.133 \n \n456.473 \n \n8,098,825 $ \n510,772 405,834 328,367 482,383 1,313,213 255,145 1,235,856 875,678 \n71,543 156,691 \n27,253 -84,134 371.133 \n \n7,313,420 \n527,136 402,752 407,733 410,164 1,295,451 136,093 1,163,942 764,784 \n69,905 180,501 \n140,880 -28,900 456,473 \n \nTotal Expenses \n \n$ 33.853.861 $ 31,544.333 $ 14,048.559 $ 13.240.334 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \n \nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues, special items and other financing sources of $45.86 million and total expenditures and other financing uses of$36.44 million. \n \nGeneral Fund Budgeting Highlights \n \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. \n \n-v- \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nFor the General Fund, the final actual revenues and other financing sources of $31.35 million exceeded the original budgeted amounts of $32.55 million by $1.2 million. The significant change (final actual vs. original budget) was the State accounts receivable for funding July and August salaries and benefits. \n \nThe actual revenues of $31.25 million were within $35 thousand of the final budgeted amounts. \n \nThe final actual expenditures of $32.54 million were $129 thousand less than the original budgeted amount of $32.67 million. These were salaries and benefits payable. \n \nThe final actual expenditures of $32.54 million were $343 thousand less than the final budgeted amount of$32.89 million. \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets \n \nAt fiscal year ended June 30, 2006, the School District had $39.59 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category and accumulated depreciation. Capital assets comparisons to fiscal year 2005 are available and have been included in the following analysis. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2006 \n \nYear 2005 \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \n \n$ 2,021,886 191,295 \n34,168,041 2,386,797 823,963 \n \n$ 2,021,886 1,617,519 \n31,937,143 2,604,456 935,253 \n \nTotal \n \n$ 39,591,982 $ 39,116,257 \n \nDue to the ongoing growth in the county, the School District has construction projects including new buildings, additions and renovations. \n \nDebt \n \nAt fiscal year ended June 30, 2006, the School District had $18.435 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \n \n- vi - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2006 \n \nYear 2005 \n \nBonds Payable \n \n$ 18,435.000 $ 10,760.000 \n \nCURRENT ISSUES \n \nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \n \n Economic Slowdown - State funding for education has been stagnant and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite these challenges, the White County 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. \n \n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \n \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \n \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 Mr. Tom McLean, Finance Director at White County School District, 113 North Brooks Street, Cleveland, GA 30528. Mailing address is same as above. You may also email your question to Mr. McLean at tmclean@white.k12.ga.us \n \n- vii - \n \n WHITE COUNTY BOARD OF EDUCATION \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2006 \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n15,414,407 \n \n869,755 2,070,239 \n252,250 47,493 \n \n2,021,886 191,295 \n2,658,560 38,793,555 \n5,305,057 -9,378,371 \n \n$ ===5=8=,2=4=6=1,=26= \n \n$ \n \n841,190 \n \n2,641,817 \n \n2,420,000 16,015,000 \n \n$ \n \n21,918,007 \n \n$ \n \n31,140,506 \n \n573,373 2,593,407 \n68,373 1,952,460 \n \n$ \n \n36,328,119 \n \n$ ===5=8=,2=4=6=1'=26= \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2006 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Donated Building \nTotal General Revenues and Special Items \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n21,973,545 $ \n \n1,169,982 720,631 708,771 702,665 \n1,932,501 307,262 \n2,138,192 1,527,441 \n98,752 182,614 \n \n254,215 1,766,157 \n371 133 \n \n$ \n \n33,853,861 $ \n \n3,036 \n223,594 852,564 1 079 194 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET {EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n13,099,340 $ \n \n621,043 314,736 380,404 220,282 619,288 \n52,117 900,918 554,163 \n27,209 25,923 \n \n963,211 \n \n$ \n \n17 778 634 $ \n \n772,344 $ 38,167 61 \n1,418 97,600 \n3,368 34,516 \n947 474 $ \n \n-8,098,825 \n-510,772 -405,834 -328,367 -482,383 -1,313,213 -255, 145 -1,235,856 -875,678 \n-71,543 -156,691 \n-27,253 84,134 -371 133 \n-14,048,559 \n \n$ \n \n10,995,083 \n \n313,952 \n \n2,389,250 800,000 513,185 14,218 20,507 352,987 873,969 \n \n325,000 \n \n$ \n \n16,598,151 \n \n$ \n \n2,549,592 \n \n33,778,527 \n \n$ ===3=6=,3=2=8=1'=19= \n \n-3- \n \n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2006 \n \nEXHIBIT\"C\" \n \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries Payable \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,425,028 $ 10,579,167 $ 1,410,212 $ 15,414,407 \n \n2,070,239 252,250 47 493 \n \n569,843 \n \n569,843 2,070,239 \n252,250 47 493 \n \n$ 5,795,010 $ 10,579,167 $ 1,980,055 $ 18,354,232 \n \n$ 841,190 2,641,817 \n$ 3,483,007 \n \n$ 841,190 2,641,817 \n$ 3,483,007 \n \n$ 525,880 \n \n$ 525,880 \n \n$ 604,639 $ 1,980,055 \n \n2,584,694 \n \n47,493 \n \n47,493 \n \n9,150,471 \n \n9,150,471 \n \n1,738,630 \n \n824,057 \n \n1,738,630 824,057 \n \n$ 2,312,003 $ 10,579,167 $ 1,980,055 $ 14,871,225 \n \n$ 5,795,010 $ 10,579,167 $ 1,980,055 $ 18,354,232 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 14,871,225 \n \n$ 2,021,886 191,295 \n2,658,560 38,793,555 \n5,305,057 -9,378,371 \n \n39,591,982 \n \n299,912 \n \n-18,435,000 $ 36,328,119 \n \nThe notes to the basic financial statements are an integral part of this statement. \n-5- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Long-Term Capital-Related Debt Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 10,668,310 527,403 $ \n15,215,689 2,681,052 1,079,194 \n207,006 872,937 \n \n$ 304,687 $ 10,972,997 \n \n800,000 2,389,250 \n \n3,716,653 \n \n849,874 \n \n16,065,563 \n \n2,681,052 \n \n1,079,194 \n \n83,060 \n \n62,921 \n \n352,987 \n \n500 \n \n14,520 \n \n887,957 \n \n$ 31,251,591 $ 1,733,434 $ 2,771,378 $ 35,756,403 \n \n$ 21,216,494 \n \n$ 21,216,494 \n \n1,121,165 720,555 715,771 702,665 \n1,932,501 189,152 $ \n2,204,358 1,445,685 \n98,752 182,614 250,022 1,765,250 \n \n118,110 984,347 \n \n1,121,165 720,555 715,771 702,665 \n1,932,501 307,262 \n2,204,358 1,445,685 \n98,752 182,614 250,022 1,765,250 984,347 \n \n$ 2,325,000 371,133 \n \n2,325,000 371.133 \n \n$ 32,544,984 $ 1,102,457 $ 2,696,133 $ 36,343,574 \n \n$ -1,293,393 $ 630,977 $ 75,245 $ -587 171 \n \n$ 10,000,000 \n \n$ 100,000 \n \n$ \n \n-100,005 \n \n$ 10,000,000 \n \n5 \n \n100,005 \n \n-100,005 \n \n$ 100,000 $ 9,899,995 $ \n \n5 $ 10,000,000 \n \n$ -1,193,393 $ 10,530,972 $ 75,250 $ 9,412,829 \n \n3,505.396 \n \n48,195 1,904,805 \n \n5,458.396 \n \n$ 2,312,003 $ 10,579,167 $ 1,980,055 $ 14,871,225 \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the gain on the sale of the equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the equipment sold. \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from: \nGeneral Obligation Bonds Issued \nDonated Capital Assets are not reported in Governmental Funds. However, in the Statement of Activities, the donated value is shown as a Special Item. \nDonated Buildings \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ 9,412,829 \n \n$ 1,163,483 -998,771 \n \n164,712 336,039 \n \n-13,988 \n \n-10,000,000 325,000 \n \n2,325,000 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ =====-2,..,54.,.9=,5=9=2 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2006 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n17,879 $ \n \n94,083 \n \n23 544 \n \n$ \n \n41 423 $ ===94-08=3= \n \n$ \n \n94,083 \n \n$ _ _-'-4\"-'1-'-'42=3'- \n \n$ \n \n41 423 $ ===94===08=3= \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nADDITIONS Contributions Donors Investment Earnings Interest \nTotal Additions DEDUCTIONS \nScholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n5,244 \n \n718 \n \n$ \n \n5,962 \n \n2,000 \n \n$ \n \n3,962 \n \n37 461 \n \n$ ===4=1,.,.42=3= \n \nThe notes to the basic financial statements are an integral part of this statement. -9 - \n \n (This page left intentionally blank) \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe White County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 11 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \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. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable \n- 12 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nand 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 are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n- 13 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe White County Board of Commissioners fixed the property tax levy for the 2005 tax digest year (calendar year) on September 22, 2005 (levy date). Taxes were due on December 20, 2005 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2005 tax digest are reported as revenue in the governmental funds for fiscal year 2006. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2006, for maintenance and operations amounted to $10,668,310 and for school bonds amounted to $304,687. \n \nTax millage rates levied for the 2005 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.215 mills .364 mills \n \n13.579 mills \n \n- 14 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,189,250 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the 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. \n \nCAPITAL ASSETS \n \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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount $5,000 or more $5,000 or more $5,000 or more \n \nNIA 20 years up to 80 years 5 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 15 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL OBLIGATION BONDS \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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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. \nNote 3: DEPOSITS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n- 16 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2006, the bank balances were $16,287,259. The amounts ofthe total bank balances are classified into four categories of custodial credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \nCategory 4 - Uncollateralized. \n \nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 161,344 \n \n2 \n \n0 \n \n3 \n \n16,125,915 \n \n4 \n \n0 \n \nTotal \n \n$ 16,287,259 \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 17 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July 1, 2005 \n \nIncreases \n \nDecreases \n \nBalances June 30. 2006 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,021,886 1,617,519 $ \n \n$ 2,021,886 \n \n191,295 $ 1,617,519 \n \n191.295 \n \nTotal Capital Assets Not Being Depreciated $ 3,639,405 $ 191.295 $ 1,617,519 $ 2,213,181 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 36,096,859 $ 6,740,317 2,647,060 \n \n2,696,696 206,512 $ 11,500 \n \n$ 38,793,555 \n \n1,641,772 \n \n5,305,057 \n \n2,658,560 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n4,159,716 4,135,861 1,711,807 \n \n465,798 410,183 122.790 \n \n1,627,784 \n \n4,625,514 2,918,260 1,834,597 \n \nTotal Capital Assets, Being Depreciated, Net $ 35,476.852 $ 1.915.937 $ \n \n13,988 $ 37,378,801 \n \nGovernmental Activity Capital Assets - Net $ 39,116.257 $ 2,107.232 $ 1,631.507 $ 39,591.982 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Maintenance and Operation of Plant Student Transportation Services Enterprise Operations Food Services \n \n$ 715,260 \n \n$ \n \n45,736 \n \n71 \n \n1,663 \n \n191,401 \n \n238,871 3,921 \n40 719 \n \n$====9==98\"\"',7\"='7===1 \nNote 6: RESTRICTED ASSETS \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2006, were as follows: \n \n- 18 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects Bond Proceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \n \n$ 604,639 $ 1,410,212 $ 9,150,471 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2006, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nGeneral Fund Debt Service Fund \n \n$ 100,000 5 \n \nTotal \n \n$=~1=00-,0~0~5 \n \nTransfers are used to reimburse the General Fund for a prior fiscal year transfer oflocal funds to the District-wide Capital Projects Fund, and to move local funds to Debt Service Fund as an opening deposit for a new bank account. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the \n \n- 19 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 8: RISK MANAGEMENT \n \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. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2005 2006 \n \n$ \n \n0 $ \n \n5 700 $ \n \n5 700 $ \n \n0 \n \n$ \n \n0 $ \n \n0 $ \n \n0 $ \n \n0 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $400,000 loss per occurrence, up to $1,000,000. \n \nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees \n \n$ 100,000 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-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. \n \n- 20 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 9: SHORT-TERM DEBT \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTemporary Loans \n \n$=======0 $ 885,000 $ 885,000 $======0 \n \nNote 10: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2001 General Government - Refunding - Series 2003 General Government - Series 2006 \n \n4.05% 2.90% 3.60% - 3.73% \n \n$ 3,910,000 4,525,000 10,000,000 \n \n$ 18,435.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2005 \n \n$ 10,760,000 \n \nAdditions G. 0. Bonds \n \n10,000,000 \n \nDeductions Debt Retired \n \n2,325,000 \n \nBalance June 30, 2006 \n \n$ 18,435,000 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 2,420,000 \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 10: LONG-TERM DEBT \n \nAt June 30, 2006, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2007 2008 2009 2010 2011 2012 - 2016 \n \n$ 2,420,000 $ 2,515,000 2,390,000 2,485,000 2,570,000 6,055,000 \n \n542,699 560,426 464,331 381,674 293,414 318.553 \n \nTotal Principal and Interest \n \n$ 18,435.000 $ 2,561.097 \n \nNote 11: SPECIAL ITEMS \n \nIn the fiscal year 2006, the White County Board of Education received a building donation from concerned parents of softball and baseball players. The asset is recorded at estimated fair market value at the date donated. The donation is reported as a special item on the Statement ofActivities. \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2006: \n \nProject \n \nUnearned Executed Contracts \n \nWhite County Middle School Fieldhouse Mossy Creek Elementary School \n \n$ \n \n11,185 \n \n9,689,010 \n \n$ 9,700.195 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \n-22 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \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: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2006 2005 2004 \n \n100% 100% 100% \n \n$ 1,652,852 $ 1,571,871 $ 1,486,790 \n \n- 23 - \n \n (This page left intentionally blank) \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ \n \n10,916,300 $ \n \n10,916,300 $ \n \n10,668,310 \n \n527,403 \n \n15,005,516 \n \n14,870,018 \n \n15,215,689 \n \n3,030,942 \n \n3,221,432 \n \n2,681,052 \n \n1,590,700 \n \n905,000 \n \n1,079,194 \n \n130,470 \n \n130,400 \n \n207,006 \n \n538,500 \n \n1,243,760 \n \n872 937 \n \n$ \n \n31,212,428 $ \n \n31,286,910 $ \n \n31,251,591 \n \n$ \n \n21,380,589 $ \n \n21,493,995 $ \n \n21,216,494 \n \n1,114,902 786,254 732,105 631,454 \n1,933,317 196,780 \n2,121,245 1,341,225 \n104,805 160,455 360,000 1 811 250 \n \n1,131,532 802,792 725,383 633,312 \n1,961,007 196,780 \n2,120,970 1,382,660 \n104,805 163,415 360,000 1811254 \n \n1,121,165 720,555 715,771 702,665 \n1,932,501 189,152 \n2,204,358 1,445,685 \n98,752 182,614 250,022 1,765,250 \n \n$ \n \n32,674,381 $ \n \n32,887,905 $ \n \n32,544,984 \n \n$ \n \n-1 461 953 $ \n \n-1,600,995 $ \n \n-1,293,393 \n \n$ \n \n1,336,322 $ \n \n-1112495 \n \n825,345 $ -825 345 \n \n100,000 \n \n$ \n \n223,827 $ \n \n0 $ \n \n100 000 \n \n$ \n \n-1,238, 126 $ \n \n-1,600,995 $ \n \n-1,193,393 \n \n4 261 218 \n \n4,268,309 \n \n3,505,396 \n \nFund Balances Ending \n \n$ \n \n3,023,092 $ \n \n2,667,314 $===2=,3=1=2,=00=3= \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n 25  \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \nTotal U.S. Department of Agriculture \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education English Language Acquisition Grants Enhancing Education Through Technology Program Hurricane Education Recovery Improving Teacher Quality State Grants Migrant Education Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Pass-Through From Ninth District Opportunity, Incorporated Head Start \nTotal Federal Financial Assistance \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nNIA \nN/A $ \n$ \n \n(2) 1,592,741 \n1,592,741 \n \n10.550 10.665 \n \nN/A NIA \n$ \n \n79,644 (3) 1,672,385 \n \n94.004 \n \nN/A $ \n \n30,204 \n \n. 84.027 . 84.173 \n \nN/A $ N/A \n$ \n \n609,843 19487 \n629,330 \n \n84.365 84.318 84.938 84.367 84.011 84.186 \n. 84.298 84.010 84.048 \n \nN/A NIA N/A N/A \nN/A \nN/A N/A N/A N/A \n$ \n \n917 14,667 (4) 137,901 \n950 21,576 10,511 827,113 40 887 \n1,683,852 \n \n93.600 \n \nN/A $ \n \n76 526 \n \n$ ======3,=46=2=,9=6=7 \n \n- 26- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($192,837) were not maintained separately and are included in the 2006 National School Lunch Program. \n(3) Funds earned on this program, in the amount of $20,507, do not require reporting of expenditures. (4) Funds earned on the Hurricane Education Recovery program, in the amount of $7,445, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nGRANTS \n \nBright From the Start: \n \nGeorgia Department of Early Care and Learning \n \nPre-Kindergarten Program \n \n$ \n \n239,874 \n \n$ \n \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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Alternative Program Nursing Services Principal Supplements Migrant Education Food Services Vocational Education Austerity Reduction Other State Programs National Teacher Certification Preschool Handicapped Program Statewide Local Education Improvement \n \n989,302 129,456 2,369,686 287,601 1,172,821 193,213 2,070,775 1,439,358 798,532 \n141,270 135,011 1,099,882 382,626 194,236 407,441 \n6,427 156,174 \n61,860 330,746 105,423 \n65,095 \n458,392 717,878 899,988 \n537,913 97,600 20,000 83,467 12,961 8,650 97,468 \n102,061 -850,984 \n44,487 49,931 60,273 \n \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \n \n$ \n \n849,874 \n \nTOTAL \n239,874 \n989,302 129,456 2,369,686 287,601 1,172,821 193,213 2,070,775 1,439,358 798,532 \n141,270 135,011 1,099,882 382,626 194,236 407,441 \n6,427 156,174 \n61,860 330,746 105,423 \n65,095 \n458,392 717,878 899,988 \n537,913 97,600 20,000 83,467 12,961 8,650 97,468 \n102,061 -850,984 \n44,487 49,931 60,273 \n849,874 \n \n- 28- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nCONTRACT Human Resources, Georgia Department of Family Connection \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ _ _ _9_8~79~5~ - - - - - $ _ _ _~9~8~7~95~ \n \n$ 15,215,689 $ \n \n849,874 $==1=6=,0=6=5=,5=63= \n \nSee notes to the basic financial statements. \n \n- 29- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"4\" \n \nPROJECT \nAcquisition, construction and equipping one new elementary school; adding to, renovating, repairing, improving and equipping existing school buildings; acquiring computers and computer technology equipment for the school system, and acquisition of land for additional schools \nPaying a portion of the principal and interest due on the White County School District's Series 1993 General Obligation Bonds from August 1, 2003 through and including February 1, 2008 \nAcquiring, constructing and equipping one new elementary school; acquiring, constructing and equipping a new gymnasium at the existing middle school; acquiring computers and computer technology equipment; acquiring, constructing and equipping a new agriculture exhibition facility; adding to, constructing, renovating, repairing, improving, and equipping school system buildings and facilities; including but not limited to athletic and fine arts facilities and security improvements and equipment; acquiring heating, air conditioning and energy efficiency equipment; acquiring textbooks and other instructional materials and transportation equipment; paying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds from August 1, 2008 through and including February 1, 2013 (the maximum amount of such payments not to exceed $1,600,000) \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS(2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n$ 16,750,000 $ 20,663,324 $ \n \n993,973 $ 10,489,463 Ongoing \n \n2,250,000 \n \n2,250,000 \n \n623,258 \n \n231,565 Ongoing \n \n19,000,000 \n \n19,000,000 \n \n313,263 \n \nOngoing \n \n$ 38,000,000 $ 41,913,324 $ \n \n1,930,494 $ 10,721,028 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n(4) During fiscal year 2003, the White County Board of Education issued General Obligation Refunding Bond Issue 2003 to refund portions of the 1993 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n- 30- \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n1,236,113 $ \n159,653 2,929,285 \n347,790 1,435,198 \n262,917 2,558,934 1,792,124 \n972,775 2,425,894 \n514,743 11,717 \n193,000 66100 \n \n1,323,151 $ \n161,094 3,593,225 \n383,513 1,994,035 \n268,754 3,180,266 3,301,605 \n825,389 \n196,497 404,431 1,931,745 427,458 644,319 \n10,546 205,452 \n32407 \n \n43,225 $ \n6,279 124,972 \n2,356 218,028 \n221,576 246,798 \n96,418 \n2,579 77,773 \n4,386 14,056 \n1,013 15,000 \n \n1,366,376 167,373 \n3,718,197 385,869 \n2,212,063 \n268,754 3,401,842 3,548,403 \n921,807 \n196,497 407,010 2,009,518 431,844 658,375 \n11,559 220,452 \n32407 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n14,906,243 $ 18,883,887 $ \n \n1,074,459 $ \n \n19,958,346 \n \nMedia Center Program Staff and Professional Development \n \n409,522 81 280 \n \n583,599 29,998 \n \n154,820 47737 \n \n738,419 77 735 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n15,397,045 $ 19.497.484 $ \n \n1,277,016 $ ====2=0,=77=4=,5=0=0 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 9, 2007 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2006, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated March 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect White County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7541-0601. \n2006YB-30 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \n \nCompliance and Other Matters \n \nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \n \nThis report is intended solely for the information and use of the management and members of the White County Board ofEducation and is not intended to be and should not be used by anyone other than these specified parties. \n \nRespectfully submitted, \n \n. \n \n'w,cl,il~C.- ti)_______..~ \nRussell W. Hinton, CPA, CGFM State Auditor \n \nRWH:as 2006YB-30 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 9, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWhite County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2006. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 White County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2006SA-10 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board ofEducation's compliance with those requirements. \nIn our opinion, the White County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2006. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~~ \nRus 11 W. Hinton, CPA, CGFM State Auditor \nRWH:as 2006SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-04-01 FS-7541-05-01 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was unqualified. \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the White County Board of Education disclosed a financial statement reportable condition related to the following control category. \nCapital Assets \nThe reportable condition described above is not considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the White County Board of Education did not disclose any reportable conditions in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The White County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 84.010 Title I Grants to Local Educational Agencies 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n9. Low Risk Auditee The White County Board ofEducation qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Reportable Condition Finding Control Number: FS-7541-06-01 \n \nCondition: \n \nThe School District failed to adequately maintain and record capital assets. \n \nCriteria: \n \nChapter 37 Fixed Assets of the Financial Management for Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system and maintain fixed asset inventory records. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCurrent year depreciation expense was calculated at one-half of a year (six months), rather than a full year (twelve months), for all capital assets being depreciated. This resulted in current year depreciation expense and accumulated depreciation being understated by $486,202 and Capital Assets, Net being overstated by this same amount. An audit adjustment was made to correct this error. \n \nCause: \n \nThe School District failed to monitor the fixed asset module activity related to the automated annual depreciation expense calculation. The School District's approved capital assets policy identifies the Straight-Line \"HalfYear Convention\" method for calculating depreciation. This method expenses six months of depreciation in the first and last years of an assets useful life. For fiscal year 2006, the asset module utilized the \"Half-Year Convention\" for all assets being depreciated. \n \nEffect: \n \nThe failure ofthe School District to maintain an accurate capital assets listing could lead to inaccurate internal and external reporting. \n \nRecommendation: The School District should implement procedures to ensure that the fixed asset module is producing accurate and reliable information. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-2- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2006 \nFinding Control Number: FS-7541-06-01 \nWe concur with this finding. Central Office personnel will closely review all data before it is submitted to the auditors. The system does not anticipate a finding in this area again. \nContact Person: Tom McLean, Finance Director Phone: (706) 865-2315 Fax Number: (706) 865-7784 E-mail Address: tmclean@white.k12.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2004-h2005","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2004-h2005"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2004-h2005"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2003-h2004","title":"White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2004-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001; ceased with fiscal year ended June 30, 2008, released in 2009.","Report year covers fiscal year.","Has supplements: White County Board of Education, Cleveland, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"WHITE COUNTY BOARD OF EDUCATION \nCLEVELAND, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n10 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n11 \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n13 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n30 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n32 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 15, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the White County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm10ns. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education, as of June 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2004ARL-11 \n \n In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2005, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope ofour testing of internal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through viii and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States ofAmerica. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the White County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24. \nRespectfully submitted, \n \nRWH:as 2004ARL-11 \n \nState Auditor \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nINTRODUCTION \nOur discussion and analysis of the White County 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. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2004 are as follows: \n On the District-wide financial statements, the assets of the School District exceeded liabilities by $31.2 million. Of this amount, $3.3 million is unrestricted and is available for spending at the School District's discretion. \n The School District had $29.9 million in expenses relating to governmental activities; only $18.4 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $14.6 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $14.6 million or 44% of all revenues totaling $33 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \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. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the White County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \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. \nDistrict-wide Statements \nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \nThe Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities. \nFund Financial Statements \nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. \n- 11 - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as scholarship funds, 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. \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \n \nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for this fiscal year. Net asset comparisons to fiscal year 2003 are available and have been included in the following analysis. \n \nTable 1 Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 10,798,723 $ 15,010,586 36,730,748 33,181,410 \n \nTotal Assets \n \n$ 47,529,471 $48,191,996 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 3,338,402 $ 3,577,609 13,000,000 16,540,000 \n \nTotal Liabilities \n \n$ 16,338,402 $ 20,117,609 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$24,774,301 $21,766,520 \n \n3,066,870 4,358,804 \n \n3,349,898 \n \n1,949,063 \n \nTotal Net Assets \n \n$31,191,069 $ 28,074,387 \n \nTable 2 shows the Change in Net Assets for this fiscal year. Revenue and Expense comparisons to fiscal year 2003 are available and are included in the following analysis. \n \n- 111 - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nTable 2 Change in Net Assets \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Service Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Gain on Sale of Land \nTotal General Revenues and Special Items \nTotal Revenues \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 Sup1\u003e0rt Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2004 \n \nYear 2003 \n \n$ 1,285,624 16,714,306 385,944 \n$ 18,385,874 \n \n$ 838,594 16,730,193 2,399,262 \n$ 19,968,049 \n \n$ 9,797,503 $ 8,952,697 \n \n295,954 \n \n290,032 \n \n2,378,886 329,561 476,610 38,067 \n498,716 138,202 590,411 \n93,042 \n$ 14,636,952 \n$ 33,022,826 \n \n2,311,034 210,411 452,736 76,344 \n196,869 351,798 1,044,756 \n$ 13,886,677 \n$ 33,854,726 \n \n$19,449,755 \n1,069,981 628,827 687,344 451,281 \n1,622,816 182,608 \n1,823,750 1,223,470 \n170,862 131,005 \n386,835 1,548,346 \n529,264 \n$29,906,144 \n$ 3!116!682 \n \n$19,392,116 \n1,042,641 720,890 657,891 385,897 \n1,618,026 196,493 \n1,832,660 1,251,955 \n161,370 190,055 \n97,365 1,559,414 1,100,123 \n$ 30,206,896 \n$ 3!647!830 \n \n- lV - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nGovernmental Activities \n \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. Cost of service comparisons to fiscal year 2003 are available and have been included in the following analysis. \n \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$19,449,755 $19,392,116 $ \n \n1,069,981 628,827 687,344 451,281 \n1,622,816 182,608 \n1,823,750 1,223,470 \n170,862 131,005 \n \n1,042,641 720,890 657,891 385,897 \n1,618,026 196,493 \n1,832,660 1,251,955 \n161,370 190,055 \n \n386,835 1,548,346 \n529,264 \n \n97,365 1,559,414 1,100,123 \n \n6,589,505 $ \n399,047 461,503 297,159 400,285 1,040,487 182,608 921,619 588,043 170,862 109,148 \n-29, 132 -140,128 529,264 \n \n5,211,647 \n650,777 486,568 348,311 337,691 1,068,185 193,663 929,958 114,501 -265,296 143,946 \n-2,841 -78,386 1,100,123 \n \nTotal Expenses \n \n$ 29,906.144 $ 30,206,896 $ 11,520.270 $ 10.238.847 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \n \nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues, special items and other financing sources of $33.5 million and total expenditures and other financing uses of $37.5 million. \n \nGeneral Fund Budgeting Highlights \n \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. \n \n-v- \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nFor the General Fund, the final actual revenues and other financing sources of $29.8 million exceeded the original budgeted amounts of $28.7 million by $1.1 million. The significant changes (final actual vs. original budget) were the additional austerity reduction of $0.324 million added after the budget was submitted, $0.83 million contribution from a private source, and additional $0.462 million for intangible taxes and the school activity revenues of $0.969 million that were not budgeted. \n \nThe actual revenues and other financing sources of $29.8 million exceeded the final budgeted amounts of $28.6 million by $1.2 million. This difference is due primarily to the $0.969 million in school activity budgets not budgeted and from the discussion above. \n \nThe final actual expenditures of $29.1 million agreed to the original budgeted amount of $29.1 million. School activity accounts expenses of $0.954 million were not included in the original budget. The School District and Administration froze spending at the January Board meeting. This saved the district $0.950 million in expenses. \n \nThe final actual expenditures of $29.1 million exceeded the final budgeted amount of $28.9 million by $0.2 million. School activity accounts budgeted expenditures of $0.954 million were not included in the final budget. Again, the School District saved $0.686 million through the spending freeze in this comparison. \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets \n \nAt fiscal year ended June 30, 2004, the School District had $36.7 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category and accumulated depreciation. Capital assets comparisons to fiscal year 2003 are available and have been included in the following analysis. \n \nTable 4 Capital Assets at June 30 \n(Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nLand Construction in Progress Buildings and Building Improvements Equipment Land Improvements \n \n$ 2,021,886 871,420 \n30,249,743 2,561,530 1,026,169 \n \n$ 2,260,994 6,174,228 \n21,418,381 2,463,220 864,587 \n \nTotal \n \n$36,730.748 $ 33,181.410 \n \n- Vl - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nDue to the ongoing growth in the county, the School District has construction projects including new buildings, additions and renovations. \n \nDebt \n \nAt fiscal year ended June 30, 2004, the School District had $13 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nBonds Payable \n \n$ 13,000,000 $ 16,540,000 \n \nCURRENT ISSUES \n \nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \n \n Economic Slowdown - State funding for education has been stagnant and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite these challenges, the White County 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. \n \n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \n \n- Vll - \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 CONTACTING 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 Mr. Tom McLean, Finance Director at White County School District, 113 North Brooks Street, Cleveland, Georgia 30528. Mailing address is same as above. You may also email your question to Mr. McLean at tmc1ean@white.k12.ga.us \n- Vlll - \n \n WHITE COUNTY BOARD OF EDUCATION \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2004 \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n7,988,799 \n \n772,751 1,905,329 \n75,098 56,746 \n \n2,021,886 871,420 \n2,615,610 33,968,230 \n6,245,527 -8,991,925 \n \n$ ===4=7=5=2=9=4=71= \n \n$ \n \n681,873 \n \n2,464,532 \n \n29,612 \n \n162,385 \n \n2,240,000 10,760,000 \n \n$ \n \n16,338,402 \n \n$ \n \n24,774,301 \n \n563,390 2,014,835 \n488,645 3,349,898 \n \n$ \n \n31 191 069 \n \n$ ===4==7=,5=2=9=,4=71= \n \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30. 2004 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Gain on Sale of Land \nTotal General Revenues and Special Items \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n19,449,755 $ \n \n1,069,981 628,827 687,344 451,281 \n1,622,816 182,608 \n1,823,750 1,223,470 \n170,862 131,005 \n \n386,835 1,548,346 \n529,264 \n \n$ \n \n29,906,144 $ \n \n112,305 \n415,967 757,352 1,285,624 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n12,502,923 $ \n \n659,101 167,305 390,185 50,996 582,329 \n \n901,967 516,034 \n \n21,857 \n \n921,609 \n \n$ \n \n16 714 306 $ \n \n245,022 $ 11,833 19 \n164 119,393 \n9,513 385 944 $ \n \n-6,589,505 \n-399,047 -461,503 -297,159 -400,285 -1,040,487 -182,608 -921,619 -588,043 -170,862 -109, 148 \n29,132 140,128 -529 264 \n-11,520,270 \n \n$ \n \n9,797,503 \n \n295,954 \n \n2,378,886 329,561 476,610 38,067 498,716 138,202 590,411 \n \n93,042 \n \n$ \n \n14,636,952 \n \n$ \n \n3,116,682 \n \n28,074,387 \n \n$ ===3=1='1=9=1,=06=9= \n \n-5- \n \n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2004 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 4,965,083 $ 1,490,073 $ 1,533,643 $ \n \n286,358 1,905,329 \n75,098 56 746 \n \n480,186 \n \n7,988,799 \n766,544 1,905,329 \n75,098 56,746 \n \nTotal Assets \n \n$ \n \n7,288,614 $ \n \n1,490,073 $ \n \n2,013,829 $ ======1o=1, =9=2'=5=16= \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ \n \n681,873 \n \n2,464,532 \n \n$ \n \n162,385 \n \n$ 3,308,790 $ \n \n$ \n \n506,644 \n \n56,746 $ \n \n3,416,434 \n \n$ 3,979,824 $ \n \n29,612 29,612 \n$ 752,740 707 721 1,460,461 $ \n \n$ $ $ 2,013,829 \n2,013,829 $ \n \n681,873 2,464,532 \n29,612 162,385 \n3,338,402 \n506,644 2,013,829 \n56,746 752,740 \n3,416,434 707 721 \n7,454,114 \n \nTotal Liabilities and Fund Balances \n \n$ 7,288,614 $ 1,490,073 $ 2,013,829 $ ===1=0=,7=9=2,=51=6= \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2004 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \n \n$ \n \n7,454,114 \n \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \n \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \n \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \n \n$ 2,021,886 871,420 \n2,615,610 33,968,230 \n6,245,527 -8,991,925 \n \n36,730,748 \n \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \n \n6,207 \n \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \n \nBonds Payable \n \n-13,000,000 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 31,191,069 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nSPECIAL ITEMS \nProceeds from Sale of Land \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 9.839,738 500,197 $ \n14,849,546 2,375,574 952,419 70,827 980 177 \n$ 29,568,478 $ \n \n$ 329,561 266,551 \n \n297,191 $ 2,393,366 \n \n44,570 50 734 \n \n22,805 \n \n691416 $ 2,713,362 $ \n \n10,136,929 3,223,124 \n15,116,097 2,375,574 952,419 138,202 1 030 911 \n32,973,256 \n \n$ 19,081,861 \n \n$ 19,081,861 \n \n1,428,584 628,782 687,344 451,281 \n1,622,816 181,495 \n1,823,359 1,292,255 \n170,862 131,005 \n76,232 1,525,648 \n$ \n \n$ 4,062,689 \n \n1,113 \n \n1,428,584 628,782 687,344 451,281 \n1,622,816 182,608 \n1,823,359 1,292,255 \n170,862 131,005 \n76,232 1,525,648 4,062,689 \n \n3,540,000 529,264 \n \n3,540,000 529 264 \n \n$ 29,101,524 $ 4,062,689 $ 4,070,377 $ 37,234,590 \n \n$ \n \n466 954 $ -3,371,273 $ -1,357,015 $ -4,261,334 \n \n$ \n \n240,000 \n \n$ -240 000 \n \n$ \n \n240,000 $ -240,000 \n \n$ \n \n240,000 \n \n-240 000 \n \n$ \n \n0 \n \n$ \n \n332.150 \n \n$ \n \n332 150 \n \n$ \n \n706,954 $ -3,279, 123 $ -1,357,015 $ -3,929, 184 \n \n3,272,870 \n \n4 739 584 \n \n3 370 844 \n \n11,383,298 \n \n$ 3,979,824 $ 1,460,461 $ 2,013,829 $ \n \n7454114 \n \nThe notes to the basic financial statements are an integral part of this statement. -8 - \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the gain on the sale of the land is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the land sold. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \nChange in Net Assets of Governmental Activities (Exhibit \"8\") \n \n$ -3,929,184 \n \n$ 4,307,009 -518,563 \n \n3,788,446 -43,472 \n \n-239,108 \n \n3,540,000 $ ===='3,=11=6,..,6=8=2 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2004 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n11,188 $ \n \n77,122 \n \n23,518 \n \n$ \n \n34 706 $ ==.;.77~12~2= \n \n$ \n \n77,122 \n \n$ _ _-=.34...:..i..:...;70=-:6:.... \n \n$ \n \n34 706 $ ===7::!7'=12=2= \n \nThe notes to the basic financial statements are an integral part of this statement. - 10 - \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \nDEDUCTIONS Scholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n4,679 \n \n209 \n \n$ \n \n4,888 \n \n2,500 \n \n$ \n \n2,388 \n \n32,318 \n \n$ ===34='=70=6= \n \nThe notes to the basic financial statements are an integral part of this statement. - 11 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe White County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n- 13 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds, 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. \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. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and \n- 14 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \ninterest 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. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n- 15 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe White County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on October 14, 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 White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $9,839,738 and for school bonds amounted to $297,191. \n \nTax millage rates levied for the 2003 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.8 mills _A mills \n \n14.2 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,708,447 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 16 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time 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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount $5,000 or more $5,000 or more $5,000 or more \n \nNIA 20 years up to 80 years 5 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. In addition, general obligation bonds have been \n \n- 17 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nissued to refund existing general obligation bonds. 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. \nNote 3: DEPOSITS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n- 18 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"!\" \n \nNote 3: DEPOSITS \n \nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $8,636,803. The amounts of the total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 1,462,480 \n \n2 \n \n0 \n \n3 \n \n7,174,323 \n \nTotal \n \n$ 8,636.803 \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 19 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July 1, 2003 \n \nIncreases \n \nBalances Decreases June 30, 2004 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,260,994 \n \n$ 239,108 $ 2,021,886 \n \n6,174,228 $ 3,744,654 \n \n9,047,462 \n \n871,420 \n \nTotal Capital Assets Not Being Depreciated $ 8,435,222 $ 3,744,654 $ 9,286,570 $ 2,893,306 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 24,920,768 $ 5,905,544 2,393,238 \n \n9,047,462 $ 339,983 222,372 \n \n0 $ 33,968,230 6,245,527 2,615,610 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n3,502,387 3,442,324 1,528,651 \n \n216,100 241,673 \n60,790 \n \n3,718,487 3,683,997 1,589,441 \n \nTotal Capital Assets, Being Depreciated, Net $ 24,746,188 $ 9,091,254 $ \n \n0 $ 33,837,442 \n \nGovernmental Activity Capital Assets - Net $ 33,181,410 $ 12,835.908 $ 9,286.570 $ 36,730.748 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 389,955 \n \n$ \n \n23,020 \n \n37 \n \n319 \n \n86,724 \n \n110,100 18,508 \n \nNote 6: RESTRICTED ASSETS \n \n$====5==18-,5'=\"6=\"=3 \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and property tax levied specifically for retirement ofoutstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable statutory provisions. Restricted assets at June 30, 2004, were as follows: \n \n- 20- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \n \n$ 1,533,643 $ 105,811 $ 676,541 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2004, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide \nCapital Projects \n \nGeneral Fund \n \n$==2===40=-,o==o==o \n \nTransfers are used to move unused local funding in the District-wide Capital Projects, for unrestricted local projects, back to the General fund for instructional use. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"I\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2003 2004 \n \n$ \n \n0 $ \n \n4 676 $ \n \n4 676 $ \n \n0 \n \n$ \n \n0 $ \n \n3 000 $ \n \n3 000 $ \n \n0 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $400,000 loss per occurrence, up to $1,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ \n \n50,000 \n \n$ 100,000 \n \nNote 9: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2001 General Government - Refunding - Series 2003 \n \n4.05% 2.90% \n \n$ 7,520,000 5,480,000 \n \n$ 13,000.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \n \n- 22- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 9: LONG-TERM DEBT \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2003 \n \n$ 16,540,000 \n \nDeductions Debt Retired \n \n3,540,000 \n \nBalance June 30, 2004 \n \n$ 13,000,000 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 2,240,000 \n \nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2005 2006 2007 2008 2009 2010 - 2014 \n \n$ 2,240,000 $ 2,325,000 2,420,000 2,515,000 535,000 2,965,000 \n \n456,665 371,133 282,257 189,838 93,742 220,037 \n \nTotal Principal and Interest \n \n$ 13,000,000 $ 1,613,672 \n \nNote 10: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $282,672 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $280,602 \n \n- 23 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 10: ON-BEHALF PAYMENTS \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $2,070 \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2004: \n \nProject \n \nUnearned Executed Contracts \n \nNinth Grade Academy \n \n$==2==79-,2=4==2 \n \nThe amount described in this note is not reflected in the basic financial statements. \n \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 13: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 24- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 13: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2004 2003 2002 \n \n100% 100% 100% \n \n$ 1,486,790 $ 1,444,790 $ 1,304,224 \n \n- 25 - \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30 2004 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n9,836,696 $ \n \n9,836,696 $ \n \n9,839,738 \n \n500,197 \n \n14,852,025 \n \n14,462,429 \n \n14,849,546 \n \n2,576,449 \n \n2,731,492 \n \n2,375,574 \n \n760,000 \n \n760,000 \n \n952,419 \n \n77,375 \n \n77,375 \n \n70,827 \n \n392,325 \n \n492 310 \n \n980 177 \n \n$ \n \n28 494 870 $ \n \n28,360,302 $ \n \n29,568,478 \n \n$ \n \n19,685,018 $ \n \n19,433,291 $ \n \n19,081,861 \n \n1,042,460 670,083 657,495 490,216 \n1,586,720 189,855 \n1,730,085 1,232,130 \n221,345 60,005 \n1572778 \n \n1,026,194 683,933 657,475 512,434 \n1,608,539 190,010 \n1,745,345 1,250,335 \n189,425 52,445 \n1 591 234 \n \n1,428,584 628,782 687,344 451,281 \n1,622,816 181,495 \n1,823,359 1,292,255 \n170,862 131,005 76,232 1,525,648 \n \n$ \n \n29,138,190 $ \n \n28,940,660 $ \n \n29 101 524 \n \n$ \n \n-643 320 $ \n \n-580 358 $ \n \n466 954 \n \n$ \n \n243,200 $ \n \n246,082 $ \n \n240,000 \n \n-3 200 \n \n-6 082 \n \n$ \n \n240 000 $ \n \n240 000 $ \n \n240 000 \n \n$ \n \n-403,320 $ \n \n-340,358 $ \n \n706,954 \n \n3,200,000 \n \n3,200,000 \n \n3,272,870 \n \nFund Balances - Ending \n \n$ \n \n2 796 680 $ \n \n2,859,642 $ \n \n3 979 824 \n \nNotes to the Schedule of Revenues Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n-27- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture. U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \nTotal U.S. Department of Agriculture \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Pass-Through From Ninth District Opportunity, Incorporated Head Start \nTotal Federal Financial Assistance \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n.* 10.553 10.555 \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n(2) 1,363,905 \n1,363,905 \n \n10.550 10.665 \n \nN/A N/A \n$ \n \n64,185 (3} 1428090 \n \n94.004 \n \nNIA $ \n \n5 000 \n \n84.027 84.173 \n \nNIA \n \n$ \n \nN/A \n \n$ \n \n507,741 23 392 \n531,133 \n \n84.318 84.367 84.186 84.298 84.010 84.048 \n \nN/A N/A N/A N/A N/A N/A \n$ \n \n15,252 134,732 20,419 20,109 648,155 37 457 \n1,407,257 \n \n93.600 \n \nN/A $ \n \n118 599 \n \n$==~2,,;;;;95;;;,;8:;,i;,9;;;;4;,;;;.6 \n \n- 28- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($172,425) were not maintained separately and are included in the 2004 National School Lunch Program. \n(3) Funds earned on the National Forest Reserve Funds, in the amount of $19,789, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \n \n$ \n \n199,192 \n \n$ \n \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 Alternative Program Remedial 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 4-8 After School Program Health Insurance K-3 Statewide Reading Program Mentor Teachers National Teacher Certification Pay for Performance Preschool Handicapped Program Special Education Low Incidence Grant Student Information Systems \n \n961,198 133,807 2,213,664 204,252 1,008,825 254,111 1,959,605 1,486,183 563,853 \n136,484 35,042 \n1,257,159 344,920 40,325 407,175 147,186 27,170 309,629 97,121 62,935 \n433,945 628,036 901,817 \n504,965 119,393 \n19,500 85,317 14,008 27,023 129,558 96,680 83,871 -775,726 \n23,599 280,602 \n49,951 1,850 \n21,777 63,124 47,356 \n6,424 61,506 \n \nTOTAL \n199,192 \n961,198 133,807 2,213,664 204,252 1,008,825 254,111 1,959,605 1,486,183 563,853 \n136,484 35,042 \n1,257,159 344,920 40,325 407,175 147,186 27,170 309,629 97,121 62,935 \n433,945 628,036 901,817 \n504,965 119,393 \n19,500 85,317 14,008 27,023 129,558 96,680 83,871 -775,726 \n23,599 280,602 \n49,951 1,850 \n21,777 63,124 47,356 \n6,424 61,506 \n \n- 30- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Community Health, Georgia Department of Mammography Program \nHuman Resources, Georgia Department of Family Connection \nOTHER Natural Resources, Georgia Department of Nature Trail \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n266,551 $ \n \n266,551 \n \n$ \n \n2,070 \n \n2,070 \n \n23,964 84,500 \n \n23,964 84,500 \n \n64600 \n \n64 600 \n \n$ 14,849,546 $ \n \n266,551 $ ====15=1=1=61=0=97= \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2004 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nPayments of principal and interest on the 1993 Bonds from February 1, 1999 to August 1, 2003 \n \n$ 3,160,000 $ 2,756,405 $ \n \n99,047 $ \n \n2,657,358 Completed \n \nAcquisition, construction and equipping of a new elementary school and necessary furnishings and equipment, including the acquisition of all necessary real or personal property and equipment, including computers and related technology, adding to, renovating, repairing, improving and equipping existing educational buildings, properties and facilities of the School District and expenses incident thereto \n \n14,040,000 \n \n12,462,152 \n \n97,778 \n \n12,364,374 Completed \n \nAcquisition, construction and equipping one new elementary school; adding to, renovating, repairing, improving and equipping existing school buildings; acquiring computers and computer technology equipment for the school system, and acquisition of land for additional schools \n \n16,750,000 \n \n20,663,324 \n \n4,376,473 \n \n3,521,878 Ongoing \n \nPaying a portion of the principal and interest due on the White County School District's Series 1993 General Obligation Bonds from August 1, 2003 through and including February 1, 2008 \n \n2,250,000 \n \n2,250,000 \n \n79460 \n \nOngoing \n \n$ 36,200,000 $ 38,131,881 $ 4,652,758 $ 18,543,610 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n(4) During fiscal year 2003, the White County Board of Education issued General Obligation Refunding Bond Issue 2003 to refund portions of the 1993 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n- 32- \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategoryV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \n1,155,313 $ 189,932 \n2,662,225 325,166 \n1,237,314 \n \n1,143,152 $ 123,575 \n2,678,870 295,932 \n1,665,111 \n \n318,977 2,402,258 1,813,503 \n696,262 2,204,532 \n504,347 36,513 \n180 438 \n \n245,933 2,498,829 2,327,956 \n555,128 \n139,784 322,720 1,499,216 355,810 \n2,183 782,307 128,267 102,686 \n \n148,565 $ 7,161 \n200,008 6,619 \n121,924 \n153,741 96,866 81,064 \n146 1,998 19,187 2,903 \n7,231 \n15,690 \n \n1,291,717 130,736 \n2,878,878 302,551 \n1,787,035 \n245,933 2,652,570 2,424,822 \n636,192 \n139,930 324,718 1,518,403 358,713 \n2,183 789,538 128,267 118,376 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n13,726,780 $ 14,867,459 $ \n \n863,103 $ \n \n15,730,562 \n \nMedia Center Program Staff and Professional Development \n \n378,376 77176 \n \n493,603 16,295 \n \n121,218 47 954 \n \n614,821 64249 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n14,182,332 $ 15,377,357 $ \n \n1,032,275 $ ===1,;;_6,.;,40=9;,.;,6=3=2 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 33- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 15, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2004, which collectively comprise White County Board ofEducation's basic financial statements and have issued our report thereon dated March 15, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted 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 White County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7541-04-01. \n \n2004YB-30 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nThis report is intended solely for the information and use of the management and members of the White County Board ofEducation and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2004YB-30 \n \nState Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 15, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWhite County Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2004. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements. \n2004SA-10 \n \n In our opinion, the White County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2004. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~~m~.~-t \nRussell W. Hinton State Auditor \nRWH:as 2004SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-03-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Finding Control Number: FS-7541-03-01 \n \nManagement has implemented changes at the various principal account sites for accounting functions. Bank statements are reconciled by the Finance Director. Bookkeepers receipt cash and the cash is deposited at the bank by another employee. Controls have been established and implemented to ensure that athletic tickets sold are reconciled with cash collections. The Finance Director reviews all checks written at each of the schools and reports such to the principals and Superintendent on a quarterly basis. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7541-03-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH MANAGEMENT Excessive Cash Balances Finding Control Number: FA-7541-03-01 \n \nThe fiscal year 2003 audit was done in August 2004 after the close of fiscal year 2004. Therefore, this deficiency continued to exist in fiscal year 2004. Procedures were implemented during the audit to correct the deficiency eliminating excessive ending monthly cash balances in the Title I - Grants to Local Educational Agencies (CFDA 84.010) and Special Education Cluster (CFDA 84.027 and 84.173) programs. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the White County Board of Education disclosed a financial statement reportable condition related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nThe reportable condition described above is not considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the White County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .5 IO(a) of 0MB Circular A-133 The White County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n \n9. Low Risk Auditee The White County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Repeated From Prior Year Finding Control Number: FS-7541-04-01 \nOur examination of the Principal's accounts disclosed weaknesses in internal controls as discussed below: \nCash and Cash Equivalents The bank reconciliation function was not separated from the record keeping and voucher payment function. \nRevenues/Receivables/Receipts Deposit preparation was not separated from the record keeping and cash custody functions. Pre-numbered tickets for athletic events are not issued so that cash collections can be reconciled to monies taken in. \nExpenditures/Liabilities/Disbursements The check writing function was not separated from record keeping or processing of signed checks. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal's account sites, for accounting functions. Management should implement procedures to ensure that the key accounting functions ofcustody, record keeping and authorization be segregated. Additionally, controls should be established and implemented to ensure that reconciliations of athletic event tickets sold are reconciled with cash collections. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCASH MANAGEMENT Excessive Cash Balances Reportable Condition Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7541-04-01 \nA review of cash management procedures for the Title 1 - Grants to Local Educational Agencies (CFDA 84.010) and Special Education Cluster (CFDA 84.027, 84.173) programs disclosed that cash \n-2- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CASH MANAGEMENT Excessive Cash Balances Reportable Condition Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7541-04-01 draws were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 2004, the programs had an average cash balance of $70,407 and $88,430, respectively, and had excessive ending monthly cash balances in nine and twelve months, respectively. The excessive cash balances are a result ofmanagement's failure to accurately forecast the cash needs ofthese programs. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds by the School District. \n-3- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 \nFinding Control Number: FS-7541-04-01 \nWe concur with this finding. The Board has created and hired the position of Staff Accountant to assure that there is separation of those who perform monthly bank reconciliation and recordkeeping/voucher payment functions. Pre-numbered tickets for athletic events are being issued so that cash collections can be reconciled to monies taken in. \nFinding Control Number: FA-7541-04-01 \nWe concur with this finding. The Accounts Payable clerk has implemented procedures to assure that the amount ofFederal funds requested for reimbursement from the Georgia Department ofEducation is closely aligned with the actual program expenditures. Prior to requesting the funds, the Finance Director will monitor the requested amount to assure that it is in line with the Board's actual cash needs. These changes were implemented in August 2004 after the fiscal year 2003 audit during August 2004. \nContact Person: Tom McLean, Finance Director Phone: (706) 865-2315 Fax Number: (706) 865-7784 E-mail Address: tmclean@white.k12.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2002-h2003","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"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.","Report year covers fiscal year.","Has supplements: White County Board of Education, Cleveland, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (White County Board of Education, Ga), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (White County Board of Education, Ga.), fiscal year ended June 30, 2008-","Fiscal year ended June 30, 2000, released in 2001; title from cover.","Fiscal year ended June 30, 2008, released in 2009."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","White County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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":null,"fulltext":"WHITE COUNTY BOARD OF EDUCATION \nCLEVELAND, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \n3 4 6 7 8 9 10 11 13 \n31 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n32 \n \n3 SCHEDULE OF STATE REVENUE \n \n34 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n35 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n37 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nAugust 17, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2003, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the White County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education, as of June 30, 2003, and the respective changes in financial position thereoffor the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2003-34ARL-11 \n \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 and consolidated its individual school activity accounts for inclusion in the basic financial statements. These changes are in accordance with generally accepted accounting principles. \nAs described in Note 2, the White County Board of Education has implemented a new financial reporting model as required by provisions ofGovernmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2003. \nIn accordance with Government Auditing Standards, we have also issued our report dated August 17, 2004, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \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 31 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the White County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated section 506-24. \nectfttlly s u b n r i ~ ~ ~ \n \nRWH:gp 2003-34ARL-11 \n \nState Auditor \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nINTRODUCTION \nOur discussion and analysis of the White County School District'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. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2003 are as follows: \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. \n On the district-wide financial statements, the assets of the School District exceeded liabilities by $28 million. Of this amount, $2 million is unrestricted and is available for spending at the School District's discretion. \n The School District had $30.2 million in expenses relating to governmental activities; only $20 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $13.9 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $13.9 million or 41 % of all revenues totaling $33.8 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the district-wide and fund financial statements. \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. \n1 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the White County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \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. \nDistrict-wide Statements \nThe district-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the district-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \nThe Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities. \nFund Financial Statements \nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \n11 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nGovernmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. Fiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the district-wide financial statements because it cannot use these assets to finance its operations. Financial Analysis of the School District as a Whole Recall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for 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. \n111 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nTable 1 Net Assets \n \nGovernmental Activities Fiscal Year 2003 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$15,010,586 33,181,410 \n \nTotal Assets \n \n$48,191,996 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 3,577,609 16,540,000 \n \nTotal Liabilities \n \n$20,117,609 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$21,766,520 4,358,804 1,949,063 \n \nTotal Net Assets \n \n$28,074,387 \n \nTable 2 shows the Changes in Net Assets for this fiscal year. Since this is the first year the School District has prepared financial statements following GASB Statement 34, revenue and expense comparisons to fiscal year 2002 are not available. \n \nIV \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nTable2 Change in Net Assets \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Service Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions Investment Earnings Miscellaneous \nTotal General Revenues \nTotal Revenues \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations ofNon-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \nV \n \nGovernmental Activities Fiscal Year 2003 \n$ 838,594 16,730,193 2,399.262 \n$19,968,049 \n$ 8,952,697 290,032 \n2,311,034 210,411 452,736 76,344 196,869 351,798 \n1,044.756 \n$13,886,677 \n$33,854.726 \n$19,392,116 \n1,042,641 720,890 657,891 385,897 \n1,618,026 196,493 \n1,832,660 1,251,955 \n161,370 190,055 \n97,365 1,559,414 1,100,123 \n$30.206.896 \n$ 3,647,830 \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nGovernmental Activities \n \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 to fiscal year 2002 are not available. \n \nTable 3 Governmental Activities \n \nTotal Cost of Services Fiscal Year 2003 \n \nNet Cost of Services Fiscal Year 2003 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$19,392,116 $ 5,211,647 \n \n1,042,641 720,890 657,891 385,897 \n1,618,026 196,493 \n1,832,660 1,251,955 \n161,370 190,055 \n \n650,777 486,568 348,311 337,691 1,068,185 193,663 929,958 114,501 -265,296 143,946 \n \n97,365 1,559,414 1,100,123 \n \n-2,841 -78,386 1,100,123 \n \nTotal Expenses \n \n$30!206!896 $10!238!847 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \n \nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $40.2 million and total expenditures and other financing uses of $44.5 million. \n \nVl \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nGeneral Fund Budgeting Highlights \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 2003, the School District amended its general fund budget as needed. \nFor the General Fund, the final actual revenues and other financing sources of $28.3 million exceeded the original budgeted amounts of $28.0 million by $0.3 million. This difference (final actual vs. original budget) was not taking out the tax commissioner collection fee of 2% or $183.3k, underestimating intangible taxes by $200k, and DOE's notification of an austerity reduction of $343.8k after the budget had been submitted. \nThe actual revenues of $28.3 million exceeded the final budgeted amounts by $1.08 million. This difference is due primarily to the $700k in school activity budgets not budgeted and from the discussion above. \nThe final actual expenditures of $28.2 million exceeded the original budgeted amount of $27.9 million by $0.3 million. School activity accounts were not included in the original budget. This accounts for the largest part of the expenditure difference. \nThe final actual expenditures of $28.2 million exceeded the final budgeted amount of $27.7 million by $0.5 million. School activity accounts were not included in the final budget. This accounts for the largest part of the expenditure difference. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2003, the School District had $33.2 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category and accumulated depreciation. Since this is the first year the School District has prepared financial statements following GASB Statement 34, capital assets comparisons to fiscal year 2002 are not available. \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities Fiscal Year 2003 \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \n \n$ 2,260,994 6,174,228 \n21,418,381 2,463,220 864,587 \n \nTotal \n \n$33,181,410 \n \nDue to the ongoing growth in the county, the School District has construction projects including new buildings, additions and renovations. \n \nDebt \n \nAt fiscal year ended June 30, 2003, the School District had $16.5 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \n \nTable 5 Debt at June 30 \n \nGovernmental Activities Fiscal Year 2003 \n \nBonds Payable \n \n$16,540.000 \n \nCurrent Issues \n \nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \n \n Economic Slowdown - State funding for education has been stagnant and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite \n \nvm \n \n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003  these challenges, the White County 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.  Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. Contacting 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 Mr. Tom McLean, Finance Director at White County School District, 113 North Brooks Street, Cleveland, GA 30528. Mailing address is same as above. You may also email your question to Mr. McLean @ tmclean@white.k12.ga.us. \nIX \n \n WHITE COUNTY BOARD OF EDUCATION \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2003 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Un restricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n8,359,760 \n \n3,753,942 \n \n765,918 1,891,452 \n8,855 193,604 \n37,055 \n \n2,260,994 6,174,228 2,393,238 24,920,768 5,905,544 -8 473 362 \n \n$ ===4=8;,;,1;,;;9;,;,,1,.;;;9;;;,;96;;., \n \n$ \n \n669,957 \n \n2,350,174 \n \n477,320 \n \n80,158 \n \n3,540,000 13,000,000 \n \n$ \n \n20,117,609 \n \n$ \n \n21,766,520 \n \n396,443 3,420,523 \n541,838 1949063 \n \n$ \n \n28,074,387 \n \n$ ===4=8;,;,1;,;;9;,;,,1.;;;,9=96;;,, \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30. 2003 \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \n \n$ \n \n19,392,116 $ \n \n1.042,641 720,890 657,891 385,897 \n1,618,026 196,493 \n1,832,660 1,251,955 \n161,370 190,055 \n \n97,365 1,559,414 1,100,123 \n \n30,206,896 $ \n \n5,934 \n100,206 732,454 838,594 \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \nTotal General Revenues \n \nChange in Net Assets \n \nNet Assets - Beginning of Year \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n12,359,481 $ \n \n391,864 234,322 309,580 46,764 549,841 \n2,830 898,072 669,952 426,666 \n46,109 \n \n794,712 \n \n$ \n \n16,730,193 $ \n \n1,815,054 $ \n1,442 4,630 467,502 \n110,634 2,399,262 $ \n \n-5,211,647 \n-650,777 -486,568 -348,311 -337,691 -1,068,185 -193,663 -929,958 -114,501 265,296 -143,946 \n2,841 78,386 -1, 100,123 \n-10,238,847 \n \n$ \n \n8,952,697 \n \n290,032 \n \n2,311,034 210,411 452,736 76,344 196,869 351,798 \n1044756 \n \n$ \n \n13,886,677 \n \n$ \n \n3,647,830 \n \n24,426,557 \n \n$ ======28=,0=7=4'=38..,7= \n \n-5- \n \n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2003 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 4,119,375 $ 3,462,813 $ 777,572 $ 8,359,760 \n \n1,600,000 \n \n2,153,942 \n \n3,753,942 \n \n276,909 1,891,452 \n8,855 39,513 37,055 \n \n154,091 \n \n439,330 \n \n716,239 1,891,452 \n8,855 193,604 \n37,055 \n \n$ 6,373,159 $ 5,216,904 $ 3,370,844 $ 14,960,907 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ 669,957 2,350,174 $ 80,158 \n$ 3,100,289 $ \n \n477,320 477,320 \n \n$ 669,957 2,350,174 477,320 80,158 \n$ 3,577,609 \n \n$ 359,388 \n \n$ \n \n359,388 \n \n$ 3,370,844 \n \n3,370,844 \n \n37,055 \n \n37,055 \n \n$ 3,802,879 \n \n3,802,879 \n \n2,876,427 \n \n936,705 \n \n2,876,427 936,705 \n \n$ 3,272,870 $ 4,739,584 $ 3,370,844 $ 11,383,298 \n \n$ 6,373,159 $ 5,216,904 $ 3,370,844 $ 14,960,907 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30. 2003 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \n \n$ 11,383,298 \n \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \n \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \n \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \n \n$ \n \n2,260,994 \n \n6,174,228 \n \n2,393,238 \n \n24,920,768 \n \n5,905,544 \n \n-8,473,362 \n \n33,181.410 \n \nSome of the School District's property tax revenues will be collected after year end but are not available soon enough to pay for the current period's expenditures. \n \n49,679 \n \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \n \nBonds Payable \n \n-16,540,000 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 28,074,387 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2003 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Refunding Bonds - Par Value Payment to Bond Refunding Escrow Agent Refunding Bond Issuance Cost Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 8,957,400 509,043 $ \n14,903,293 2,023,769 738,388 72,642 1,144,152 \n \n$ \n210,411 2,399,262 \n249,046 \n \n290,806 $ 9,248,206 \n \n2,331,071 \n \n3,050,525 \n \n17,302,555 \n \n2,023,769 \n \n738,388 \n \n30,110 \n \n351,798 \n \n809 \n \n1 z 144,961 \n \n$ 28,348,687 $ 2,858,719 $ 2,652,796 $ 33,860,202 \n \n$ 18,492,291 \n \n$ 18,492,291 \n \n1,042,641 733,490 657,891 385,113 \n1,623,162 184,671 \n1,847,012 1,226,186 \n161,370 190,055 \n97,365 1,527,802 \n$ \n \n$ \n6,690,703 \n \n11,822 \n \n1,042,641 733,490 657,891 385,113 \n1,623,162 196,493 \n1,847,012 1,226,186 \n161,370 190,055 \n97,365 1,527,802 6,690,703 \n \n2,495,000 775,123 \n \n2,495,000 775,123 \n \n$ 28,169,049 $ 6,690,703 $ 3,281,945 $ 38,141,697 \n \n$ 179,638 $ -3,831,984 $ -629,149 $ -4,281,495 \n \n$ 5,540,000 $ 5,540,000 \n \n-5,448,373 \n \n-5,448,373 \n \n-91,627 \n \n-91,627 \n \n$ 432,589 \n \n373,815 \n \n806,404 \n \n$ -432,589 \n \n-373,815 \n \n-806,404 \n \n$ -432,589 $ \n \n58 774 $ 373,815 $ \n \n0 \n \n$ -252,951 $ -3,773,210 $ -255,334 $ -4,281,495 \n \n3,525,821 \n \n8,512,794 \n \n3,626,178 \n \n15,664,793 \n \nFund Balances - Ending \n \n$ 3,272,870 $ 4,739,584 $ 3,370,844 $ 11,383,298 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2003 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period. these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \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. \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: \nRefunding Bonds issued \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ -4,281,495 \n \n$ \n \n6,222,396 \n \n-457 595 \n \n5,764,801 -5,476 \n \n-5,540,000 \n \n7,710,000 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ =====3==,6=4=7'=8=30= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2003 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n8,809 $ \n \n62,049 \n \n23,509 \n \n$ \n \n32,318 $ ==~62;;,!,,~04,;,,;;9;,,, \n \n$ \n \n62,049 \n \n$ _ _.::;32=-=-31.:...:8:.... \n \n$ \n \n32,318 $ ===62=,04===9= \n \nThe notes to the basic financial statements are an integral part of this statement. -10- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nREVENUES Contributions Donors Investment Earnings Interest Total Additions \nEXPENSES Scholarships Administrative Expenses Total Deductions Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n2,548 \n \n$ \n \n615 \n \n$ \n \n3163 \n \n$ \n \n2,500 \n \n660 \n \n$ \n \n3,160 \n \n$ \n \n3 \n \n32,315 \n \n$ ===32='=31=8= \n \nThe notes to the basic financial statements are an integral part of this statement. - 11 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30. 2003 \n \nEXHIBIT\"!\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe White County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 13 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and 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. \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. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal is to be invested and preserved intact with the resultant income to be used to provide awards or scholarships. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \n \n- 14 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"!\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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. \nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2002 and ending in early June 2003. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2002 and ending in August 2003. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit costs and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \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 $390,129 at July 1, 2002. For fiscal year 2003, these funds have been reported as part of the General Fund. The financial activities of the School District's Expendable Trust Funds in prior years were reported as Fiduciary Funds. These funds had a combined fund balance of$2,271 at July 1, 2002. For fiscal year 2003, these funds have been reported as part ofthe 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 of the various school activity accounts had a fund balance of $134,934 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \n \n- 15 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGeneral Fund Balance July 1, 2002 \n \n$ 2,998,487 \n \nAdd Funds Consolidated with General Fund: School Food Services Fund Expendable Trust Funds School Activity Account - Governmental Activity \n \n390,129 2,271 \n134 934 \n \nGeneral Fund Balance July 1, 2002 (Restated) \n \n$ 3,525,821 \n \nCHANGES IN ACCOUNTING PRINCIPLES \n \nThe White County Board ofEducation has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2003. \n \nThe provisions of GASB Statement No. 34 require the inclusion of a Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \n \nGeneral Fund (Restated) July 1, 2002 Capital Projects Fund Debt Service Fund \n \n$ 3,525,821 8,512,794 3,626,178 \n \nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds Payable \n \n$ 15,664,793 35,432,376 -8,015,767 55,156 -18, 710,000 \n \nNet Assets Beginning (See Exhibit \"B\") \n \n$ 24,426,558 \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \n \n- 16 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \n- 17 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe White County Board of Commissioners 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 White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2003, for maintenance and operations amounted to $8,957,400 and for school bonds amounted to $290,806. \n \nTax millage rates levied for the 2002 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.415 mills .450 mills \n \n14.865 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,521,445 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the 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. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated \n \n- 18 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \ncapital assets are recorded at fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAny Amount $5,000 or more $5,000 or more $5,000 or more \n \nNIA 20 years Up to 80 years 5 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \n \n- 19 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $10,836,148. The amounts ofthe total bank balances are classified into three categories of credit risk: \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \n \n- 20- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"!\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 1,000,067 \n \n2 \n \n1,500,000 \n \n3 \n \n8,336,081 \n \nTotal \n \n$ 10.836.148 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \nAt June 30, 2003, the carrying value ofthe School District's total investments was $2,153,942 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \nType of Investment \n \nCarrying Amount \n \nFair Value \n \nLocal Government Investment Pools \nMutual Funds - Money Market Account \n \n$ 1,998,861 $ 1,998,861 \n \n155,081 \n \n155,081 \n \nTotal Investments \n \n$ 2,153.942 $ 2,153.942 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nregistered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2003, was 30 days. The average investment duration for Fund 6 on June 30, 2003, was 0.39 years. \nNote 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNote 5: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 22 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30. 2003 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July 1, 2002 \n \nIncreases \n \nBalances Decreases June 30, 2003 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,260,994 \n \n$ \n \n329,999 $ 5,844,229 \n \n0 $ 2,260,994 6,174,228 \n \nTotal Capital Assets Not Being Depreciated $ 2,590,993 $ 5,844,229 $ \n \n0 $ 8,435,222 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 24,914,000 $ 5,544,245 2,383,138 \n \n6,768 $ 361,299 \n10,100 \n \n0 $ 24,920,768 5,905,544 2,393,238 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n3,347,860 3,198,834 1,469,073 \n \n154,527 243,490 \n59,578 \n \n3,502,387 3,442,324 1,528,651 \n \nTotal Capital Assets, Being Depreciated, Net $ 24,825,616 $ \n \n-79,428 $ \n \n0 $ 24,746,188 \n \nGovernmental Activity Capital Assets - Net $ 27,416.609 $ 5,764.801 $ \n \n0 $ 33,181,410 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 346,173 \n \n$ \n \n275 \n \n883 \n \n89,164 \n \n90,322 21.100 \n \n$.======4=57y-~59~5 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and property tax levied specifically for retirement ofoutstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2003, were as follows: \n \n- 23 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects Bond Proceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ \n$ 2,526,108 \n \n777,572 \n \n$ 2,153,942 $ 1,600,000 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2003, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nDistrict-wide \n \nGeneral \n \nCapital \n \nFund \n \nProjects \n \nDistrict-wide Capital Projects Debt Service Funds \n \n$ 432,589 $_ _3_7~3,_81_5 \n \nTotal \n \n$ 432.589 $=======37==3==,8===1==5 \n \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 SPLOST proceeds to Debt Service Fund for payment ofbond interest. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to \n \n- 24- \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 8: RISK MANAGEMENT \n \nadminister one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2002 2003 \n \n$ \n \n0 $ \n \n0 $ \n \n0 $ \n \n0 \n \n$ \n \n0 $ \n \n4 676 $ \n \n4 676 $ \n \n0 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of$350,000 loss per occurrence, up to $1,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \nSuperintendent Employee Blanket Bond \n \nAmount \n \n$ \n \n50,000 \n \n$ 100,000 \n \nNote 9: LONG-TERM DEBT \nADVANCE REFUNDING During fiscal year 2003, the White County Board of Education issued $5,540,000 in General Obligation Refunding Bonds to advance refund $5,215,000 ofoutstanding bonds. The bond issue of $5,540,000 less underwriters and bond issue cost of $91,627 provided net proceeds of $5,448,373. \n \n- 25 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 9: LONG-TERM DEBT \n \nThe total net proceeds of$5,448,373 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on the 1993 Bond issue. As a result, the 1993 Series Bonds are considered defeased, and the liability for these bonds has been removed from the District-wide Statement ofNet Assets. The White County Board ofEducation refunded the aforementioned bonds to reduce its total Debt Service payments over 10 years beginning subsequent to fiscal year 2004 by $398,339 and to obtain an economic gain (difference between the present values oftotal debt service payments and the old and new debt) of $419,575. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1997 General Government - Series 2001 General Government - Refunding - Series 2003 \n \n3.80% - 4.30% 4.05% 2.90% \n \n$ 1,770,000 9,230,000 5,540,000 \n \n$ 16,540.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2002 \n \n$ 18,710,000 \n \nAdditions G.O. Bonds \n \n5,540,000 \n \nDeductions Debt Retired \n \n-7,710,000 \n \nBalance June 30, 2003 \n \n$ 16,540,000 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 3,540,000 \n \n-26 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"I\" \n \nNote 9: LONG-TERM DEBT \n \nAt June 30, 2003, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2004 2005 2006 2007 2008 2009 - 2013 2014 - 2017 \n \n$ 3,540,000 $ 2,240,000 2,325,000 2,420,000 2,515,000 2,870,000 630,000 \n \n529,264 456,665 371,133 282,258 149,838 304,645 \n9135 \n \nTotal Principal and Interest \n \n$ 16,540,000 $ 2,102,938 \n \nNote 10: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and costs in the amount of $306,583 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $269,413 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $37,170 \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2003, together with funding available: \n \n- 27 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"!\" \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nMount Yonah Elementary School White County Intermediate School Additions \n \n$ 1,916,119 $ 398,215 \n \n266,551 \n \n$ 223142334 $ 2662551 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 13: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \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 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: \n \n- 28 - \n \n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"!\" \n \nNote 13: RETIREMENT PLANS \nFiscal Year \n2003 2002 2001 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 1,444,790 $ 1,304,224 $ 1,429,726 \n \n-29- \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n9,164,815 $ \n \n9,164,815 $ \n \n8,957,400 \n \n323,000 \n \n323,000 \n \n509,043 \n \n15,284,103 \n \n14,551,173 \n \n14,903,293 \n \n2,087,120 \n \n2,087,314 \n \n2,023,769 \n \n698,435 \n \n698,435 \n \n738,388 \n \n85,375 \n \n85,375 \n \n72,642 \n \n400 486 \n \n355 371 \n \n1 144 152 \n \n$ \n \n28,043,334 $ \n \n27,265,483 $ \n \n28,348,687 \n \n$ \n \n18,631,406 $ \n \n18,468,557 $ \n \n18,492,291 \n \n775,226 872,593 670,707 446,846 1,647,856 192,480 1,767,136 1,134,413 183,445 \n38,055 \n1,535,021 \n \n763,180 834,162 659,643 445,205 1,604,409 191,675 1,819,941 1,200,025 185,730 \n48,552 \n1,524,451 \n \n1,042,641 733,490 657,891 385,113 \n1,623,162 184,671 \n1,847,012 1,226,186 \n161,370 190,055 \n97,365 1,527,802 \n \n$ \n \n27,895,184 $ \n \n27,745,530 $ \n \n28,169,049 \n \n$ \n \n148 150 $ \n \n-480 047 $ \n \n179 638 \n \n$ \n \n80,000 $ \n \n72,378 \n \n-500,000 \n \n-500,000 $ \n \n-432,589 \n \n$ \n \n-420,000 $ \n \n-427,622 $ \n \n-432,589 \n \n$ \n \n-271,850 $ \n \n-907,669 $ \n \n-252,951 \n \n3,860,733 \n \n3,987,983 \n \n3,525,821 \n \n582,433 \n \nFund Balances - Ending \n \n$ \n \n3,588,883 $ \n \n3,662,747 $===3,=27=2\"'=,8=70= \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture. U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Delinquent Program Grants to Local Educational Agencies School Improvement Title II Enhancing Education Through Technology Improving Teacher Quality Title IV Safe and Drug-Free Schools and Communities TitleV Innovative Education Program Strategies Vocational Education - Basic Grants to States High School Program Basic Grant \nTotal U.S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nNIA \n \nN/A \n \n$ \n \n$ \n \n(2) 1,458,895 \n1,458,895 \n \n10.550 10.665 \n \nN/A NIA \n$ \n \n68,907 19 554 1547356 \n \n* 84.027 * 84.027 * 84.173 \n \nNIA \n \n$ \n \nN/A \n \nNIA \n \n$ \n \n15,682 360,695 \n27 600 \n403,977 \n \n* 84.010 84.010 \n* 84.010 \n84.318 84.367 \n84.186 \n84.298 \n84.048 \n \nN/A N/A NIA N/A NIA N/A N/A \nNIA \n$ \n \n62,317 501,117 \n14,978 16,242 123,240 21,470 19,640 \n38682 1 201 663 \n \n- 32- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services. U. S. Department of Pass-Through From Ninth District Opportunity. Incorporated Head Start \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.600 \n \nN/A \n \n$ _ _ _....:.;10~4:....:9:..::3~1 \n \nTotal Federal Financial Assistance N/A = Not Available \n \n$ =====2'1=8=53:!,,9=5=0 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($482.978) were not maintained separately and are included in the 2003 National School Lunch Program. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 33- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \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 Grades (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 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 Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teachers National Teacher Certification Post Secondary Options Preschool Handicapped Program Statewide Local Education Improvement Student Information System Upgrade Lottery Programs Computers in the Classroom \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nOTHER Natural Resources, Georgia Department of Nature Trail \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n810,614 \n \n292,356 \n \n1,898,222 \n \n632,826 \n \n996,818 \n \n292,590 \n \n1,934,007 \n \n1,424,073 \n \n583,917 \n \n130,265 153,942 1,045,748 284,250 \n5,841 416,851 \n38,036 303,412 101,053 \n62,488 \n \n419,357 616,279 892,410 \n \n529,794 121,533 \n19,000 84,225 14,341 25,157 196,869 96,170 156,613 -400,771 \n145,950 33,250 26,034 1,000 \n269,413 3,818 9,531 8,356 \n47,356 37,582 17,030 \n82,117 \n \n$ \n \n810,614 \n \n292,356 \n \n1,898,222 \n \n632,826 \n \n996,818 \n \n292,590 \n \n1,934,007 \n \n1,424,073 \n \n583,917 \n \n130,265 153,942 1,045,748 284,250 \n5,841 416,851 \n38,036 303,412 101,053 \n62,488 \n \n419,357 616,279 892,410 \n \n529,794 121,533 \n19,000 84,225 14,341 25,157 196,869 96,170 156,613 -400,771 \n145,950 33,250 26,034 1,000 \n269,413 3,818 9,531 8,356 \n47,356 37,582 17,030 \n82,117 \n \n$ 37,170 \n \n2,399,262 \n \n2,399,262 37,170 \n \n6400 \n \n6400 \n \nSee notes to the basic financial statements. \n \n$ \n \n14,9031293 $ \n \n2,399,262 $ \n \n17,302,555 \n \n- 34- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"4\" \n \nPROJECT \nPayments of principal and interest on the 1993 Bonds from February 1, 1999 to August 1, 2003. \nAcquisition, construction and equipping of a new elementary school and necessary furnishings and equipment, including the acquisition of all necessary real or personal property and equipment, including computers and related technology, adding to, renovating, repairing, improving and equipping existing educational buildings, properties and facilities of the School District and expenses incident thereto. \nAcquisition, construction and equipping one new elementary school; adding to, renovating, repairing, improving and equipping existing school buildings; acquiring computers and computer technology equipment for the school system and acquisition of land for additional schools. \nPaying a portion of the principal and interest due on the White County School District's Series 1993 General Obligation Bonds from August 1, 2003 through and including February 1, 2008. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 3,160,000 $ 3,160,000 $ \n \n625,049 $ \n \n2,032,309 Ongoing \n \n14,040,000 \n \n12,500,000 \n \n121,260 \n \n12,243,114 Ongoing \n \n16,750,000 \n \n16,750,000 \n \n2,941,911 \n \n579,967 Ongoing \n \n2,250,000 \n \n2,250,000 \n \nOngoing \n \n$ 36,200,000 $ 34,660,000 $ \n \n3,688,220 $ 14,855,390 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n(4) During fiscal year 2003, the White County Board of Education issued General Obligation Refunding Bond Issue 2003 to refund portions of the 1993 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n- 35- \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE} \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n969,230 $ 1,025,016 $ \n \n19,034 $ \n \n1,044,050 \n \n333,684 \n \n289,054 \n \n2,783 \n \n291,837 \n \n2,241,442 \n \n2,193,471 \n \n61,349 \n \n2,254,820 \n \n751,210 \n \n654,409 \n \n3,842 \n \n658,251 \n \n1,197,614 \n \n1,538,119 \n \n48,238 \n \n1,586,357 \n \n348,826 2,297,827 1,685,518 \n699,765 1,943,617 \n512,842 53,730 \n172,902 \n \n259,590 2,512,627 2,352,145 \n520,353 \n140,461 299,956 1,427,477 358,088 \n5,463 756,325 \n27,371 126,941 \n \n187,738 165,511 \n80,922 \n1,027 5,237 24,570 4,773 \n10,574 624 \n19,901 \n \n259,590 2,700,365 2,517,656 \n601,275 \n141,488 305,193 1,452,047 362,861 \n5,463 766,899 \n27,995 146,842 \n \n$ \n \n13,208,207 $ 14,486,866 $ \n \n636,123 $ \n \n15,122,989 \n \n361,631 75,223 \n \n472,446 13,076 \n \n122,193 113,309 \n \n594,639 126,385 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n13,645,061 $ 14,972,388 $ \n \n871,625 $ =====15='=84=4=,0=1=3 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 37 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nAugust 17, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members ofthe State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2003, which collectively comprise White County Board ofEducation's basic financial statements and have issued our report thereon dated August 17, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. \nCompliance \nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2003-34YB-30 \n \n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect White County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7541-03-01. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nspectfully submitted, \nw.~ \nRWH:gp 2003-34YB-30 \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nAugust 17, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWhite County Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2003. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements. \n2003SA-30 \n \n In our opinion, the White County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2003. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nWe noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the White County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7541-03-01. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully s u b m i ~ ~ \n \nRWH:gp 2003SA-30 \n \nState Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-01-01 FS-7541-02-01 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the White County Board of Education disclosed a financial statement reportable condition related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nThe reportable condition described above is not considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the White County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement. \n \nCash Management \n \nThe reportable condition described above is not considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The White County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \n \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nI SUMMARY OF AUDITOR'S RESULTS \n7. Major Programs Federal awards audited as major programs are as follows: 84.027 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 84.010 Elementary and Secondary Education Act - Title I - Delinquent 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 \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n9. Low Risk Auditee The White County Board ofEducation qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-7541-03-01 \nOur examination of the Principal's accounts disclosed weaknesses in internal controls as discussed below: \nCash and Cash Equivalents The bank reconciliation function was not separated from the record keeping and voucher payment function. \nRevenues/Receivables/Receipts Deposit preparation was not separated from the record keeping and cash custody functions. Pre-numbered tickets for athletic events are not issued so that cash collections can be reconciled to monies taken in. \n-2- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-7541-03-01 \nExpenditures/Liabilities/Disbursements The check writing function was not separated from record keeping or processing of signed checks. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal's account sites, for accounting functions. Management should implement procedures to ensure that the key accounting functions ofcustody, record keeping and authorization be segregated. Additionally, controls should be established and implemented to ensure that athletic event tickets sold are reconciled with cash collections. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7541-03-01 \nA review of cash management procedures for the Title I - Grants to Local Educational Agencies (CFDA 84.010) and Special Education Cluster (CFDA 84.027, 84.173)programsdisclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 2003, the programs had an average cash balance of $36,805 and $45,876, respectively, and had excessive ending monthly cash balances in seven and eight months, respectively. The excessive cash balances are a result ofmanagement's failure to accurately forecast the cash needs of this program. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department ofEducation and disbursement of such funds by the Board. \n-3- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2001-h2002","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. 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(White County Board of Education, Ga), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (White County Board of Education, Ga.), fiscal year ended June 30, 2008-","Fiscal year ended June 30, 2000, released in 2001; title from cover.","Fiscal year ended June 30, 2008, released in 2009."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","White County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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":null,"fulltext":"\" .. , \n\", ,\" \n,r ...~. .: \n \n.., ,~ \n \n...... \n\" ,.--1 \n\" r\":r, .) \n-\"..' II t \n \n,( \n \n\", \n \n' .... I \n 'f : ~ '. \n \nf ... : ... \n.. '. \n \n.. ,,' \n \n...... \n'\" ' \n~ _ J, ~ \n \nJ._' \n \n,~ , \n \n'. \n \n.'.' \n \n:~  \\ ' \n \n, J -:: \n \n, ..... \n \n. '. ~ \n \n, ,., ..... ',' \n, L' \n \n,., \n'\" \n \n..... 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' \n. :''.;J .r. \n \n WHTIECOUNTY BOAkD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nAND EXPENDABLE TRUST FUNDS \n \n4 \n \nC .' COMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD \n \nCOMBINED STATEMENT OF REVENUES, EXPENSES AND \n \nCHANGES FUND BALANCES \n \nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \n \n8 \n \nE \n \nCOMBINED STATEMENT OF CASH FLOWS \n \nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \n \n10 \n \nF NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n12 \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING AND INDIVIDUAL FUND STATEMENTS \n \nSPECIAL REVENUE FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n28 \n \nCAPITAL PROJECTS FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n30 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n32 \n \nDEBT SERVICE FUND \n \nK \n \nCOMBINING BALANCE SHEET \n \n34 \n \nL \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n35 \n \n WHITE COUNTY BOARD OF EDUCAnON - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDmONAL FINANCIAL INFORMAnON \n \nEXHIBITS \n \nCOMBINING AND INDIVIDUAL FUND STATEMENTS \n \nFIDUCIARY FUND TYPES \n \nM \n \nCOMBINING BALANCE SHEET \n \n36 \n \nN \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nEXPENDABLE TRUST FUNDS \n \n38 \n \no \n \nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUND \n \n39 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n40 \n \n2 SCHEDULE OF STATE REVENUE \n \n42 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n43 \n \nALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCAnON PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n44 \n \n5 \n \nBY SITE \n \n45 \n \nSECTIONll \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN \nACCORDANCE wrrn GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE wrrn REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn \nOMB CIRCULAR A-133 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n.. \n \n SECTION I FINANCIAL \n \nI \nj j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j \nJ \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(4()4) 55\u0026-2 \\7 4 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS 254 Washinglon Slreel, S w.. Suile 214 \nAllanla, Georgia 30334-\u0026400 \nMarch 20, 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe White County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements ofthe White County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe White County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2002ARL-13 \n \n * The general-purpose financial statements of the Board of Education did not contain a \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. \n* School activity accounts maintained at the individual schools are not included in the \ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \n* For fiscal year 2002, the School District changed its method ofaccounting for the final \ntwo payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted accounting principles require that expenditures be recorded when inc~ed, rather than when funds are received or disbursed. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \nIn our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding Paplgraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe White County Board ofEducation as of June 30,2002, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated March 20, 2003, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe White County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits G through 0) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. \n2002ARL-13 \n \n Office ofManagement and Budget Circular A-B3, Audits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. , \nRespectfully submitted, \n \nRWH:gp 2002ARL-13 \n.' \n \nRu ell W. Hinton State Auditor \n \n .. \n \nWHTInCOUNTYBOARDOFEDUCATION \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUNP TYPES AND ACCOUNT GROUp JUNE 30, 2002 \n \nASSETS \nCash and cash Equivalents \nInvestments \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 3,503,448,02 $ 507,006.88 $ 1,898,529.28 \n \n6,350,000.00 \n \n2,229.887,23 \n \n129,908,99 \n \n264,264 79 \n \n19,019.93 11.926.32 \n \nTotal Assets \n \n$ 5,733,335,25 $ 667.862,12 $ 8,512,794.07 \n \nLIABILITIES ANp FUND EaUITY \nLIABILITIES\" \nAccounts Payable Salaries Payable expired Grant Balances Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable \nTotal UablUbes \nFUND EgUIJY \nFund Balances Reserved For Continuation of Federal Programs For Debt Service For Endowment Corpus For Inventones Food Donated CommodrtJes Purchased Food For Purpose of Bond Issue For Sta1e Capital Outlay Pl'Ojects Unreserved Designated for Scholarships Undesignated \nTotal Fund Equity \n \n$ \n \n581,459.07 $ \n \n2,121,597,20 \n \n28,021,56 \n \n3,770.39 \n \n41,531.00 152,160,12 \n273,73 83,768,00 \n \n$ 2,734,848,22 $ 277,732,85 \n \n$ \n \n19,019.93 \n \n11,926.32 \n \n$ 6,515,551,98 \n \n1,326,191,00 \n \n$ 2,998,487.03 $ 2,998,487 03 $ \n \n359,183.02 390,'2927 $ \n \n671,051.09 8,512,794 07 \n \nTotal UabflllJes and Fund Equity \n \n$ 5,733,335,25 $ 667,86212 $ 8,512,794.07 \n \nThe notes to the general-purpose finandal statements are an integral part of thIS statement. -2- \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nFIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS \n \n$ \n \n4,96411 $ \n \n11,482.33 \n \n3,163,740.08 \n \n23.53314 \n \n457,474.27 \n \nACCOUNT GROUP \nGENERAL LONG-TERM \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ 5,925,430.62 $ 3,722,611.93 \n \n9,537.273.22 \n \n3.008.380.26 \n \n3,081,535.28 \n \n890,404.82 \n \n$ 3,626,178.46 15,083,821.54 \n \n19,019.93 11.926.32 3.626,178.46 \n15,083,821.54 \n \n16,659.30 13.389.11 3,444,231.45 \n8,260,76855 \n \n$ 3,626,178.46 $ \n \n35,015.47 $ 18,710,000.00 $ 37,285,185.37 $ 19,356,445.42 \n \n$ \n \n622,990.07 $ \n \n44,570.51 \n \n2,273,757,32 \n \n164,505.53 \n \n28,295.29 \n \n558.85 \n \n87.538.39 \n \n$ \n \n428.91 \n \n428.91 \n \n497.83 \n \n$ 18,710,000.00 \n \n18,710,000.00 \n \n11,705,000.00 \n \n$ \n \n428.91 $ 18,710,000.00 $ 21,723,00998 $ 11,915,132.72 \n \n$ 3.626,178.46 $ \n \n23,500.00 \n \n000 $ 3,626.178.46 $ \n \n11,086.56 0.00 \n34,586.56 \n \n$ \n \n29,040.32 \n \n$ 3,626,178.46 \n \n3.444.241.35 \n \n23,500.00 \n \n23,500.00 \n \n19,019.93 11,926.32 6,515,551.98 1.326,191.00 \n11.086.56 4,028,721 14 \n$ 15,562,17539 $ \n \n16,659.30 13,389.11 \n9,nO.18 3,904,712.44 7,441,31270 \n \n$ 3,626,178.46 $ \n \n35,01547 $ 18l10,OOO.00 $ 37.285,185 37 $ 19,356,44542 \n \n-3- \n \n WHITE COUNTY BOARD OF EDUCATION \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND nPES ANP EXPENDABLE TRUST FUNDS \nYEAR ENpED JUNE 30, 2002 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media SeMces General Administration School Administration Business Admlnlstrabon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food serviceS Operation \nCapital Outlay Debt Service \nPrinCipal Interest PaYing Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds from General Obligation Bonds Par Value \nOperabng Transfers In Operating Transfers Out \nTotal Other FinanCing Sources (Uses) \nExcess of Revenues and Other FinanCing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated CommoditieS Purchased Food \n \nGENERAL FUND \n \nGOVERNMENTAL FUND \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 16,440,884,75 $ 19,398,95 \n8,800,074,73 562,719,09 \n$ 25,823,On,52 $ \n \n196,543,84 1,833,196,59 \n705,68982 $ \n2,735,430,25 $ \n \n328,235.84 328,23584 \n \n$ 18,408,948,10 $ \n518,198,99 623,722,57 647,278,93 390,343,54 1,644,820,44 223,371,69 1,839,014,76 1,223,575,86 141,341,35 \n46,180.85 9,596,47 \n \n1,035,912,34 176,124,99 40,012,15 37,952,54 $ \n1,474,362,86 \n \n124,180,24 1,411,030,33 \n \n$ 25,716,393,55 $ \n \n$ \n \n106,683,97 $ \n \n2,764,364.88 $ -28,934,63 S \n \n1,535,210,57 -1,206,974,73 \n \n$ \n \n47,800,00 S \n \n-2,614.98 \n \n$ \n \n45,185.02 $ \n \n$ 2,614,98 \n2,614.98 $ \n \n9,230,000,00 -211,863,25 9,018,136.75 \n \n$ \n \n151,868,99 $ \n \n2,846,618,04 \n \n-26,319,65 $ 415,551,08 \n \n7,811,162.02 701,632,05 \n \n2,360,63 -1,462.79 \n \nFUND BALANCE JUNE 30 \n \n$ 2,998,487 03 S \n \n390,129.27 $ 8,5121794 07 \n \nThe notes to the general-purpose financial statements are an Integral part of thIS statement. -4- \n \n EXHIBIT\"B\" \n \nTYPES DEBT \nSERVICE FUND \n \nTOTAL \n \nFIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ 16,637,428.59 \n \n1,852,595.54 \n \n$ 2,863,382.35 \n \n11,663,457.08 \n \n46,471.51 \n \n1,643,116.26 $ \n \n$ 2,909,853.86 $ 31,796,59747 $ \n \n$ 1,316.52 \n \n16,637,428.59 $ 1,852,595.54 11.663,457.08 1,644,432.78 \n \n13,032,357.83 1,524,183.94 \n10,364,635.45 1,339,729.21 \n \n1,316.52 $ 31,797,913.99 $ 26,260.906.43 \n \n$ 19,444,860.44 \n \n694,323.98 663,734.72 647,278.93 428,296.08 $ 1,644,820.44 347,551.93 1,839,014.76 1,223,575.86 141,341.35 \n46,180.85 1.483,959.33 1,411,030.33 \n \n$ 2,225,000.00 664,2n.00 2,703.00 \n \n2,225,000.00 664,2n.OO 2,703.00 \n \n$ 2,891,980.00 $ 32,907,949.00 $ \n \n$ \n \n17,873.86 $ -1,111,351.53 $ \n \n$ 19,444,860.44 $ 15,280,359.59 \n \n1,166.66 \n \n694,323.98 663,734.72 647,278.93 429,462.74 1,644,820.44 347,551.93 1,839,014.76 1,223,575.86 141,341.35 \n46,180.85 1,483.959.33 1,411,030.33 \n \n460,635.59 699,263.27 567,151.65 445,366.16 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12 \n84,879.50 33,937.41 1.237,324.36 811,456.67 \n \n2,225,000.00 664,2n.00 2,703.00 \n \n1,990,000.00 586,841.25 4,558.00 \n \nU66.66 $ 32,909,11566 $ 26,297,105.94 \n \n149.86 $ -1,111 ,201.67 $ \n \n-36,199.51 \n \n$ 9,230,000.00 \n \n$ \n \n164,063.25 \n \n214,478.23 \n \n-214,478.23 \n \n$ \n \n164,063.25 $ 9,230,000.00 \n \n$ \n \n181,937.11 $ 8,118,648 47 $ \n \n3,444,241.35 \n \n7,408,042.52 \n \n2,36063 -1,462.79 \n \n$ 9,230,000.00 214,478.23 $ -214,478.23 \n$ 9,230,000.00 $ \n \n81,555.53 -81,555.53 \n0.00 \n \n149.86 $ 2,121 62 \n \n8,118,79833 $ 7,410,164.14 \n \n-36,199.51 7,448,361.58 \n \n2,360.63 -1,46279 \n \n-466.49 -1 ,531.44 \n \n$ 3,626,178.46 $ 15,527,58883 $ \n \n2,27148 $ 15,529,860.31 $ 7,410,164 14 \n \n-5- \n \n WHITE COUNTY BOARD OF EDUCATION \nCOMBINED STATEMENT OF REVENUES EXPENPITURES ANp CHANGES IN FUND BALANCES \nBURGET ANP ACTUAL - (NON-GMP BASIS) \nGENERAL AND SPECIAL REVENUE FUNpS \nYEAR ENDER JUNE 30 2002 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \n$ 13,413.71698 $ 16,440.884 75 \n \n222.08600 \n \n19,39895 \n \n8.293,41300 \n \n8,800,074,73 \n \n355.00000 \n \n562,71909 \n \nTotal Revenues \n \n$ 22.284,21598 $ 25,823,On 52 \n \nEXPENDITURES \n \nCurrent Instruction Support 5eMCeS Puptl5eMCeS Improvement of InstruetJonal Servrces EduCBttonal Media 5ervu:es General Adm,nlstrabon School Admlnl5trabon BUSiness AdmlnlSIratton Maintenance and Operation of Plant Student Transportation 5eMces Central Support 5eMces Other Support ServIces Food 5eMCes Operation \n \n$ 16.379,434,98 $ 18.408.94810 \n \n483,60500 783.20000 620.43500 399.03500 1,617.926 00 209,71500 1.831,090,00 1.095,170 00 140,67500 \n24.125.00 \n \n518.19899 623.722 57 647.27893 390.34354 1.644.820 44 223,371,69 1.839,014 76 1,223.57586 141.341,35 \n46.18085 9.59647 \n \nTQt81 Expendrturas \n \n$ 23,584.41098 $ 25,716,39355 \n \nExcess of Revenues over (under) Expendrtures \n \n$ -1,300,19500 $ 106,68397 \n \nOTHER FINANCING SOURCES (USES) \n \nOther Sources Other Uses \n \n$ \n \n47.80000 \n \n-2,61498 \n \nTotal Other Flnanang Sources (Uses) \n \n$ \n \n45,185,02 \n \nExcess of Revenues and Other FinanCing Sources over (under) Expend,turas and Other FinanCing Uses $ -1,300.195,00 $ \n \n151,86899 \n \nFUND BALANCE JULY 1 2001 \n \n2,544.10020 \n \n2,846,61804 \n \nAdjustments Food Inventory - Net Change In Pened \nDonated Commochtles Purchased Food \n \nFUNR BALANCE JUNE 30 2002 \n \n$ 1,243,905 20 $ 2,998,487 03 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \n$ 178.226 00 $ 196,54384 \n \n1,733,405 00 \n \n1.833.196 59 \n \n704,49000 \n \n705,68982 \n \n$ 2,616,121,00 $ 2,735,43025 \n \n$ 953,030,00 $ 1,035,912.34 \n \n176.33500 36,68883 \n \n176.12499 40,01215 \n \n39.180 00 \n \n37.95254 \n \n800,00 \n \n1,407.833 00 \n \n1,474,36286 \n \n$ 2,613,84683 $ 2,764,364 88 \n \n$ \n \n2,27417 $ -28,934 63 \n \n$ \n \n2,614.98 \n \n$ \n \n2,61498 \n \n$ \n \n2,27417 $ -26.31965 \n \n474.83092 \n \n415.551 08 \n \n-23.427.00 \n \n2.36063 -1,46279 \n \n$ 453,67809 $ 390,129 27 \n \nThe notes to the general-purpose tinanCl8I statements Bra an Integral part of thiS stetement -7- \n \n - - - - - - - - - - - - - - - - - - - - - - - ------- \nWHITE COUNTY BOARD OF.EDUCATION COMBINED STATEMENT OF REVENUES, ExI?ENSES AND CHANGES IN FUND BALANCES \nFIDUCIARY FUND TYPE - NONB\u003cPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2002 \n \nOPERATING REVENUES Donations \nOPERATING EXPENSES Current Support Services General Administration Operating Income \nNONOPERATING REVENUES Interest Earned \"Net Income \nFUND BALANCE JULY 1 \n \nFIDUCIARY FUND \n \nNONEXPENDABLETRUST \n \nINDA YVONNE \n \nJULIA AND \n \nALLEN MINORITY \n \nHARWELL WESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \n$ \n \n710.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n$ \n \n710.00 $ \n \n777.Q1 \n \n$ \n \n1,487.01 $ \n \n20,898.64 \n \n360.00 -360.00 \n351.29 -8.71 \n1,041.85 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n22,385.65 $ ......_ _=1=,0.=33=..1..4. = \n \nThe notes to the general-purpose financial statements are an integral part of this statement. - 8- \n \n EXHIBIT\"D\" \n \nTYPE FUNDS \nVERA WESTMORELAND \nSCHOLARSHIP \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \n \n$ \n \n0.00 $ \n \n710.00 $ _ _--.:5..;;.61.....\"'-54-'-. \n \n$ \n \n600.00 $ \n \n960.00 $ _ _....;:3=0=0.=00~ \n \n$ \n \n-600.00 $ \n \n-250.00 $ \n \n261.54 \n \n288.22 \n \n1,416.52 \n \n1,247.73 \n \n$ \n \n.. -311.78 $ \n \n1,166.52 $ \n \n1,509.27 \n \n9,208.07 \n \n31,148.56 \n \n29,639.29 \n \n$ \n \n8,896.29 $ \n \n32,315.08 $c::::=:o-=:31=,1.4.8...5..6... \n \n-9- \n \n WHITE COUNl,Y BOARD OF EDUCATION \nCOMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND lYPE - NONEXPENDABLE TRUST FUNDS \nYEAR ENDED JUNE 30, 2002 \n \nCash Flows from Operating Activities: Cash Received from Donations Cash Paid for Scholarships \nNet Cash Provided (Used) by Operating Activities \nCash Flows from Investing Activities: Interest Received on Investments Investments Realized \nNet Cash Provided by Investment Activities \nNet Increase (Decrease) in Cash \nCash and Cash Equivalents July 1 \n \nFIDUCIARY FUND \n \nNONEXPENDABLE TRUST \n \nINDA YVONNE \n \nJULIA AND \n \nALLEN \n \nHARWELL \n \nMINORITY \n \nWESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \n$ \n \n710.00 \n \n$ \n \n-360.00 \n \n$ \n \n710.00 $ \n \n-360.00 \n \n$ \n \n777.01 $ \n \n351.29 8.71 \n \n$ \n \n777.01 $ \n \n$ \n \n1,487.01 $ \n \n6,398.64 \n \n360.00 0.00 0.00 \n \nCash and Cash Equivalents June 30 \n \n$ \n \n7,885.65 $ ==-===-===0=:,0;;,;0... \n \nThe notes to the general-purpose financial statements are an integral part of this statement. - 10- \n \n EXHIBIT\"E\" \n \nTYPE FUNDS \nVERA WESTMORELAND \nSCHOLARSHIP \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \n \n$ \n \n710.00 $ \n \n561.54 \n \n$ \n \n-600.00 \n \n-960.00 \n \n-300.00 \n \n$ \n \n-600.00 $ \n \n-250.00 $ \n \n261.54 \n \n$ \n \n288.22 $ \n \n1,416.52 $ \n \n1,247.73 \n \n8.71 \n \n$ \n \n288.22 $ \n \n1,425.23 $ \n \n1,247.73 \n \n$ \n \n-311.78 $ \n \n1,175.23 $ \n \n1,509.27 \n \n: 1,208.07 \n \n7,606.71 \n \n6,097.44 \n \n$ \n \n896.29 $ \n \n8,781.94 $ o=:::=-=7Z!:,6:cii06=:.=71= \n \n- 11 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHmIT \"F\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 3D. 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe White County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \n.' \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. \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 fmancial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \n \n- 12- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHmIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \nFIDUCIARY FUND TYPES - the funds 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. These funds include: \nNONEXPENDABLE TRUST FUNDS Inda Yvonne Allen Minority Scholanhip Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to minority graduating seniors of the White County High School. \nJulia and Harwell Westmoreland Citizenship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide an award to a male and female student s.elected by the senior class each year. \nVera Westmoreland Scholanhip Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid each year to a deserving senior who has been accepted to college. \nEXPENDABLE TRUST FUNDS Libby Alexander Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a deserving student. \nLion's Club Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a graduating senior who has been accepted by a post secondary institution. \nAGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \n \n- 13- \n \n - ------- ---------------- \n \nWHITE COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \n.' \nAll nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nExpenditures are generally recognized when the related fund liability is incurred. \n- 14- \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nFor fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this infonnation was not readily available. \nThe net effect ofthe above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue due from the State to fund these contracts. 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. \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. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \nBUDGET \nThe White County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \n \n- 15 - \n \n WHITE COUNfY BOARD OF EDUCATION \n \nEXHmIT \"F\" \n \nNOTES TO 1HE GENERAVPURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in authorized fmancial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective; given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables \n- 16- \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHIBIT \"Fit \n \nNOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nare recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe White County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 31, 2001 (levy date). Taxes were due on December 31, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $8,727,057.11 and for school bonds amounted to $281,296.95. \n \nTax millage rates levied for the 2001 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.470 mills .452 mills \n \n14.922 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax revenue during the year amounted to $2,582,085.40 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \n \n- 17 - \n \n --------------- \n \nWHITE COUNTY BOARD OF EOVCAnON \n \nEXHlBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Tenn Debt Account Group. \nINTERFUND TRANSACTIONS \nThe School District has the following types of interfund transactions: \nReimbunements ofexpenditures/expenses initially made from a fund that are properly applicable \nto another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. \nOperating transfen are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY - TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in confonnity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \nNote 2: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of anyone of or any combination of the following: \n \n- 18 - \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHIDIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2: DEPOSITS AND INVESTMENTS \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $13,084,138,17. The amounts ofthe total bank balances are classified into three categories of credit risk: \nCategory 1 - Cash that is insured (e,g\" Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \nThe School District's deposits are classified by risk category at June 30, 2002, as follows: \n \n- 19- \n \n ----- - - \n \nWHITE COUNfY BOARD OF EDUCAnON \n \nEXHmIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 7,720,746.29 \n \n2 \n \n5,363,391.88 \n \n3 \n \n0.00 \n \nTotal \n \n$13,084,138.17 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $3,163,740.08 which is materially the same as fair value. \n \nType of Investment \nInvestments not Subject to Categorization: Local Government Investment Pools Mutual Funds \" Money Market Account \nTotal Investments \n \nCarrying Amount \n \nFair Value \n \n$ 3,073,149.15 $ 3,073,149.15 \n \n90,590.93 \n \n90,590.93 \n \n$ 3,163,740.08 $ 3,163,740.08 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; 'operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \n- 20- \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"F\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n.' \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaIms Paid \n \nEnd ofYear LIabilIty \n \n2001 2002 \n \n$ \n \n0.00 $ \n \n2.832.00 $ \n \n2.832.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 4: RISK MANAGEMENT \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Employee Blanket Bond \n \n$ 50,000.00 $ 100,000.00 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Qbligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1993 General Government - Series 1997 General Government - Series 2001 \n \n3.10% - 5.55% 3.80% - 4.30% 4.05% \n \n$ 5,560,000.00 3,920,000.00 9,230,000.00 \n \n$18.710.000.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: \n \nGeneral Obligation \nBonds \n \nBalance July 1,2001 \n \n$11,705,000.00 \n \nAdditions G.O. Bonds \n \n9,230,000.00 \n \nDeductions Debt Retired \nBalance June 30,2002 \n \n2,225,000.00 $18.710,000.00 \n \n- 22- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nAt June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2003 2004 2005 2006 2007 2008 - 2012 2013 - 2017 \n \n$ 3,270,123.75 4,516,315.00 2,697,092.50 2,697,016.25 2,702,417.50 5,188,860.00 1,262,293.75 \n \nTotal Principal and Interest \n \n$22.334,118.75 \n \nNote 6: ON-BEHALF PAYMENTS \n, \nThe School District has recognized revenues and expenditures in the amount of$337,120.83 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $286,964.80 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System Employer's Cost In the amount of $22,047.03 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$28,109.00 \n \nNote 7: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available: \n \n- 23- \n \n - - - -- - - - - - - - - - - - - - - - - - \n \nWHITE COUNfY BOARD OF EDUCAnON \n \nEXHmIT \"F\" \n \nNOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 7: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nWhite County Intermediate School Additions Mount Yonah Elementary School \n \n$ 15,195.00 82,906.35 $ 2,665,813.00 \n \n$ 98,101.35 $ 2,665,813.00 \n \nThe amounts described in this note are not reflected in the general-purpose financial statements. \n \nNote 8: CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. \n \nNote 9: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board 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: \n \n- 24- \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 9: RETIREMENT PLANS \nFiscal Year \n2002 2001 2000 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 1,304,223.76 $ 1,429,726.47 $ 1,278,955.59 \n \n\" \n \n- 25- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 \n \nASSETS \nCash and Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLIABILITIE,S \nCash Overdraft Accounts Payable Salaries Payable .Expired Grant Balances Payable Deferred Revenue \nTotal Uabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \nTotal Uabilities and Fund Equity \nSee notes to the general-purpose financial statements. \n- 26- \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTIERY PROGRAMS \n \n$ \n \n446,092.93 $ \n \n82,117.00 \n \n19,019.93 11.926.32 \n \n$ \n \n477,039.18 $ -===-==822:.1...1.=7.=00= \n \n$ \n \n16,906.05 \n \n70.003.86 \n \n$ \n \n82,117.00 \n \n$ \n \n86,909.91 $ \n \n82,117.00 \n \n$ \n \n19,019.93 \n \n11,926.32 \n \n359.183.02 $ \n \n0.00 \n \n$ \n \n390,129.27 $ \n \n0.00 \n \n$ \n \n477,039.18 $ ====8::;;2.,.1..=17=.=00= \n \n EXHIBIT\"G\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n954.16 $ \n \n529,164.09 $ \n \n456,878.10 \n \n$ \n \n129,908.99 \n \n129,908.99 \n \n84,085.38 \n \n19,019.93 11,926.32 \n \n16,659.30 13,389.11 \n \n$ \n \n129,908.99 $ \n \n954.16 $ \n \n690,019.33 $ --=:-:;;5.71.C!:,O..1.\",;,;1.8.9.c=. \n \n. \n \n$ \n \n22,157.21 \n \n23,670.79 $ \n \n82,156.26 \n \n273.73 \n \n1,651.00 \n \n$ \n \n129,908.99 $ \n \n$ 954.16 \n954.16 $ \n \n22,157.21 41,531.00 $ 152,160.12 \n273.73 83,768.00 \n299,890.06 $ \n \n32,615.97 122,285.99 \n558.85 \n155,460.81 \n \n$ \n \n0.00 $ \n \n$ \n \n0.00 $ \n \n$ \n \n129,908.99 $ \n \n$ \n \n29,040.32 \n \n$ \n0.00 0.00 $ \n \n19,019.93 11,926.32 \n359,183.02 \n390,129.27 $ \n \n16,659.30 13,389.11 \n356,462.35 \n415,551.08 \n \n954.16 $ \n \n690,019.33 $ =-==-=5=:7=,:1!:=:,O=11=.8~9... \n \n- 27- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instrudional Services General Administration Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTIERY PROGRAMS \n \n$ \n \n98,072,00 $ \n \n672,862.87 \n \n705,689.82 \n \n$ 1,476,624.69 $ \n \n92,226,00 92,226.00 \n \n$ \n \n92,250.14 \n \n$ 1,473,904.02 \n \n$ 1,473,904,02 $ \n \n$ \n \n2,720.67 $ \n \n92,250.14 -24.14 \n \n$ \n \n$ \n \n$ \n \n2,720.67 $ \n \n386,510.76 \n \n2,360.63 -1,462.79 \n \n24.14 24.14 \n0,00 0.00 \n \n$ \n \n390,129.27 $ -==-==0...=00= \n \nSee notes to the general-purpose financial statements, - 28- \n \n EXHIBIT\"H\" \n \nFEDERAL \nPROGRAMS \n \nOTHER \nPROGRAMS \n \nTOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \n \n$ $ 1,160,333.72 \n$ 1,160,333.72 $ \n \n6,245.84 $ 6,245.84 $ \n \n196,543.84 $ 1,833,196.59 \n705,689.82 \n2,735,430.25 $ \n \n192,260.00 1,523,207.04 \n579,032.45 \n2,294,499.49 \n \n$ \n \n943,662.20 \n \n176,124.99 33,766.31 $ 37,952.54 \n458.84 \n \n$ 1,191 ,964.88 $ \n \n$ \n \n-31,631.16 $ \n \n$ 6,245.84 \n6,245.84 $ 0.00 $ \n \n1,035,912.34 $ \n176,124.99 40,012.15 37,952.54 1,474,362.86 \n2,764,364.88 $ \n-28,934.63 $ \n \n832,492.47 \n114,052.76 41,139.59 27,044.99 1,236,799.61 \n2,251 ,529.42 \n42,970.07 \n \n$ \n \n2,590.84 \n \n$ \n \n2,590.84 \n \n$ \n \n-29,040.32 $ \n \n29,040.32 \n \n$ \n \n2,614.98 $ \n \n6,699.85 \n \n-1 ,555.68 \n \n$ \n \n2,614.98 $ \n \n5,144.17 \n \n0.00 $ 0.00 \n \n-26,319.65 $ 415,551.08 \n \n48,114.24 369,434.77 \n \n2.360.63 -1,462.79 \n \n-466.49 -1,531.44 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n390,129.27 $ ......=4,;,;1.5.5,5=51=..0.8;;\", \n \n29 - \n \n --------- -- - - \nWHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND \nJUNE 3D. 2002 \n \nASSETS Cash and Cash EqUivalents Investments Accounts Receivable \nTotal Assets \nLIABILITIES AND FUND EQUITY LIABILITIES \nCash Overdraft FUND EQlJITY \nFund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projeds Unreserved Undesignated Total Fund Equity \nTotal Liabilities and Fund Equity \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n671,051.09 \n \n$ 6,350,000.00 \n \n$ \n \n671,051.09 $ 6,614,264.79 \n \n$ \n \n98,712.81 \n \n$ 6.515,551.98 \n \n$ \n \n671.051.09 \n \n0.00 \n \n$ \n \n671,051.09 $ 6,515.551.98 \n \n$ \n \n671,051.09 $ 6,614,264.79 \n \nSee notes to the general-purpose financial statements. \n- 30- \n \n EXHIBIT \"I\" \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n1,326,191.00 $ 1,997,242.09 $ \n \n701,632.05 \n \n6,350,000.00 \n \n264,264.79 \n \n$ \n \n1,326.191.00 $ 8,611,506.88 $ 0:::::===-=7=01:=.:,.63.=2.=:05=. \n \n$ \n \n98,712.81 \n \n.. \n \n$ 6,515,551.98 \n \n$ \n \n1,326,191.00 \n \n1,326,191.00 \n \n0.00 \n \n671,051.09 $ \n \n$ \n \n1,326,191.00 $ 8,512,794.07 $ \n \n7:.,:0:.:,1~,6;::32::..0:::.:5~ \n7:.,:0:.:,1L:,6;::32::..0:::.:5~ \n \n$ \n \n1,326,191.00 $ 8,611,506.88 $ -===-==::::::7;.:0:.;,1l:::,6=:32=:.0..5= \n \n- 31 - \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n671,051.09 $ 6,515,551.98 \n \nSee notes to the general-purpose financial statements. - 32- \n \n EXHIBITRJR \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n...;:O;.;.;.OO~ $ \n \n328,235.84 $ \n \n44;...;..L.,;,1....;.49=..:.=.;69~ \n \n$ \n \n0.00 $ \n \n124,180.24 \n \n1,411,030.33 $ \n \n659,990.27 135,000.00 \n \n$ \n \n0.00 $ 1,535,210.57 $ \n \n794,990.27 \n \n$ \n \n0.00 $ -1,206,974.73 $ \n \n-750,840.58 \n \n. \n \n$ 9,230,000.00 \n \n$ \n \n1,326,191.00 \n \n1,326,191.00 \n \n-1,538,054.25 $ \n \n$ \n \n1,326,191.00 $ 9,018,136.75 $ \n \n-73,300.00 -73,300.00 \n \n$ \n \n1,326,191.00 $ 7,811,162.02 $ \n \n-824,140.58 \n \n0.00 \n \n701,632.05 \n \n1,525,n2.63 \n \n$ \n \n1,326,191.00 $ 8,512,794.07 $======7..0..1...,6..=32=..0.5... \n \n- 33- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET PEBT SERVICE FUNp JUNE 30, 2002 \n \nEXHIBIT \"K\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nTotal Assets \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ 1,222,083.70 \n \n$ 1,222,083,70 $ 1,222,965.25 \n \n$ 3,163,740.08 \n \n3,163,74008 \n \n2,984,83841 \n \n8,079,79 \n \n449,39448 \n \n457,474,27 \n \n453,557.28 \n \n$ 1,230,163,49 $ 3,613,134.56 $ 4,843,298.05 $ 4,661,360.94 \n \nLIABILITIES AND FUND EqUITY \nLIABILITIES \nCash Overdraft \nFUND EQUITY \nFund Balances Reserved For Debt Service UnreserVed Undesignated \nTotal Fund EqUIty \n \n$ 1,217,119.59 $ 1,217,119.59 $ 1,217,119,59 \n \n$ 1,230,163,49 $ 0,00 \n$ 1,230,163,49 $ \n \n2,396,014.97 $ 3,626,178,46 $ 3,444,241.35 \n \n0.00 \n \n0.00 \n \n0.00 \n \n2,396,014.97 $ 3,626,178,46 $ 3,444,241.35 \n \nTotall/abilities and Fund EqLMty \n \n$ 1,230,16349 $ 3,613,134.56 $ 4,843,29805 $ 4,661,360.94 \n \nSee notes to the general-purpose finanCIal statements. \n \n34- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nDEBT SERYJCE FUND YEAR ENDED JUNE 30. 2002 \n \nEXHIBIT\"l\" \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \n \nREVENUES \n \nTaxes Other Funds \n \nS 281,296.95 S 2,582,085.40 $ 2,863,382.35 $ 2,743,553.83 \n \n133.99 \n \n46,337.52 \n \n46,471.51 \n \n104,681 94 \n \nTotal Revenues \n \n$ 281,430 94 $ 2,628,422.92 $ 2,909,853.86 $ 2,848,235.n \n \nEXPENDITURES \n \nDebt5eNice Pnncipal Interest Paying Agent Fees \n \n$ 2,225,000.00 S 2,225,000.00 $ 1,990,000.00 \n \n664,2n.OO \n \n664,2n.00 \n \n586,841.25 \n \n$ \n \n2,703.00 \n \n2,703.00 \n \n4,558.00 \n \nTotal Expenditures \n \n$ \n \n2,703.00 $ 2,889,2n.00 $ 2,891,980.00 $ 2,581,399.25 \n \nExcess of Revenues over (under) Expenditures \n \n$ 278,727.94 $ -260,854 08 $ \n \n17,873.86 $ 266,83652 \n \nOTHER FINANCING SOURCES (USES) \n \nOperating Transfers In Operabng Transfers Out \n \n$ $ -282,000.00 \n \n446,063.25 $ 446,063.25 $ 258,OQ1.99 \n \n-282,000.00 \n \n-258,001.99 \n \nT9tal Other Financing Sources (Uses) \n \n$ -282,00000 $ 446,06325 $ 164,06325 $ \n \n0.00 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \n \n-3.2n.06 $ \n \n185,209.17 $ 181,937.11 $ 266,836.52 \n \nFUND BALANCE JULY 1 \n \n1,233,435.55 \n \n2,210,805.80 \n \n3,444,241.35 \n \n3,1n,404.83 \n \nFUND BALANCE JUNE 30 \n \nS 1,230,163.49 $ 2,396,01497 $ 3,626,17846 $ 3,444,241.35 \n \nsee notes to the general-purpose financial statements \n \n- 35- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2002 \n \nASSETS Cash and Cash Equivalents Investments \nTotal Assets \n \nNONEXPENDABLE TRUST FUNDS \n \nENDOWMENT FUNDS \n \nINDA YVONNE ALLEN \n \nJULIA AND HARWELL \n \nVERA \n \nMINORITY \n \nWESTMORELAND WESTMORELAND \n \nSCHOLARSHIP \n \nCmZENSHIP \n \nSCHOLARSHIP \n \n$ \n \n7,885.65 \n \n$ \n \n896.29 \n \n14,500.00 $ \n \n..:1\"\",,0~3=:3''-o:.14~ \n \n8,000.00 \n \n$ \n \n22,385.65 $ \n \n1,033.14 $ \n \n8.,8.9..6...2..9. . \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nFunds Held for Others \nFUND EQUITY \nFund Bar~nces \nReserved For Endowment Corpus \nUnreserved Designated for Scholarships UndeslQnated \nTotal Fund Equity \n \n$ \n \n14,500.00 $ \n \n7,885.65 0.00 \n \n$ \n \n22,385.65 $ \n \nTotal Uabilities and Fund Equity \n \n$ \n \n1,000.00 $ 33.14 0.00 \n1,03314 $ \n1,033.14 $ \n \n8,000.00 896.29 0.00 \n...::8:.,:,8::,::9=:6.:29::.,. \n8,1,;;,8.9.6....2_9.. \n \nSee notes to the general-purpose finanCial statements. \n \n- 36- \n \n EXHIBIT\"M\" \n \nEXPENDABLE TRUST FUNDS \n \nLIBBY ALEXANDER \n \nLION'S CLUB \n \nSCHOLARSHIP \n \nSCHOLARSHIP \n \nFUND \n \nFUND \n \nAGENCY FUND \n \nTOTALS JUNE 30, 2002 JUNE 30, 2001 \n \n$ \n \n2,220.48 $ \n \n51.00 $ \n \n428.91 $ \n \n11,482.33 $ \n \n10,226.16 \n \n23,533.14 \n \n23,541.85 \n \n$ \n \n2,220.48 $ \n \n51.00 $ \n \n428.91 $ \n \n35,015.47 $ _....3..3..,7..6.8...0..1.. \n \n$ \n\"\" \n \n$ \n \n2,220.48 $ \n \n51.00 \n \n000 \n \n0.00 \n \n$ \n \n2,220.48 $ \n \n~5.:.:.1.\"\",00\u003c- \n \n$ \n \n51.00 $ \n \n428.91 $ \n \n428.91 $ _ _--'4.;;.97;..:..8;;;;.;;3'- \n \n$ \n \n23,500.00 $ \n \n23,500.00 \n \n11,086.56 0.00 \n \n9,nO.18 0.00 \n \n$ \n \n34,586.56 $ _~3;:;3\u0026:,2..:.;70::.:..1.:.:8~ \n \n428.91 $ \n \n35.01547 $ _....3..3..,7..6.8..0..1... \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES,'EXPENDITURES AND CHANGES IN FUND BALANCES \nFIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS \nYEAR ENDED JUNE 30, 2002 \n \nEXHIBIT \"N\" \n \nLIBBY AlEXANDER SCHOLARSHIP FUND \n \nLION'S CLUB SCHOLARSHIP \nFUND \n \nTOTALS YEAR ENDED \nJUNE 30, 2002 JUNE 30, 2001 \n \nREVENUES Other Funds \nEXPENDITURES \n \n$ \n \n31652 $ \n \n1,000,00 $ \n \n1,316,52 $ \n \n1,356.56 \n \nCurrent \n \nSupport Services \n \nGeneral Administrabon \n \n$ \n \nExcess of Revenues over (under) Expenditures $ \n \nFUND BALANCE JULY 1 \n \n166.66 $ 149.86 $ 2,070.62 \n \n1,00000 $ 0,00 $ \n51.00 \n \n1,166,66 $ 149.86 $ \n2,121,62 \n \n1,500.00 -14344 2,265.06 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n2,22048 $ \n \n51,00 $ \n \n2,271,48 $ \n \n2.,1.2..1..6.2. . \n \n: \n \nsee notes to the general-purpose finanaal statements. \n \n- 38- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2002 \n \nEXHIBIT \"0 \n \nBUS DRIVERS' ASSOCIATION ASSETS \nCash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nBALANCE JULY 1, 2001 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2002 \n \n$ \n \n497.83 $ 585.00 $ \n \n653.92 $ ~==-a:::::::::4=28=.9=1= \n \n$ \n \n497.83 $ 585.00 $ \n \n653.92 $ ......~====4=28=.=91.... \n \n.' \n \nSee notes to the general-purpose financial statements. - 39- \n \n WHITE COUNTY BOARP Of EDUCATION SCHEDULE Of EXPENDITURES Of fEDERAL AWARDS \nYEAR ENDER JUNE 30, 2002 \n \nSCHEDULE \"1\" \n \nfUNDING AGENCY PROGRAM/GRANT \n \nCfDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nfEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgriculture. U S, Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education food and Nutr1t1on Program food services SChool Breakfast Program National SChool Lunch Program \nTotal Child NutrItion Cluster \n \n 10.553 10.555 \n \nNlA $ 135.521.60 \n \n(2) \n \nNlA \n \n460,33909 $ 1,396.901.84 (3) \n \n$ 595.860.69 $ 1,396.901.84 \n \nOther Programs \n \nPass-Through From Georgia Department of Education \n \nfood and Nutrttlon Program \n \nfood DlstnbutJon Program (1) \n \n10.550 \n \nNlA \n \nPass-Through From OffIce of Treasury and Fiscal services \n \nNational forest Reserve funds \n \n10.665 \n \nNlA \n \nn,002,18 19,398.95 \n \nn,D02.18 (4) \n \nTotal U. S. Department of Agriculture \n \n$ 692,261.82 $ 1,473,904.02 \n \nEducation, U. S. Department of Spedal Educabon Cluster Pass-Through From Georgia Department of Education Individuals with DIsabilities Education Ad Pa-rt B - Spedal Educallon capacity Building Improvement Flow Through Preschool \nTotal Special Education Cluster \n \n84.173 \n 84.027 \n 84.173 \n \nNlA $ 9,299.28 $ \n \nNlA \n \n352.027.84 \n \nNlA \n \n20,857.00 \n \n$ 382,184.12 $ \n \n9,299.28 352,331 18 (3) \n20,881.75 (3) \n382,512.21 \n \nOther Programs Pass-Through From Georgia Department of Educabon Elementary and secondary Education Act Title I Accountability Grant Delinquent Childran Grants to Local Educabonal AgenCies TItle II Eisenhower Professional Development TItle VI Class Size Reductlon Innovabve Educabon Program Strategl8S Vocational Educabon - Basic Grants to States High School Program Basic Grant \n \n84.348 \n \nNlA \n \n84.010 \n \nNlA \n \n84.010 \n \nNlA \n \n84.281 \n \nNlA \n \n84.340 \n \nNlA \n \n84.298 \n \nNlA \n \n84 048 \n \nNlA \n \n59.026.00 48,129.37 457,170.15 \n17.500.00 \n66,826.00 16,850.00 \n28.943.00 \n \n60.051.89 (3) 48,129.37 457,456.63 (3) \n20.712.83 (3) \n67,334 41 (3) 16,863.13 (3) \n29,371 84 (3) \n \nTotal U S. Department of Educabon \n \n$ 1.076,628 64 $ 1,082.432.31 \n \nHealth and Human services. U. S. Department of Pass-Through From Ninth Dlstncl Opportunity. Incorporated Head Start \n \n93600 \n \nNlA $ 83,705.08 $ \n \n109.532 57 (3) \n \nTotal Federal Financial AsSistance \nNlA = Not Available \n \n- 40- \n \n$ 1.852.595.54 $ 2.665.86890 \n \n WHITE COUNTY BOARD OF EDUCATION \nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2002 \n \nSCHEDULE \"1\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amounts shown for the Food Dlslrlbu!Jon Program represents !he Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during !he current fiscal year \n(2) Expendrtures for !he SChool Breakfast Program were not maintained separately and are Included In the 2002 NaUonal School Lunch Program \n(3) Expenditures for this program Include State, and/or Other Funds Expenditures are not maintained by fund source \n(4) Funds earned on this program do not require repomng of expendrtures. \nMajor Programs are idenUfied by an asterisk (*) in front of the CFDA number. \nThe School Dlslrld did not provide Federal Assistance to any Subreclplent. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and Is presented on the modified aeaual basis of accounUng which is !he baSIS of accounting used In the presentaUon of the general-purpose finanCial statements. \n \n.' \n \nsee notes to the general-purpose finanaal statements. \n \n- 41 - \n \n WHITE COUNTY BOARD OF EDUCATION SCHEPUlE OF SIDE REVENUE YEAR ENpED JUNE 30 2002 \n \nSCHEDULE \"2\" \n \nAGENCY/fUNDING \nGRANTS EducatIOn, Georgia Department of Quality BaSIC Education Direct Instructional Cost KJIldergarten Program KJIldergarten Program - Earty Intervention Program Pnmary Grades (1-3) Program Pnmary Grades Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary - Earty Intervention (4-5) Program Middle Grades (6-8) Program Hrgh School General EdueatJon (9-12) Program Vocational Laboratory (9-12) Program Students with Disabllltles categexy I Category II Getegory III category IV Category V Gifted Student - Getegory VI Remedl8l education Program A1tematlV8 Educatton Program Media Gentar Program Staff and ProfesslonaJ Development Twenty Days Addltlonallnstructron Indirect Cost Calegoncal Grants Pupil Transportebon Regular ~us Replacement Sparsity Nursing 5e1'VlC8S PnnapalSu~emS VocatJonaJ SUperviSOrs Education Equalization FUndIng Grant DefemId Sunvner Salanes (Current Year) Food5eMces Vocational EducatJon Other State Programs ApprenticeshiP Program EnVironmental 5aenca Program Health Insurance Mentor Teachers Pay for Performance Post Secondary OptIon Praschool Handicapped Program StatllWlde After School Program (4-8) StatllWlde Reading Program (K.3) Teachers' Retirement lottlllY Programs Asslstlve Technology Computers In the Classroom Next Generation Schools \nQfIice of Public safety Dnvers' Educabon Grant \nOfIica of Treasury and Fiscal Services PublIC School Employees Retirement \nCONTRACT Education, Georgia Department of Reading First Program \n \nSee notes to the general-purpose financaal statements \n \n-42 - \n \nGOVERNMENTAl FUND TYPES \n \nSPECIAl \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTAl \n \n$ \n \n772,41500 \n \n186,486 00 \n \n1,646,284 00 \n \n571,88000 \n \n998,24500 \n \n270,322.00 \n \n1,758,698.00 \n \n1,254,669 00 \n \n568,325.00 \n \n126,98000 223,994.00 953,20500 274,239.00 \n5.690.00 481,55200 \n84,067.00 129,67400 310,522.00 \n59,911 00 64,12950 1,951,92000 \n \n$ \n \n772,415.00 \n \n186,48600 \n \n1,646,284 00 \n \n571,88000 \n \n998,245.00 \n \n270,32200 \n \n1,756,69800 \n \n1,254,66900 \n \n588,325.00 \n \n126,980 00 223,994 00 953,20500 274,239.00 \n5,690.00 481,55200 \n84,06700 129,67400 310,522 00 \n59,911.00 64,12950 1,951,920 00 \n \n158,74800 543,44200 \n20,000.00 64,22500 15,066.00 25,15700 195,104 00 1,835,627 00 \n$ 118,27908 \n \n98,07200 \n \n35,00000 750 00 \n286,964 80 3,82500 \n164,000 00 4,85000 \n45,30200 50,673.20 32,69578 22,04703 \n \n75,00000 \n \n8,176.00 84,05000 \n \n158,74800 543,44200 \n20,00000 84,225.00 15,066 00 25,157.00 195,104 00 1,835,627.00 98,07200 118,27908 \n35,00000 75000 \n286,964 80 3,82500 \n164,000 00 4,85000 \n45,30200 50,67320 32,69578 22,04703 \n8,17600 84,05000 75,00000 \n \n4,81236 \n \n4,61236 \n \n28,109.00 \n \n28,109 00 \n \n6,24584 \n \n6,24584 \n \n$ 16,440.884 75 $ 196154384 $ 16,637,42859 \n \n WHITE COUNTY BOARP OF EpUCATION SCHEPULE OF APPROVEP LOCAL OPTION SALES TAX PROJECTS \nYEAR ENpEp JUNE 30 2002 \n \nSCHEDULE \"3\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \nPayments of pnrlClpal and Interest on the 1993 Bonds from February 1, 1999 to August 1, 2003 \n \nS 3,160,000.00 S 3,160,00000 S 624,48250 $ 1.407,82635 Ongoing \n \nAcqUisition, construction and eqUipping of a new elementary school and necessary furnIShings and eqUipment, Indudlng the acquISition of all necessary real or personal property and eqUipment, including computers and related technology, adding to, renovating, repairing, Improving and eqUipping existing educabonal bulldll1QS, properties and facdltl8s of the school dlStnd and expenses inCIdent thereto \n \n14,040,00000 12,500,00000 1,200,857.96 11,042,256.38 Completed \n \nAcquiSIbon, construebon and eqUipping one new elementary school, adding to, renovating, repalnng, Improving and eqUipping 8XIBbng school bUildings, acqulnng computers and computer technology eqUipment for the school system, and acqUISition of land for additional schools \n \n16,750,000.00 16,750,000 00 \n \n579,966 87 \n \nOngoIng \n \nPaYIng a portion of the prinCIpal and Interest due on the White County School DIstnct's Series 1993 General Obh!l;lltlon Bonds from August 1, 2003 through and Including February 1, 2008 \n \n2,250,00000 \n \n2,250,000 00 \n \nOngOIng \n \n$ 36,200,000 00 $ 34,660,00000 $ 2,405,307 33 $ 12,450,08273 \n \n(1) The School DlBlnd's ooglnal cost esbmate es speafiad In the resoIubon calling for the Imposition of the Local Optloo Sales Tax \n(2) The School Dlstnct's cumsnt eBbmate of total cost for the prqects Indudes all cost from pl'Ol8Cllncapbon to completron \n(3) The voters of White County approved the Imposition of a 1% sales tax to fund the above proJeds and retire assoaated debt Amounts expended for these pl'Of8Cls may Indude sales tax proceeds, state, local property taxes and/or other funds over the life of the PI'Oleds \n \nSee notes to the general-purpose financaal statements \n \n43 \n \n WHITE COUNTY BOARD OF EDUCATION \nGENERAL FUNp - gUALlTY BASIC EDUCAnON PROGRAM (gBEl ALLOTMENTS AND'EXPENDITURES - BY PROGRAM YEAR ENpED JUNE 30, 2002 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE aBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKmdergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPnmary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle SChool (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocabonal Laboratory (9-12) Program \n \nStudents with DIsabilities \n \ncategory I \n \ncategory II \n \ncategory III \n \nCategory IV \n \nGIfted Student - category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \n922,581.00 S 222,741,00 1,966,339.00 683,059.00 1,189,547.00 \n \n893,909.31 $ 237,959,09 1,979,250.13 684,n5.55 1,570,657 66 \n \n19,447.03 S 4,347.68 71,717.31 5,091.86 55,396.73 \n \n913,356,34 242,306.n 2,050,967 44 689,867.41 1,626,054.39 \n \n325,643.00 2,098,219.00 1,498,590.00 \n678,814.00 1,892,074.00 \n575,171.00 100,410.00 154,884.00 \n \n245,963.62 2,121,657.87 1,947,472.82 \n493,203.44 \n128,195.11 303,864.13 1,254,867.19 336,280.25 643,43649 121,865.70 \n85,958.11 \n \n124,443.09 118,940.25 118,646.14 \n3,243.32 9,446.32 33,482.95 10,884.60 24,263.31 \n966.65 103,55539 \n \n245,963.62 2,246,100.96 2,066,413.07 \n611,849.58 \n131,438.43 313,310.45 1,288,350.14 347,164.85 667,699.80 122,832.35 189,513.50 \n \nTOTAL DIRECT INSTRUCTIONAl PROGRAMS \n \n$ \n \n12,308,072.00 $ 13,049,316.47 S 703,872.63 $ 13,753,189.10 \n \nMedia Center Program Staff and Professional Development \n \n370,891.00 71,558.00 \n \n421,938.03 11,908.54 \n \n136,010.52 61,825.31 \n \n557,948.55 73,733.85 \n \nTOTAL aBE FORMULA FUNDS \n \n$ \n \n12,750,521.00 S 13,483,163.04 $ 901,70846 $ 14,384,871.50 \n \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nsee notes to the general-purpose financial statements \n \n44- \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTYBASIC EDUCATION PROGRAM (aBE) \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D. 2002 \n \nSCHEDULE \"5\" \n \nWhite County Intermediate School White County Middle School White County High School Jack P Nix Primary School White County Elementary School Central Office (Alternative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE aBE PROGRAM COSTS \n \n$ \n \n1.992,866.00 $ 2,329,353.66 \n \n2,847.953.00 \n \n3.184,765.43 \n \n3,056,316.00 \n \n3,467.117.82 \n \n2.322,369.00 \n \n2,527,143.57 \n \n1,933.684.00 \n \n2.055.295.12 \n \n154,884.00 \n \n189.513.50 \n \n$ 12,308.072.00 $ 13,753,189.10 \n \nsee notes to the general-purpose financial statements. \n- 45- \n \n .. \n \nSECTIONn \n \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUS1\\EI.L W. HINTON \nSTATE AUDITOR \n(404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S W., SUite 214 Atlanta, Georgia 30334-8400 \nMarch 20, 2003 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have 'audited the financial statements ofWhite County Board ofEducation as ofand for the year ended June 30,2002, and have issued our report thereon dated March 20, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2002YB-41 \n \n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters corning to our attention relating to significant deficiencies in,the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect White County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7541-02-0I. \n \nA material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7541-02-01 to be a material weakness. \n \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board of~ucation,Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \n \n.. \n \n- - ~ ~ Respectfully submitted, \n \nRus ell W. Hinton State Auditor \n \nRWH:gp 2002YB-41 \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS 254 Washmgton Slreet, S w., Suite 214 \nAtlanta. GeorgIa 30334-8400 \nMarch 20, 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliartce \nWe have audited the compliance ofWhite County Board ofEducation with the types ofcompliance \nrequirements described in the u.s. Office of Management and Budget (OMB) Circular A-133 \nCompliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circwnstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements. \n2002SA-IO \n \n In our opinion, the White County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~~ \nRus ell W. Hinton State Auditor \nRWH:gp 2002SA-IO \n \n .' \n \nSECTIONm \n \nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-00-01 FS-7541-01-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTIONIRESPONSES \n \nGENERAL FIXED ASSETS . Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7541-01-01 \n \nThe White County Board of Education had an appraisal done of all its assets at June 30, 2002 for future compliance with GASB 34 requirements. The School District adopted the policy to capitalize assets at $5,000.00. The Capital Assets Report was reported to the auditors a year ahead of Department of Education's required implementation schedule. The White County Board of Education is continuing to implement the requirements of .GASB34. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the White County Board of Education disclosed a financial statement reportable condition related to the following control category. \nGeneral Fixed Assets \nThe reportable condition described above is considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n4. Reportable Conditions in Internal Control Over Major Programs TPe audit report for the White County Board of Education did not disclose any reportable conditions in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The White County Board of Education's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.027 Individuals with Disabilities Education Act - Part B - Special EducationFlow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nI SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee \nThe White County Board ofEducation qualified as a low risk auditee as defined by Section .530 of OMB Circular A-133. \nn FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7541-02-01 The White County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide fQr maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2000-h2001","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"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.","Report year covers fiscal year.","Has supplements: White County Board of Education, Cleveland, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (White County Board of Education, Ga), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (White County Board of Education, Ga.), fiscal year ended June 30, 2008-","Fiscal year ended June 30, 2000, released in 2001; title from cover.","Fiscal year ended June 30, 2008, released in 2009."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","White County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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":null,"fulltext":" WHITE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nAND EXPENDABLE TRUST FUNDS \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD \n \nCOMBINED STATEMENT OF REVENUES, EXPENSES AND \n \nCHANGES IN FUND BALANCES \n \n. FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \n \n8 \n \nE \n \nCOMBINED STATEMENT OF CASH FLOWS \n \nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \n \n10 \n \nF NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n13 \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING AND INDIVIDUAL FUND STATEMENTS \n \nSPECIAL REVENUE FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n28 \n \nCAPITAL PROJECTS FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n30 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n31 \n \nDEBT SERVICE FUND \n \nK \n \nCOMBINING BALANCE SHEET \n \n32 \n \nL \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n33 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDmONAL FINANCIAL INFORMATION \n \nEXHIBITS \n \nCOMBINING AND INDNIDUAL FUND STATEMENTS \n \nFIDUCIARY FUND TYPES \n \nM \n \nCOMBINING BALANCE SHEET \n \n34 \n \nN \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nEXPENDABLE TRUST FUNDS \n \n36 \n \no \n \nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \n. AGENCYFUND \n \n. 37 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n38 \n \n2 SCHEDULE OF STATE REVENUE \n \n40 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n41 \n \nALLOTMENTS AND EXPENDITURES . \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n42 \n \n5 \n \nBY SITE \n \n43 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-X400 \nJanuary 15,2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements ofthe White Couuty Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe White County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we pIan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n200lARL-13 \n \n * The general-purpose financial statements of the Board of Education did not contain a ' \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. \n* School activity accounts maintained at the individual schools are not included in the \ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \n \n* The Board of Education did not recognize as expenditures, in the year ended \nJune 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services. completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and e?,penditures should be recorded when incurred, rather than when funds are received or disbursed. \n \n.The aggregate effects on the general-purpose financial statements of these variances or omissions \n \nhave not been determined, but are believed to be material. \n \n. \n \nIn our opinion, except for the effects on the 'general-purpose financial-statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe White County Board ofEducation as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \n \nIn accordance with Government Auditing Standards, we have also issued our report dated January 15, 2002, on our consideration of the White County Board of Education's internal c\u003c;mtrol 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. . \n \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe White County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits G through 0)' and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office ofManagement and Budg~t Circular A-133, Audits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general-purpose financial statements.. Such information has been subjected to the auditing \n \n200lARL-13 \n \n procedure~ applied in the audit ofthe general-purpose financial statements and in our opinion, except \nfor 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. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \nRespectfully submitted, \n \nRWH:as 2001ARL-13 \n \nRu ell W. Hinton State Auditor \n \n WHITE COUNTY BOARD OF EDUCATION \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE PROJECTS \n \nFUND \n \nFUND \n \n$ 2,548,029,96 $ 456,878,10 $ 701,632,05 \n \n352,762,16 \n \n84,085,38 \n \n16.659,30 13.389.11 \n \nTotal Assets \n \n$ 2.900,792,12 $ 571,011.89 $ 701,632.05 \n \nLIABILITIES AND FUND EqUITY \nLIABILITIES \nAccounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others General Obligation Bonds Payable. \nTotal Liabilities \nFUND EqUITY \nFund Balances Reserved For Continuation of Federal Programs For Debt Service \nForEndo~entCo~us \nFor Inventories Food Donated Commodities Purchased Food \nFor Pu~ose of Bond Issue Unreserved \nDesignated for Scholarships Undesignated \nTotal Fund Equity \n \n$ 11,954.54 $ 32,615.97 42,219.54 122,285.99 558,85 \n$ 54,174.08 $ 155,460,81 \n$ 29.040.32 \n16.659,30 13.389.11 \n$ 2,846.618,04 356,462.35 $ 701,632.05 $ 2,846,618.04 $ 415,551.08 $ 701,632.05 \n \nTotal Liabilities and Fund Equity \n \n$ 2,900,792,12 $ 571,011.89 $ 701,632.05 \n \nThe notes to the general-pu~osefinancialstatements are an integral part of this statement -2- \n \n EXHIBIT ';A\" \n \nDEBT SERVICE \nFUND \n \nFIDUCIARY FUND TYPES TRUST AND' AGENCY FUNDS \n \n$ \n \n5;845.66 $ \n \n10,226.16 \n \n2,984,838.41 \n \n23,541.85 \n \n453,557.28 \n \nACCOUNT GROUP \nGENERAL LONG-TERM \nDEBT \n \nTOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000 \n \n$ 3,722,611.93 $ 5,440,210.89 \n \n3,008,380.26 \n \n2,238,174.57 \n \n890,404.82 \n \n844,565.95 \n \n$ 3,444,231.45 \n \n16,659.30 13,389.11 \n3,444,231.45 \n \n17,125.79 14;920.55 \n3,177,404.83 \n \n8,260,768.55 \n \n8,260,768.55 10,517,595.17 \n \n$ 3,444.241.35 $ \n \n33,768.01 $ 11.705,000.00 $ 19,356,445.42 $ 22,249,997.75 \n \n$ \n \n44,570.51 $ \n \n49,434.65 \n \n164,505.53 \n \n168,896.94 \n \n558.85 \n \n7,756.17 \n \n547,528.00 . \n \n302,555.80 \n \n$ \n \n497.83 \n \n497.83 \n \n825.32 \n \n$ 11,705,000.00 \n \n11,705,000.00 \n \n13,695,000.00 \n \n$ \n \n497.83 $ 11,705,000.00 $ 11,915,132.72 $ 14,771,996.88 \n \n$ 3,444,241.35 $ \n \n23,500.00 \n \n0.00 $ 3.444.241.35 $ \n \n9,770.18 0.00 \n33.270.18 \n \n$ \n \n29,040.32 $ \n \n3,699.24 \n \n3,444,241.35 \n \n3,177,404.83 \n \n23,500.00 \n \n23,500.00 \n \n16,659.30 13,389.11 \n \n17,125.79 14,920.55 775,291.94 \n \n9,770.18 3.904,712.44 \n \n8,404.35 3,457,654.17 \n \n$ 7.441,31~.70 $ 7,478,000.87 \n \n$ 3,444,241.35 $ \n \n33,768.01 $ 11 ,705.000.00 $ 19,356,445.42 $ 22.249,997.75 -3- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instrudional 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 \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food . \n \nGENERAL FUND \n \nGOVERNMENTAL FUND \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 12,840,097,83 $ 192,260,00 \n \n976,90 1,523,207,04 \n \n7,621,081,62 \n \n610,508,57 \n \n579,032.45 $ \n \n$ 21 ,072,664.92 $ 2,294,499.49 $ \n \n44,149.69 44,149.69 \n \n$ 14,447,867.12 $ 832,492.47 \n \n346,582.83 658,123.68 567,151.65 416,821.17 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12 \n84,879.50 33,937.41 \n524.75 16,466.40 \n \n114,052.76 41,139.59 27,044.99 \n1,236,799.61 $ \n \n794,990.27 \n \n$ 20,667,687.00 $ 2,251,529.42 $ 794,990.27 $ 404,9n.92 $ 42,970.07 $ -750,840.58 \n \n$ \n \n74,855.68 $ \n \n6,699.85 \n \n-6,699.85 \n \n-1,555.68 $ -73,300.00 \n \n$ \n \n68,155.83 $ \n \n5,144.17 $ -73,300.00 \n \n$ 473,133.75 $ 48,114.24 $ -824,140.58 \n \n2,373,484.29 \n \n369,434.n \n \n1,525,n2.63 \n \n-466.49 -1,531.44 \n \nFUND BALANCE JUNE 30 \n \n$ 2,846,618.04 $ 415,551.08 $ \n \nThe notes to the general-purpose financial statements are an integral part of this statement. \n \n-4- \n \n701,632.05 \n \n EXHIBIT\"B\" \n \nTYPES DEBT \nSERVICE FUND \n \nTOTAL \n \nFIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \n$ 13,032,357.83 \n \n. 1,524,183.94 \n \n$ 2,743,553.83 10,364,635.45 \n \n104,681.94 \n \n1,338,372.65 $ \n \n$ 2,848,235.77 $ 26,259,549.87 $ \n \n$ 13,032,357.83 $ 11,610,~17.31 \n \n1,524,183.94 \n \n1,568,730.01 \n \n10,364,635.45 \n \n9,928,824.79 \n \n1,356.56 \n \n1,339,729.21 \n \n1,410,224.09 \n \n1,356.56 $ 26,260,906.43 $ 24,518,596.20 . \n \n$ 15,280,359.59 \n \n460,635.59 699,263.27 567,151.65 443,866.16 $ ,1,312,739.00 212,108.50 1,529,008.87 1,041,476.12 \n84,879.50 33,937.41 1,237,324.36 811,456.67 \n \n$ 1,990,000.00 586,841.25 4,558.00 \n \n1,990,000.00 586,841.25 4,558.00 \n \n$ 2,581,399.25 $ 26,295,605.94 $ \n \n$ 266,836.52 $' -36,056.07 $ \n \n$ 15,280,359.59 $ 13,329,406.80 \n \n1,500.00 \n \n460,635.59 699,263.27 567,151.65 445,366.16 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12 \n84,879.50 33,937.41 1,237,324.36 811,456.67 \n \n784,444.35 818,208.25 557,443.79 354,574.12 1,166,467.96 156,024.01 1,348,897.94 958,474.57 23,487.62 128,630.66 1,068,828.06 5,277,995.29 \n \n1,990,000.00 586,841.25 4,558.00 \n \n1,705,000.00 661,167.50 \n \n1,500.00 $ 26,297,105.94 $ 28,339,050.92 \n \n-143.44 $ . -36,199.51 $ -3,820,454.72 \n \n$ \n \n81,555.53 \n \n-81,555.53 \n \n$ \n \n0.00 \n \n$ \n \n81,555.53 $ 175,025.78 \n \n-81,555.53 \n \n-175,025.78 \n \n$ \n \n0.00 $ \n \n0.00 \n \n$ 266,836.52 $ -36,056.07 $ \n \n3,177,404.83 \n \n7,446,096.52 \n \n-143.44 $ -36,199.51 $ -3,820,454.72 \n \n2,265.06 \n \n7,448,361.58 11,278,547.44 \n \n-466.49 \n \n-466.49 \n \n-12,409.93 \n \n-1,531.44 \n \n-1,531.44 \n \n2,678.79 \n \n\\-~ \n \n$ 3,444,241.35 $ 7,408,042.52 $ \n \n2,121.62 $ 7,410,164.14 $ 7,448,361.58 \n \n-5- \n \n \", \n \n~, \n \nWHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUr.m BALANCES \nBUDGET ANpACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 2001 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \n \nState Funds Federal Funds . Taxes Other Funds \n \n$ 11,599,771.00 $ 12,840,097,83 \n \n200,000,00 \n \n976,90 \n \n7,206,674,00 \n \n7,621,081.62 \n \n338,000.00 \n \n610,508,57 \n \nTotal Revenues \n \n$ 19,344,445.00 $ 21,072,664.92 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services central Support Services Other Support Services Food Services Operation \nCapital Outlay \n \n$ 14,091;053,97 $ 14,447,867,12 \n \n408,227.00 728,886.00 558,161.00 465,363.00 1,373,999,00 207,991,00 1,694,456.00 1,076,125.00 \n27,150.00 20,000.00 \n \n346,582.83 658,123,68 567,151.65 416,821.17 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12 \n84,879.50 33,937.41 \n524.75 16,466.40 \n \nTotal Expend!~ures \n \n$ 20,651,411.97 $ 20.667.687.00 \n \nExcess of Revenues over (under) Expenditures \n \nS -1,306,966,97 S 404.977.92 \n \nOTHER FINANCING SOURCES IUSES) \n \nOther Sources Other Uses \n \nS \n \n74,855,68 \n \n-6,699.85 \n \nTotal Other Financing Sources (Uses) \n \nS \n \n68,155.83 \n \nExcess of Revenues and Other Financing Sources \nover (under) Expenditures and Other Financing Uses S -1,306,966.97 S \n \n473,133.75 \n \nFUNp BALANCE JULY 1. 2000 \n \n2,154,326,70 \n \n2,373,484.29 . \n \n. Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ 143,413,00 $ 192,260.00 \n \n1,408.068.00 \n \n1.523,207,04 \n \n562,315.00 \n \n579,032.45 \n \n$ 2,113,796.00 $ 2.294,499.49 \n \n$ 768,695.00 $ 832,492.47 \n \n101,902.00 44,390.00 \n \n114,052.76 41,139.59 \n \n32,260.00 \n \n27,044.99 \n \n631.00 \n \n1,146,305.00 \n \n1,236,799,61 \n \n$ 2.094.183.00 $ 2,251,529,42 $ 19,613.00 $ 42,970.07 \n \n$ \n \n6,699.85 \n \n-1,555.68 \n \n$ \n \n5,144.17 \n \n$ 19,613.00 $ 48,114,24 \n \n402,678.36 \n \n369,434.77 \n \n-2,817,86 \n \n-466.49 -1,531.44 \n \nFUND BALANCE JUNE 30. 2001 \n \nS 847,359.73 $ 2,846,618.04 \n \n$ \u003e419,473.50 $ 415,551.08 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -7- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENSESA~D C!\"lANGES IN FUND BALANCES \nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \nYEAR ENDED JUNE 3D, 2001 \n \nOPERATING REVENUES Donations \nOPERATING EXPENSES Current Support Services General Administration Operating Income \nNONOPERATING REVENUES Interest Earned Net Income \nFUND BALANCE JULY 1 \n \nFIDUCIARY FUND \n \nNONEXPENDABLE TRUST \n \nINDA YVONNE \n \nJULIA AND \n \nALLEN \n \nHARWELL \n \nMINORITY \n \nWESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \n.$ \n \n561.54 $ \n \n0.00 \n \n$ \n \n0:00 $ \n \n$ \n \n561,54 $ \n \n867.29 \n \n$ \n \n1,428.83 $ \n \n19,469,81 \n \n0.00 0.00 \n0.00 0.00 1,041.85 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n20,898.64 .$ ====1:!::,O4===.1.8..5. = \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -8- \n \n EXHIBIT\"D\" \n \nTYPE FUNDS \nVERA WESTMORELAND \nSCHOLARSHIP \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \n$ \n \n0.00 $ \n \n561.54 $ _ _---\"5~94\"\"'\".=25;;... \n \n$ \n \n300.00 $ \n \n300.00 $ _ .........~1J.::,5:.:::.08::.:..;..:75=- \n \n$ \n \n-300.00 $ \n \n261.54 $ \n \n-914.50 \n \n380.44 \n \n1,247.73 \n \n1,256.70 \n \n$ \n \n80.44 $ \n \n1,509.27 $ \n \n342.20 \n \n9,127.63 \n \n29,639.29 \n \n29,297.09 \n \n$ \n \n9,208.07 $ \n \n31,148.56 $===29...,.6:=3=9.=2.9.. \n \n-9- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \nYEAR ENDED JUNE 30, 2001 \n \nCash \"Flows from Operating Activities: Cash Received from Donations Cash Paid for Scholarships \nNet Cash Provided (Used) by Operating Activities \nCash Flows from Investing Activities: Interest Received on Investments \nNet Cash Provided by Investment Activities \nNet Increase (Decrease) in Cash \nCash and Cash Equivalents - July 1 \nCash and Cash Equivalents - June 30 \n \nFIDUCIARY FUND \n \nNONEXPENDABLE TRUST \n \nINDA YVONNE \n \nJULIA AND \n \nALLEN \n \nHARWELL \n \nMINORITY \n \nWESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \n$ \n \n561.54 $\" \n \n0.00 \n \n$ \n \n561.54 $ \n \n-0= .00~ \n \n-;\"::\"'l \n \n$ \n \n'\"S \n867.29 $,_,_ ,/1-;::/ -_-0=.0=0- \n \nL,. \n \n$ \n \n867.29 $,_~....\"......0_-.0=0=- \n \nv'/\\;. \n \n$ \n \n1,428.83 $ 4.969.81 \n \n1/-1\\ 6 i \nU ' 1,) \n \n0.00 0.00 \n \n'-,, ~.P \n \n1ifr;. \n \n$ \n \notA \\!;) \n \n0.00 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. - 10- \n \n'1J~ () ;6\u003c1\\) \n'1,) 1 ,( \n\"b 1v \nV :;. I\\.-(\\)/ '1 J \n0 \\''-}V~II \n'-)0, I \n'J r I \n\\-t{ i\u003e \n\\)0\\'? D \n'1,1, ill ~ \n'tl J ''GJ ~ \n \n EXHIBIT\"E\" \n \nTYPE FUNDS \nVERA \nWESTMORELAND SCHOLARSHIP \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n561.54 $ \n \n594.25 \n \n$ \n \n-300.00 \n \n-300.00 \n \n-1,508.75 \n \n$ \n \n-300.00 $ \n \n261.54 $ \n \n-914.50 \n \n$ \n \n380.44 $ \n \n1,247.73 $ \n \n1,256.70 \n \n$ \n \n380.44 $ \n \n1,247.73 $ \n \n1,256.70 \n \n$ \n \n80.44 $ \n \n1,509.27 $ \n \n342.20 \n \n1,127.63 \n \n6,097.44 \n \n5,755.24 \n \n$ \n \n1,208.07 $ \n \n7,606.71 $ ======,,;6=,0=97=.44== \n \n-11 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nREPORTING ENTITY \n \nThe White County Board ofEducation (School District) was established under the laws ofthe State of Georgia. and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subj ect to approval by any other entity. Accordingly, the School District is a primary government arid consists of all the organizations that compose its legal entity. \n \nFUND ACCOUNTING \n \nThe School District uses funds and an account group to report'on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \n \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. \n \nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial state~ents. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. \n \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under 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: \n \nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School Oistrict's educational activities. Governmental Fund Types include: \n \nGENERAL FUND - the fund used to account for all financial resources of the School District \n \nexcept those required to be accounted for in another fund. These transactions relate to resources \n \nobtained and used for services provided by a board of education. \n \n. \n \n-13 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for inajor 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 o~jectives. \n \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \n \n.DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \n \nFIDUCIARY FUND TYPES - the funds used to account for assets held by a governrnent unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: \n \nNONEXPENDABLE TRUST FUNDS Inda Yvonne Allen Minority Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to minority graduating seniors of the White County High School. \n \nJulia and Harwell Westmoreland Citizenship Fund - the fund, used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide an award to a male and female student selected by the senior class each year, \n \nVera Westmoreland Scholarship Fund-the fund used to account for an endowment ofwhicb the CQrpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid each year, to a deserving senior who has been accepted to college. \n \nEXPENDABLE TRUST FuNDS Libby Alexander Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a deserving student. \n \nLion's Club Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a graduating senior who has been accepted by a post secondary institution. \n \nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other \n \nfunds, governments, or individuals, \n \n. \n \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP ~ A financial reporting device used to account for general obligation debt outstanding, . \n- 14- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nBASIS OF ACCOUNTING \n \nThe accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resour~es measurement focus, With this measurement focus, only current assets and current liabilities generally are. included on the balance sheet. Operating statements ofthese funds present \nincreases (i.e\" revenues and other financing sources) and decreases (i.e., expenditures and other \nfinancing uses) in net current assets. Their reported fund balance is considered a measure of \navailable spendable resources, \n \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. \n \n. All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus, With this measurement focus, all assets and liabilities associated with the operation ofthese .funds are included on the balance sheet. Operating statements present increases (e.g\" revenues) and decreases (e,g\" expenses) in net total assets, \n \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \n \nGovernmental and expendable trust funds are accounted for using the modified accrual basis of \n \naccounting under which: \n \n. \n \nRevenues are recognized when susceptible to accrual (i.e\" when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value Without directly receiving (or giving) equal value iIi exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \n \nExpenditures are generally recognized when the related fund liability is incurred. \n \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 \n \n- 15 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nemployment 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 200 I\\.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. \n \nThe accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized \n \nby nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when \n \nearned and expenses are recorded at the time liabilities are incurred. \n \n. \n \n. \n \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. . \nI. \nBUDGET \n \nThe White County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. . There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget . for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \n \nThe budget process begins when the School District's administration prepares a tentatjve budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education' Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \n \nCASH AND CASH E~UIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash onh3nd, demand deposits and short-tenn investments with original maturities of three months or\" less from the date of acquisition in authorized financial \n \n- 16- \n \n \\\" \n \n1 -; \n \nWHITE COUNTY BOARD OF EDUCAnON \n \nEXHIDIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \ninstitutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or iQ.Sured Federal savings and loan associations. \n \nINVESTMENTS \n \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofretUrn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n(2) Obligations issued by the United States government, \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any ,?orporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist ofgrant reimburSements due on Federal, State or other grants for expenditures \n \nmade but not reimburs~and other receivables disclosed from information available. Receivables \n \nare recorded when either the asset or revenue recognition criteria has been met. Receivables \n \nrecorded on the general-purpose financial statements do not include any amounts which would \n \nnecessitate the need for an allowance for uncollectible receivables. \n \n. \n \n- 17 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHmIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe White County Board of Commissioners fixed the property taX levy for the 2000 tax year (calendar year) on October 13, 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 White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2,5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $7,497,538.08 and for school bonds amounted to $263,068.05. \n \nTax millage rates levied for the 2000 tax year (calendar year) for the White County Board of Education'were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.470 mills .488 mills \n \n14.958 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax isto be used for capital outlay for educational purposes and debt service, Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,478,664,19 and was recorded in the Debt Service Fund. The State will terminate collection of this taX once an additional $9,356,633,58 has been collected or on December 31, 2002, whichever occurs first. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories ofdonated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even. though they are a component of net current assets, \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and, construction ofmajor capital facilities, Bond premiums and discounts, as well as issuance cos~, are \n \n- 18- \n \n I l l ' .' \n \nWHITE COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nrecognized in the financial statements during the ye'ar bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \nINTERFUND TRANSACTIONS \nThe School District has the following types of interfund transactions: \nReimbursements ofexpenditures/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. \nOperating transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY -TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facili.tate fm~cial 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 of this data. \nNote 2: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of anyone of or any combination ofthe following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n-19 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIDIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(3) \"Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and.interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. . \n \nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $4,361,623.78. The amounts ofthe,total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e,g\" Federal depository insurance) or collateralized with . securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name, \n. Category 3 - Uncollateralized deposits. (This includes ~y bank balance that is collateraliZed with securities held by the pledging financial institution, or by its trust dep~ent or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \n \nRisk Category' \n \nBank Balance \n \n1 \n \n$ 136,376,26 \n \n2 \n \n4,225,247.52 . \n \n3 \n \n0.00 \n \nTotal \n \n$ 4.361.623,78 \n \n- 20- \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHIBIT\"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments waS $2,984,838.41 which is materially the same as fair value. \n \nType of Investment \n \nCaiTying Amount \n \nFair Value \n \nInvestments not Subject to Categorization: \n \nLocal Government \n \n'. \n \nInvestment Pools \n \nMutual Funds \n \nMoney Market Account . \n \n$ 2,984,837,62 $ 2,984,837,62 \n \n.79 \n \n.79 \n \nTotal Investments \n \n$ 2,984,838.41 $ 2,984,838.41 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State \n \nofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable \n \nsecurities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for \n \n. the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for \n \ninvestment in derivatives or similar investments, A description ofthe Primary Liquidity Portfolio is \n \nas follows: \n \n' \n \n. \n \n, The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6, Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds, The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7likepool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1,00 per share value), Net asset value is calculated weekly to ensure stability, The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1,00 per share, Pooled cash and cash equivalents and investments are reported at cost which approximates fair value, The pool does'not issue any legally binding guarantees to support the value of the shares, Participation in the pool is voluntary and deposits consist of funds from local governments; , operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds, of the State of Georgia's General Fund, \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S, Treasury obligations. securities issued or guaranteed as to principal and interest by the U. S, Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements, ,The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days, The average investment duration for Fund 6 on June 30, 2001, was 6 months. \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"F\" \n \n'NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1,. Inventories \nNote 4: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injUries to employees; natural disaster and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by . the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. 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 years. \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges iIi the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2000 2001 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n2,832.00 $ \n \n2,832.00 $ \n \n0.00 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District \nan pays an annual premium to the Fund for its general insurance coverage. Additional insurance \ncoverage is provided through agreement by the Fund with the United States Fidelity and Guaranty .Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \n- 22- \n \n .. , \n \nWHITE COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 4: RISK MANAGEMENT \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Employee Blanket Bond \n \n$ 50,000.00 $ 100,000.00 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1993 General Government - Series 1997 \n \n3.10% - 5.55% . $ 5,890,000.00 3.80% - 4.30% 5,815,000.00 \n \n$ 11.705.000.00 \n \nOn June 19,2001; voters authorized $9,230,000.00 in general obligation debt for the purpose of(i) acquiring, constructing and equipping one new elementary school, (ii) adding to, renovating, repairing, improving, and equipping existing school buildings, (iii) acquiring computers and computer technology equipment for the school system, and (iv) acquisition of land for additional schools. These general obligation bonds were issued on August 23, 2001. \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \n \nGeneral Obligation \nBonds \n \nBalance July 1, 2000 \n \n$ 13,695,000.00 \n \nDeductions Debt Retired \n \n1,990,000.00 \n \nBalance June 30, 2001 \n \n$ 11.705,000.00 \n \nAt June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 23- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 5: GENERAL LONG-TERM DEBT \nFiscal Year Ended June 30 \n2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 \nTotal Principal and Interest \n \nGeneral Obligation \nBonds \n$ 2,725,213.75 2,896,308.75 2,432,500.00 . 622,532.50 624,141.25 3,150,540.00 1,893,878.75 \n$14.345,115.00 \n \nNote 6: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of $335,867.50 for health insurance and retirement contributions paid on the School District's behalfby the following . State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel \nmthe amount of $272,975.38 \n \nPaid to the Teachers Retirement System or\"Georgia For Teachers Retirement System. (TRS) Employer's Cost In the amount of$21,600.12 \n \nOffice ofTreaSury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost \nIn the amount of $41,292.00 \n \nNote 7: CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such . disallowances, if any, will be immaterial to its overall financial position. \n \n- 24- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHmIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 7: CONTINGENT LIABILITIES \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable. but is not believed to be material to the general-purpose financial statements. \n \nNote 8: RETIREMENT PLANS . \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers. administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS). which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement. disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained ,from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board 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 pscal year and the preceding two fiscal years are as follows: \n \nFiscal Year ' \n \nPercentage Contributed \n \nRequired Contribution \n \n2001 2000 1999' \n \n100% 100% 100% \n \n$ 1,429.726.47 $ 1.278.955.59 $ 1,248,249.35 \n \n- 25- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 \n \nASSETS \nCash and Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTIERY PROGRAMS \n \n$ 439,677.45. $ \n \n0.00 \n \n16,659.30 13,389.11 \n \nTotal Assets \n \n$ 469,725,86 $===0=:.=00... \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories FoodDonated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \nTotal Liabilities and Fund Equity \n \n$ 16,569.24 66,645.86 \n$ 83,215.10 \n \n$ 16,659.30 13,389.11 \n \n356,462.35 $ \n \n0.00 \n \n$ 386,510.76 $ \n \n0.00 \n \n$ 469,725.86 $====0'=00= \n \nSee notes to the general-purpose financial statements. - 26- \n \n EXHIBIT\"G\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS JUNE 3D, 2001 JUNE 3D, 2000 \n \n$ 17,200.65 $ \n \n0.00 $ 456:878.10 $ 400,810.99 \n \n84,085.38 \n \n84,085.38 \n \n138,518.81 \n \n16,659.30 13,389.11 \n \n17,125.79 14,920.55 \n \n$ 101,286.03 $====0.=00= $ 571,011.89 $ 571,376.14 \n \n$ 16,046.73 55,640.13 558.85 \n$ 72,245.71 \n \n$ \n \n33,373.17 \n \n$ \n \n32,615.97 \n \n36,648.95 \n \n122,285.99 .. \n \n126,598.84 \n \n558.85 \n \n5,320.41 \n \n$ 155,460.81 $ 201,941.37 \n \n$ 29,040.32 \n0.00 $ $ 29,040.32 $ \n \n$ \n \n29,040.32 $ \n \n3,69g,24 \n \n0.00 0.00 $ \n \n16,659.30 13,389.11 \n356,462.35 \n415,551.08 $ \n \n17,125.79 14,920.55 \n333,689.19 \n369,434.77 \n \n$ 101,286.03 $ ====0'=00= $ 571,011.89 $ ======57...1.,,3=76=..1.4. = \n \n- 27- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Student Transportation Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory Net Change in Period . Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTIERY PROGRAMS \n \n$ \n \n89;298.00 $. 65,413.00 \n \n. 591 ;242.32 \n \n579,032.45 \n \n$ 1.259,572.77 $ 65,413.00 \n \n$ 65,430.91 \n \n$ 1,236,799.61 \n \n$ 1,236,799.61 $ \n \n$ \n \n22,773.16 $ \n \n65,430.91 -17.91 \n \n'$ \n \n'17.91 \n \n$ \n \n17.91 \n \n\u003c' \n \n$ \n \n22.773.16 $ \n \n0.00 \n \n365.735.53 \n \n0.00 \n \n-466.49 -1,531.44 \n \n$ 386,510.76 $===0=:.0=0.... \n \nSee notes to the general-purpose financial statements. 28 - \n \n EXHIBIT\"H\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS YEAR ENDED JUNE 30. 2001 JUNE 30. 2000 \n \n$ $ 931.964.72 \n$ 931,964.72 $ \n \n37,549.00 $ \n \n192,260.00 $ 1.523.207.04 \n579,032.45 \n \n217,309.91 1,565,419.52 \n548.549.95 \n \n37.549.00 $ 2.294.499.49 $ 2,331.279.38 \n \n$ 733.975.65 $ \n114,052.76 36.668.23 27,044.99 \n \n$ 911.741.63 $ \n \n$ \n \n20,223.09 $ \n \n33,085.91 $ 832.492.47 $ 937,232.85 \n \n4,471.36 \n \n114.052.76 41,139.59 27,044.99 \n1.236.799.61 \n \n162.015.51 42,440.25 27.201.76 \n30.06 1,057.611.51 \n \n37,557.27 $ 2,251 ,529.42 $ 2,226,531.94 \n \n-8.27 $ \n \n42,970.07 $ 104.747.44 \n \n$ \n \n6,673.67 $ \n \n-1.555.68 \n \n$ \n \n5,117.99 $ \n \n$ \n \n25,341.08 $ \n \n3,699.24 \n \n8.27 $ 8.27 $ \n \n6,699.85 $ -1.555.68 \n5.144.17 $ \n \n37,425.78 37.425.78 \n \n0.00 $ 0.00 \n \n48,114.24 $ 369,434.77 \n \n142,173.22 236,992.69 \n \n-466.49 -1.531.44 \n \n-12,409.93 2.678.79 \n \n$ \n \n29.040.32 $ \n \n0.00 $ 415.551.08 $ ====36=9=:,4=34,;,;,.7=7= \n \n. - 29- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001 \n \nEXHIBIT \"I\" \n \nASSETS Cash and Cash Equivalents \n \nREGULAR \n \nBOND PROCEEDS \n \nTOTALS JUNE 30, 2001 JUNE 30, 2000 \n \n$ 701,632.05 $ \n \n0.00 $ 701,632.05 $ 2,375,856.43 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nContracts Payable Retainages Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated \nTotal Fund Equity \n \n$ 701,632.05 $ $ 701,632.05 $ \n \n$ 547,528.00 302,555.80 \n$ 850,083.80 \n \n0.00 $ 0.00 $ \n \n$ \n \n775~291.94 \n \n701,632.05 \n \n750,480.69 \n \n701,632.05 $ . 1,525,772.63 \n \nTotal Liabilities and Fund Equity \n \n$ 701,632.05 $ \n \n0.00 $ 701,632.05 $ 2,375,856.43 \n \nSee notes to the general-purpose financial statements. \n \n-30- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \n \n. \n \n, \n \nCAPITAL PROJECTS FUND \n \nYEAR ENDED JUNE 30, 2001 \n \nEXHIBIT \"J\" \n \nREGULAR \n \nBOND PROCEEDS \n \nTOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \nREVENUES \n \nOther Funds \n \n$ 24,451.36 $ 19,698.33 .$ \n \n44,149.69 $ 230,135.88 \n \nEXPENDITURES \n \nCurrent Support Services Business Administration \n. Capital Outlay Building and Building Improvements Equipment \n \n$ \n \n3,175.00 \n \n$ \n \n0.00 $ 659,990.27 $ 659,990.27 \n \n5,264,453.03 \n \n135,000.00 \n \n135,000.00 \n \nTotal Expenditures \n \n$ \n \n0.00 $ 794,990.27 $ 794,990.27 $ 5,267,628.03 \n \nExcess of Revenues over (under) Expenditures \n \n$ 24,451.36' $ -775,291.94 $ -750,840.58 $ -5,037,492.15 \n \nOTHER FINANCING SOURCES (USES) \n \nOperating Transfers In Operating Transrers Out \n \n$ -73,300.00 \n \n$ 137,600.00 $ -73,300.00 \n \nTotal Other Financing Sources (Uses) \n \n$ -73,300.00 \n \n$ -73,300.00 $ 137,600.00 \n \nExcess of Revenues and Other Financing Sources over (iJnder) Expenditures and Other Financing Uses $ -48,848.64 $ ~775,291.94 $ \n \n-824,140,58 $ -4,899,892.15 \n \nFUND BALANCE JULY 1 \n \n750,480.69 \n \n775,291.94 \n \n1,525,772.63 \n \n6,425,664.78 \n \nFUND BALANCE JUNE 30 \n \n$ 701,632.05 $ \n \n0.00 $ 701,632.05 $ 1,525,772.63 \n \nSee notes to the general-purpose financial statements. \n \n- 31 - \n \n ASSETS Cash and Cash Equivalents Investments' Accounts Receivable \nTotal Assets \n \nWHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 \n \nEXHIBIT\"K\" \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 . \n \n$ 1,222,965.25 \n \n$ 1,222,965.25 $ \n \n706,042.96 \n \n$ \n \n2,984,838.41 \n \n2,984,838.41 \n \n2,214,632.72 \n \n10,470.30 \n \n443,086.98 \n \n453,557.28 \n \n421,515.00 \n \n$ 1,233,435.55 $ \n \n3,427,925.39 $ 4,661,360.94 $ 3,342,190.68 \n \nTotai Liabilities and Fund Equity $ 1,233,435.55 $ \n \n3,427,925.39 $ 4,661,360.94 $ 3,342,190.68 . \n \nSee notes to the general-purpose financial statements. \n \n~32- \n \n WHITE COUNTY BOARD OF EpUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nDEBT SERVICE FUND YEAR ENDED JUNE 30, 2001 \n \nEXHIBIT \"L\" \n \nFUND BALANCE JUNE 30 \n \n$ 1,233.435.55 $ 2,210,805,80 $ 3.444,241.35 $ 3,177.404.83 \n \n. see notes to the general-purpose financial statements. \n \n- 33- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES \nJUNE 30. 2001 \n \nASSETS Cash and Cash Equivalents Investm.e, nts \n \nNONEXPENDABLE TRUST FUNDS \n \nENDOWMENT FUNDS \n \nINDA YVONNE \n \nJULIA AND \n \nALLEN \n \nHARWELL \n \nVERA \n \nMINORITY \n \nWESTMORELAND WESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \nSCHOLARSHIP \n \n$ \n \n6,398.64 \n \n$ \n \n1,208.07.. \n \n14,500.00 $ _ _-.:.1J..l::,O~4.:..:.1.:::::85::.. \n \n8,000.00 \n \n. Total Assets \n \n$ \n \n20,898.64 $ \n \n1,041.85 $ =====95,2;;:;08=.0::.;7= \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nFunds Held for Others \n \nFUND EQUITY \n \nFund Balances Reserved \nForEndovwnentCo~us \nUnreserved Designated for Scholarships Undesignated \n \n$ \n \n14,500.00 $ \n \n6,398.64 0.00 \n \nTotal Fund Equity \n \n$ \n \n20,898.64 $ \n \n1,000.00 $ \n \n8,000.00 \n \n41.85 0.00 \n \n1,208.07 0.00 \n \n1,041.85 $ _ _---=:9.c,2~08::.:..0;:;.:7~ \n \nTotal Liabilities and Fund Equity \n \n$ \n \n20,898.64 $ \n \n1,041.85 $ =====9:5,2=0=:8..0.7. ;... \n \nSee notes to the general-pu~ose financial statements. - 34- \n \n EXHIBIT\"M\" \n \nEXPENDABLE TRUST FUNDS \n \nLIBBY ALEXANDER \n \nLION'S CLUB \n \nSCHOLARSHIP \n \nSCHOLARSHIP \n \nFUND \n \nFUND \n \nAGENCY FUNDS \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30. 2000 \n \n$ \n \n2.070.62 $ \n \n51.00 $ \n \n497.83 $ \n \n10,226.16 $ \n \n9.187.82 \n \n23,541.85 \n \n23,541.85 \n \n$ \n \n2.070.62 $ \n \n51.00 $ \n \n497.83 $ \n \n33,768.01 $ ==3=2=.7=2=:9.=67= \n \n$ \n \n497.83 $ \n \n497.83 $ _ _~8:.=2::.:.5.::32=- \n \n$ \n \n2.070.62 $ \n \n51.00 \n \n0.00 \n \n0.00 \n \n$ \n \n2.070.62 $. \n \n.:::.51.:.:.:.0:;:0:... \n \n$ \n \n23.500.00 $ \n \n23.500.00 \n \n9,770.18 0.00 \n \n8,404.35 0.00 \n \n$ \n \n33.270.18 $ _---'3;:;..;1\"\"\".9=04..:.;.=35:;,.. \n \n$ \n \n2,070.62 $ \n \n51.00 $ \n \n497.83 $ \n \n33.768.01 $==3=2=,7=2=:9.=67= \n \n- 35-. \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nFIDUCIARY FUND TYPE  EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2001 \n \nEXHIBIT \"N\" \n \nFUND BALANCE JUNE 30 \n \n$ \n \n2,070,62 $ \n \n51.00 $ \n \n2,121,62 $==.::2~,2=65=,O~6= \n \nsee notes to the general-purpose financial statements. \n \n36- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENTOF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2001 \n \nEXHIBIT \"0\" \n \nBUS DRIVERS' ASSOCIATION ASSETS \nCash and Cash Equivalents \nLIABILITIES  Funds Held for Others \n \nBALANCE JULY 1, 2000 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2001 \n \n$ \n \n825.32 $ \n \n420.00 $ \n \n747.49 $ \n \n497.83 \n \n$ \n \n825.32 $ \n \n420.00 $ \n \n747.49 $ ====4.9.7.;,,;;.8;:;;3= \n \nSee notes to the general-purpose financial statements. \n \n- 37- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2001 \n \nSCHEDULE.\"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY 10 \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgriculture, U. S, Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \n \n.. 10,553 10.555 \n \nN/A $ NlA \n \n119,225.58 403,925.90 $ \n \n(2) 1,168,708.77 (3) \n \nTotal Child Nutrition Cluster \n \n$ \n \n523,151.48 $ 1,168,708.77 \n \nOther Programs \n \nPass-Through From Georgia Department of Education', \n \nFood and Nutrition Program. \n \nFood Distribution Program (1) \n \n10,550 \n \nNlA \n \nPass-Through From Office of Treasury and Fiscal services \n \nNational Forest Reserve Funds \n \n10,665 \n \nNlA \n \n68,090,84 976.90 \n \n68,090,84 (4) \n \nTotal U, S, Department of Agriculture \n \n$ \n \n592,219,22 $ 1,236,799.61 \n \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B  Special Education Flow Through Preschool \n \n84,027 84.173 \n \nNlA $ NlA \n \n260,299.65 $ 19,681.00 \n \n260.299,65 19,681.00 \n \nTotal Special Education Cluster \n \n$ \n \n279,980.65 $ \n \n279,980,65 \n \nOther Programs \n \nPass-Through From Georgia Department of Education \n \nElementary and secondary Education Act \n \nTitle I \n \nDelinquent Children \n \n84,010 \n \nNlA \n \nGrants to Local Educational Agencies \n \n84,010 \n \nNlA \n \nTitle II \n \nEisenhower Professional Development \n \n84,281 \n \nNlA \n \nTitle VI \n \nClass Size Reduction , \n \n84,340 \n \nNlA \n \nInnovative Education Program Slrategles \n \n84.298 \n \nNlA \n \nVocational Education - Basic Grants to States \n \nHigh School Program \n \nBasic Grant \n \n84,048 \n \nN1A \n \n83,576.28 296,533,41 \n16,000,00 52,474,00 15,420,85 \n22,980,00 \n \n83,576.28 296,533.41 \n12,787,17 59,131.20 (3) 15,420,85 \n22,996.47 (3) \n \nTotal U. S, Department of Education \n \n$ \n \n766,965.19 $ \n \n770,426.03 \n \nHealth and Human services, U. S, Department of Pass-Through From Ninth District Opportunity. Incorporated Head Start \n \n93,600 \n \nNlA $ \n \n164,999.53 $ \n \n141,315.60 \n \n. Total Federal Financial Assistance \nNlA = Not Available \n \n$ 1,524,183.94 $ 2,148,541.24 \n \n38 \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"1\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are induded in the 2001 National School Lunch Program. \n(3) Expenditures for this program indude State. and/or Other Funds. Expenditures are not maintained by fund source. \n(4) Funds earned on this program do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School Distrid did not provide Federal Assistance to any Subrecipient. \nJ \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements. \n \n.see notes to the general-purpose financial statements. \n \n- 39- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \n \nGRANTS \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nDirect Instructional Cost \n \nKindergarten Program \n \nKindergarten Program - Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades - Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nMiddle Grades (6-8) Program High School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \ncategory II \n \ncategory III \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nA1temative Education Program \n \nMedia Genter Program \n \nStaff and Professional Development \n \n. Indirect Cost \n \nCategorical Grants \n \nPupil Transportation \n \nRegular \n \nBus Replacement \n \nNursing Services \n \nPrincipal Supplements \n \nVocational Supervisors \n \nEducation Equalization Funding Grant \n \nFood Services \n \n. \n \nVocational Education \n \nOther State Programs \n \nApprenticeship Program \n \nAt-Risk Summer School Program \n \nEnvironmental Science Program \n \nHealth Insurance \n \nInnovative Programs \n \nMentoring Program \n \nMentor Teachers \n \nNext Generation Schools \n \nPreschooll:iandicapPed Program \n \nRemedial Summer School \n \nTeachers'Retirement \n \nLottery Programs \n \nComputers In the Classroom \n \nOffice of Treasury afld Fiscal Services Public School Employees Retirement \n \n, CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \n. REVENUE \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 659,999.00 134,374.00 \n1,621,957.00 426,732.00 \n1,029,034.00 1,599,613.00 1,158,67!;i.00 \n499,439.00 \n94,636.00 213,831.00 832,845.00 205,303.00 437,618,00 167,916,00 116,680,00 287,298,00 \n79,514.00 1,824,762.00 \n \n$ 659,999.00 134,374.00 \n1,621,957.00 426,732.00 \n1,029,034.00 1,599,613.00 1,158,675.00 \n499,439.00 \n94,636.00 213,831.00 832,845.00 205,303.00 437,618.00 167,916.00 116,680.00 287,298.00 \n79,514.00 1,824,762.00 \n \n485,634.00 150,696.00 \n82,212,00 14,352.00 21,943.00 125,465,00 \n$ 34,181.23 \n \n89,298.00 \n \n35,000.00 3,019.48 750.00 \n272,975.38 5,000.00 4,000.00 2,934.00 \n75,000.00 39,206.67 \n3,122.95 21,600,12 \n \n65,413.00 \n \n485,634.00 150,696.00 \n82,212,00 14,352,00 21,943.00 125,465.00 89,298.00 34,181.23 \n35,000.00 3,019.48 750,00 \n. 272,975.38 5,000.00 4,000.00 2,934.00 \n75,000.00 39,206.67 \n3,122.95 21,600.12 \n65,413,00 \n \n41,292.00 \n \n41.292.00 \n \n31,488.00 \n \n37,549.00 \n \n31,488.00 37,549.00 \n \nSee notes to the general-purpose financial statements, \n \n$ 12,840,097.83 $ 192,260.00 $ 13.032.357.83 -40- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVEP LOCAL OPTION SALES TAX pROJECTS \nYEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"3\" \n \nPROJECT \nPayments of Prinelpal and Interest on the 1993 Bonds from February 1, 1999 to August 1,2003 \nAcquisition, construction and equipping of a new elementary school and necessary fumishings and equipment, ineluding the acquisition of all necessary real or personal property and equipment, ineluding computers and related technology, adding to, renovating, repairing, improving and equipping existing educational buildings, properties and faellities of the school district and expenses Ineldent thereto \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED: IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 3,160,000.00 $ 3,160,000.00 $ 622,870.00 $ 784,956.35 Ongoing \n \n14,040,000.00 14,040,000.00 1,073,961.52 \n \n9,968,294.86 \n \nOngoing \n \n$ 17,200,000.00 $ 17,200,000.00 $ 1,696,831.52 $ 10,753,251.21 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the general-purpose finanelal statements. \n \n41 \n \n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (qBEl \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \n \nALLOTMENTS . FROM GEORGIA DEPARTMENT OF \nEDUCATION (1) \n \nELIGIBLE aBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \n.Primary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \ncategory I \n \ncategory II \n \nCategory III \n \ncategory IV Gifted Student ~category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \n799,248,00 $ \n162,725,00 1,964,164.00 \n516,766.00 1,246,144.00 1,937,106.00 1,403,137.00 \n604,813.00 1,630,731.00 \n529,950.00 203,343.00 141,298.00 \n \n697,244.20 $ \n211,105.56 1,764,411.17 \n555,554.01 1,123,239.77 1,560,825.42 1,656,305.78 \n420,422.35 \n115,311.50 281,912.30 1,051,720.20 221,009.94 641,986.06 . 381,125.41 \n65,253.28 \n \n19,533.09 $ \n3,697.38 90,414.37 \n5,133.56 38,687.45 120,952.92 69,096.32 144,322.62 \n2,449,40 6,275.18 32,380.41 6,273.64 19,193.23 \n710.00 74,694.14 \n \n716,777.29 214,802.94 1,854,825.54 560,687.57 1,161,927.22 1,681,778.34 1,725,402.10 564,744.97 \n117,760,90 288,187.48 1,084,100.61 227,283.58 661,179.29 381,835.41 139,947.42 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ 11,139,425,00 $ 10,747,426.95 $ 633,813.71 $ 11,381.240.66 \n \nMedia center Program Staff and Professional Development \n \n347,912.00 96.291.00 \n \n425,722.90 21,818.29 \n \n123,116.23 74,605.19 \n \n548,839.13 96,423.48 \n \nTOTAL aBE FORMULA FUNDS \n \n$ \n \n11,583,628.00 $ 11,194,968.14 $ 831,535.13 $ 12,026,503.27 \n \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nsee notes to the general-purpose financial statements. \n \n42 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nGENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (OBE) \n \nALLOTMENTS AND EXPENDITURES - BY SITE \n \n. \n \nYEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"5\" \n \nWhite County Intermediate School White County Middle School White County High School Jack P Nix Primary School White County Elementary School Central Office (Alternative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE OBE PROGRAM COSTS \n \n$ \n \n1,781,926.00 $ \n \n1,787,547.65 \n \n2,635,940.00 \n \n2,482,783.84 \n \n2,738,312.00 \n \n3,061,419.90 \n \n1,947,845.00 \n \n2,135,221.30 \n \n1,894,104.00 \n \n1,762,522.45 \n \n141,298.00 \n \n151,745.52 \n \n$ \n \n11,139,425.00 $ \n \n11,381,240.66 \n \nSee notes to the general-purpose financial statements. -43 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W.. Suite 214 Allanta, Georgia 30334-H400 \nJanuary 15,2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements ofWhite County Board ofEducation as of and for the year ended June 30,2001, and have issued our report thereon dated January 15, 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 gerierally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaimng reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing . an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning ~d performing our audit, we considered White County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provide assurance on the internal \n2001YB-41 \n \n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect White County 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-7541-01-01. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts . that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in th~ 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-754I-OI-OI to be a material weakness. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 200IYB-4I \n \nRus 11 W. Hinton_ State Auditor \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street. S.w.. Suite 214 Allanta. Georgia 30334-X400 \nJanuary 15; 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE WITH REOUlREMENTS APPLICABLE TO EACH MAJOR PRO. GRAM AND ON INTERNAL CONTROL OV. ER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWhite CountyBoard ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. White County 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 White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted out 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 White County Board of Education's compliance With those requirements and performing such other-procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements. \n200lSA-1O \n \n In our opinion, the White County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2001. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine oui auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low'level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use ofthe management, members ofthe White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \n- -Respectfully submitted, \nLO~ \nR sell W. Hinton State Auditor \nRWH:as 2001SA-1O \n \n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n ~- ..... \nWHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-99-02 FS-7541-00-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTIONIRESPONSES \n \nGENERAL FIXED ASSETS -Failure to Maintain General Fixed Assets Account Group . Finding Control Number: FS-7541-00-01 \n \nWhite County Board ofEducation concurs with this deficiency. Purchase order 10-08419 to American Appraisal Associates dated August 28, 2001, has been let to address this deficiency. Purchase order 10-08419 is for services to complete an appraisal of all fixed assets at the $5,000.00 capitalization level. A meeting has been scheduled with Mr. David Greenwalt of American Appraisal Associates for January 22, 2002, to begin the process. The plan is to have the deficiency corrected prior to completion of Fiscal Year 2002. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED'JUNE 30, 2001 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the White County Board of Education disclosed a fmancial statement reportable condition related to the following control category. \nGeneral Fixed Assets \nThe reportable condition described above is considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the White County Board of Education did not disclose any reportable conditions in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board ofEducation'S report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .51O(a) orOMB Circular A-I 33 The White County Board ofEducation's audit did not disclose audit findings required to be reported by section .5l0(a) ofOMB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \n8. Type \"A'i Program Dollar Threshold The dollar threshold for.type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The White County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.. \n- 1- \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \n \nII FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \n \nGENERAL FIXED ASSETS \n \nFailure to Maintain General Fixed Assets Account Group \n \nReportable Condition - Material Weakness \n \nRepeated from Prior Year \n \n. \n \nFinding Control Number: FS-7541 ..01-01 \n \nThe White County School District did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \n. ill FEDERAL AWAim FINDINGS AND OUESTIONED COSTS \n \nNo matters were reported. \n \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b1999-h2000","title":"White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. Department of Audits"],"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.","Report year covers fiscal year.","Has supplements: White County Board of Education, Cleveland, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (White County Board of Education, Ga), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (White County Board of Education, Ga.), fiscal year ended June 30, 2008-","Fiscal year ended June 30, 2000, released in 2001; title from cover.","Fiscal year ended June 30, 2008, released in 2009."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","White County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"........ - \nA6CO \n.RI \nE:2.1o \n\\tJ5B \n\\~qq-2.DOO \n \n \n , \nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \n \n \nI \nWHITE COUNTY BOARD OF EDUCATION \nCLEVELAND, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 \nRussell W. Hinton State Auditor \n \n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nAND EXPENDABLE TRUST FUNDS \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \nD \n \nCOMBINED STATEMENT OF REVENUES, EXPENSES AND \n \nCHANGES IN FUND BALANCES \n \nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \n \nE \n \nCOMBINED STATEMENT OF CASH FLOWS \n \nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \n \nF NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING AND INDIVIDUAL FUND STATEMENTS \n \nSPECIAL REVENUE FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nCAPITAL PROJECTS FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \n. AND CHANGES IN FUND BALANCES \n \nPage \n2 4 7 8 10 13 \n26 28 30 31 \n \n WHITE COUNTY BOARD OF EDUCATION \n- TABLE OF CONTENTS - \n\u003c\u003e \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nEXHffiITS \n \nCOMBINING AND INDIVIDUAL FUND STATEMENTS \n \nDEBT SERVIC'E FUND \n \nK \n \nCOMBINING BALANCE SHEET \n \n32 \n \nL \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n33 \n \nFIDUCIARY FUND TYPES \n \nM \n \nCOMBINING BALANCE SHEET \n \n34 \n \nN \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nEXPENDABLE TRUST FUNDS \n \n36 \n \no \n \nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUND \n \n37 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n38 \n \n2 SCHEDULE OF STATE REVENUE \n \n40 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n41 \n \nANALYSIS OF \n \nEXPENDITURE REQUIREMENTS \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \n \n4 \n \nOVERALL \n \n43 \n \n5 \n \nBY PROGRAM \n \n44 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \n WHITE COUNTY BOARD OF EDUCATION \n- TABLE OF CONTENTS - \n,'.  \n \nSECTION ill \n \nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nS \n \nY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n \n \n  \n \nSECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUCITOR \n1404) 6562174 \n \n'\" \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Stn:ct, s.w. Suite 214 \nAtlanta, Gcoru, ia 3lnJ1-X400 \nJuly 12, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Wh .: County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements ofthe White County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe White County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \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 \n \nfinancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \nWe did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. \n \n2000ARL-13A \n \n As described in the notes to the general purpose financial statements, the Board's financial statements \nhave been prepared u,.sing certain accounting practices and policies which, in our opinion. vary in \nsome respects from generally accepted accounting principles. These variances are de: .ribed as follows: \n* The general purpose financial statements ofthe Board did not contain a General Fixed \nAssets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. \n* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. \n* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \nIn our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the White County Board of Education as of June 30, 2000, and the results of its operations and the cash flows ofits nonexpendable trust funds for the yearthen ended, in conformity with accounting principles generally accepted in the United States of America. \n- \nIn accordance with Government Auditing Standards, we have also issued our report dated July 12, 2001, on our consideration ofthe White County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \n2000ARL-13A \n \n Our audit was performed for the purpose of forming an opinion on the general purpose financial \nstatements ofthe Whi..te County Board ofEducation taken as a whole. The accompanying combining \nand individual fund statements (Exhibits G through 0) and the financial schedules (Schedules 1 \nthrough 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of \nthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect ofadjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth \nparagraph, such information is fairly stated, in all material respects, in relation to the general purpose \nfinancial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- \n6-24. \nRespectfully submitted, \n \nRWH:jb 2000ARL-13A \n \nRussell W. Hinton State Auditor \n \n   \nWHITE COUNTY BOARD OF EDUCATION \n \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000 \n \nASSETS \nCash and Cash Ecuivalents \nInvestments \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 2,146,471.71 $ 367,437.82 $ 2,375,856.43 \n \n284,532.14 \n \n138,518.81 \n \n17,125.79 14,920.55 \n \nTotal Assets \n \n$ _ _2,431,003.85 $ \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Designated for Scholarships Undesignated \nTotal Fund Equity \n \n$ \n \n12,785.70 $ \n \n36,648.95 \n \n42,298.10 \n \n126,598.84 \n \n2,435.76 \n \n5,320.41 \n \n$ \n \n547,528.00 \n \n302,555.80 \n \n$ \n \n_--...:===::... 57,519.56 $ 168,568.20 $ \n \n850,083.80 \n \n$ \n \n3,699.24 \n \n17,125.79 14,920.55 \n$ \n \n775,291.94 \n \n$ 2,373,484.29 $ 2,373,484.29 $ \n \n333,689.19 \n369,434.77 $ \n \n750,480.69 1,525,772.63 \n \nTotal Liabilities and Fund Equity \n \n$ 2,431,003.85 $ _ _5~3~81002.97 $ \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n- 2- \n \n2,375,856.43 \n \n EXHIBIT \"A\" \n \n- \n \nDEBT SERVICE \nFUND \n \nFIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS \n \n$ \n \n541,257.11 $ \n \n9,187.82 \n \n2,214,632.72 \n \n23,541.85 \n \n421,515.00 \n \nACCOUNT GROUP \nGENERAL LONG-TERM \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 5,440,210.89 $ 8,875,514.36 \n \n2,238,174.57 \n \n1,982,238.91 \n \n844,565.95 \n \n813,829.35 \n \n$ 3,177,404.83 10,517,595.17 \n \n17,125.79 14,920.55 3,177,404.83 \n10,517,595.17 \n \n29,535.72 12,241.76 2,839,934.91 \n12,560,065.09 \n \n$ 3,177,404.83 $ ....._~3;;,;;,2,729.67 $ 13,695,000.00 $ 22,2491997.75 $ 27,113,360.10 \n \n$ \n \n825.32 \n \n-----$ \n \n$ \n \n825.32 $ \n \n$ \n13,6951000.00 13,695,000.00 $ \n \n49,434.65 $ 168,896.94 \n7,756.17 547,528.00 302,555.80 \n825.32 13,6951000.00 \n14,771,996.88 $ \n \n45,428.23 129,523.08 26,966.71 168,074.66 \n31,755.48 2,924.14 843.27 \n15,400,000.00 \n15,805,515.57 \n \n$ 3,177,404.83 $ \n \n23,500.00 \n \n0.00 $ 3,177,404.83 $ \n \n8,404.35 0.00 \n31,904.35 \n \n$ \n \n3,699.24 $ \n \n5,316.49 \n \n3,177,404.83 \n \n2,839,934.91 \n \n23,500.00 \n \n23,500.00 \n \n17,125.79 14,920.55 775,291.94 \n \n29,535.72 12,241.76 5,816,236.64 \n \n8,404.35 3,457,654.17 \n \n7,833.44 2,573,245.57 \n \n$ 7,478,000.87 $ 11,307,844.53 \n \n$_~3,177,404.83 $ _ _..3. _2,729.67 $ 13,695,000.00 $ 22,249,997.75 $ 27,1131360.10 -3- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS \nYEAR ENDED JUNE 30, 2000 \n \n \" \n \n \nGENERAL FUND \n \nGOVERNMENTAL FUND \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \n \nEXPENDITURES \n \n$ 11,393,507.40 $ \n3,310.49 7,308,674.25 \n546,301.72 \n$ 19,251,793.86 $ \n \n217,309.91 1,565,419.52 \n548,549.95 $ _ _~~~~ \n2,331,279.38 $ _ _~~~~ \n \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ 12,392,173.95 $ \n622,428.84 775,768.00 557,443.79 325,851.41 1,166,467.96 152,849.01 1,348,897.94 958,444.51 \n23,487.62 128,630.66 \n11,216.55 13,542.26 \n \n937,232.85 162,015.51 42,440.25 27,201.76 \n$ \n30.06 \n1,057,611.51 \n \n3,175.00 5,264,453.03 \n \n$ 18,477,202.50 $ \n \n$ \n \n774,591.36 $ \n \n2,226,531.94 $ _~=.5:,2.6.7=,=6:28:..0.3. 104,747.44 $ -5,037,492.15 \n \nOTHER FINANCING SOURCES (USES) \n \nOperating Transfers In Operating Transfers Out \n \nTotal Other Financing Sources (Uses) \n \n$ \n \n$ \n \n37,425.78 $ \n \n137,600.00 \n \n37,425.78 $ _ _~ 137~ ,60~ 0.0~ 0 \n \nExcess of Revenues and Other Financing Sources \nover (under) Expenditures and Other Financing Uses $ \nFUND BALANCE JULY 1 \n \n599,565.58 $ 1,773,918.71 \n \n142,173.22 $ \n236,992.69 \n \n-4,899,892.15 6,425,664.78 \n \nFood Inventory - Net Change in Period  Donated Commodities \nPurchased Food \n \n-12,409.93 2,678.79 \n \nFUND BALANCE JUNE 30 \n \n$ _..:;2,373,484.29 $ \n \n3..6-.9,434.77 $ _....:1,525,772.63 \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-4- \n \n EXHIBIT \"B\" \n \nTYPES DEBT \nSERVICE FUND \n \n  \nTOTAL \n \nFIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS \n \nTOTALS \n \n(Memorandum Only) \n \n_ \n \nYEAR ENDED \n \nJUNE 30,2000 \n \nJUNE 30, 1999 \n \n$ 11,610,817.31 \n \n1,568,730.01 \n \n$ 2,620,150.54 \n \n9,928,824.79 \n \n83.486.88 \n \n1.408.474.43 $ \n \n$ 2,703,637.42 $ 24,516,846.54 $ \n \n$ \n1,749.66 1,749.66 $ \n \n11,610,817.31 $ 1,568,730.01 9,928,824.79 1.410,224.09 \n24,518,596.20 $ \n \n10,268,749.20 1,307,698.06 9,756,663.25 1,370.491.62 \n22,703,602.13 \n \n$ 13,329.406.80 \n \n$ 13,329.406.80 $12,112,542.18 \n \n784.444.35 818,208.25 557,443.79 353,053.17 $ 1,166.467.96 156,024.01 1,348,897.94 958,474.57 \n23.487.62 128,630.66 1,068,828.06 5,277,995.29 \n \n1,520.95 \n \n784.444.35 818,208.25 557.443.79 354,574.12 1,166.467.96 156,024.01 1,348,897.94 958,474.57 23,487.62 128,630.66 1,068,828.06 5,277,995.29 \n \n661,528.08 823,025.76 449,682.15 397,001.45 963,374.53 121,047.90 1,298.480.43 909,503.52 26,138.16 \n56,774.86 1,037,887.17 2,118,702.96 \n \n$ 1,705,000.00 \n661,167.50 \n \n1,705,000.00 661,167.50 \n \n1,705,000.00 661,167.50 \n \n630,000.00 802,595.01 \n2,229.75 \n \n$ 2,366,167.50 $ 28,337,529.97 $ \n \n1,520.95 $ 28,339,050.92 $ 22.410,513.91 \n \n$ \n \n337,469.92 $ -3,820,683.43 $ _ _--:2==2:::.:8.'-=-71~ $ -3,820,454.72 $ \n \n293,088.22 \n \n$ \n \n175,025.78 \n \n-175,025.78 \n \n$----=0.0~0 \n \n$ \n \n337.469.92 $ -3,820,683.43 $ \n \n2,839,934.91 \n \n11,276,511.09 \n \n-12,409.93 2,678.79 \n \n$ \n \n175,025.78 $ \n \n325,114.09 \n \n-175,025.78 \n \n-32, 5,114.09 \n \n$ \n \n0.00 $ \n \n0=.0~ 0 \n \n228.71 $ 2,036.35 \n \n-3,820.454.72 $ 11,278,547.44 \n \n293,088.22 10,996.400.41 \n \n-12.409.93 2,678.79 \n \n-12,325.96 1,384.77 \n \n$ _..:;;3,177.404.83 $ _ _7,446,096.52 $ \n \n2,265.06 $ _ _7,448,361.58 $ 11,278,547.44 \n \n-5- \n \n  WHITE COUNTY BOARD OF EQUCATION COMBINED STATj;MENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \nyj;AR END~D JUNE 30, 2000 \n \nEXHIBIT C \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS)I-_ \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \n \ns 10,424,328.00 $ 11,393,507.40 \n \n218,000.00 \n \n3,310.49 \n \n6,728.196.00 \n \n7,308,674.25 \n \n190,000.00 \n \n546,301.72 \n \nTotal Revenues \n \n$ 17,560,524.00 $ 19,251,793.86 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nCapital Outlay \n \n$ 12,329,268.00 $ 12,392.173.95 \n \n606,043.00 895.892.00 454,765.00 322.591.00 1,041,903.00 143,905.00 1,434,638.00 1,023,929.00 \n26,550.00 56,665.00 \n \n622,428.84 775.768.00 557,443.79 325,851.41 1,166,467.96 . 152,849.01 1,348,897.94 958,444.51 \n23,487.62 128,630.66 \n11,216.55 13,542.26 \n \nTotal Expenditures \n \n$ 18,336,149.00 $ 18,477,202.50 \n \nExcess of Revenues over (under) Expenditures \n \n$ -775,625.00 $ _...7w7~4:,25.9!1..3:6.~ \n \nOTHER FINANCING SOURCES (US~ \n \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \n \n$ -10,477.00 S -175,025.78 $ -10,477.00 S -175,025.78 \n \nExcess of Revenues and Other Financing Sources \nover (under) Expenditures and Other Financing Uses $ \n \n-786,102.00 $ \n \n599,565.58 \n \nFUND BALANQE JULY 1, 1999 \n \n1,519,374.86 \n \n1,773,918.71 \n \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \n \nfUND BALANQ: JUNE 30. 2000 \n \n$ 733,272.86 S 2,373,484.29 \n \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ \n \n92,010.00 $ 217 .. . 11 \n \n1.152,596.00 \n \n1,565 32 \n \n510,618.00 \n \n548,5.. \\1.95 \n \n$ 1,755,224.00 $ 2,331,279.38 \n \n$ 603,616.00 $ 937,232.85 \n \n79,183.00 64,813.68 \n \n162.015.51 42,440.25 \n \n5,576.00 \n \n27,201.76 \n \n1,500.00 \n \n30.06 \n \n1,092,553.24 \n \n1,057,611.51 \n \n$ 1,847,241.92 $ 2,226,531.94 \n \n$ \n \n-92,017.92 $ _--'-1\"0~4',;7\"4:7\".4:4'~ \n \n$ \n \n10,477.00 $ \n \n37,425.78 \n \n$ \n \n10.477.00 $ _~~3=7,\"42-5\" .78- \n \n$ -81,540.92 $ 142,173.22 \n \n232,548.14 \n \n236,992.69 \n \n-12,409.93 2,678.79 \n \n$ _....:.:15;:,,:1 ,007.22 $ _ _3~6;;.::9,434.77 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -7- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES \nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2000 \n \n \nOPERATING REVENUES Donations \nOPERATING EXPENSES Current Support Services General Administration Operating Income \nNONOPERATING REVENUES Interest Earned Net Income \nFUND BALANCE JULY 1 \n \nFIDUCIARY FUND \n \nNONEXPENDABLE TRUST \n \nINDA YVONNE \n \nJULIA AND \n \nALLEN \n \nHARWELL \n \nMINORITY \n \nWESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \n$ \n \n594.25 $ \n \n~ 0.0.~ 0 \n \n$ \n \n1,508.75 $ \n \n$ \n \n-914.50 $ \n \n895.26 \n \n$ \n \n-19.24 $ \n \n19,489.05 \n \n0=.:0:0... 0.00 \n0.00 0.00 1,041.85 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n19,469.81 $ \n \n...1,.0.4:1~.8~5~ \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-8- \n \n EXHIBIT \"0\" \n \n  \n \nTYPE FUNDS \nVERA \nWESTMORELAND SCHOLARSHIP \n \nTOTALS \n \n_ _ _(Memorandum OnIVl...-_ _ \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n0.00 $ \n \n594.25 $ \n \n-50=5= .00~ \n \n$ \n \n0.00 $ \n \n1,508.75 $ _ _--:1.,=30=0:.:0.0... \n \n$ \n \n0.00 $ \n \n-914.50 $ \n \n-795.00 \n \n361.44 \n \n1,256.70 \n \n1,271.59 \n \n$ \n \n361.44 $ \n \n342.20 $ \n \n476.59 \n \n8,766.19 \n \n29,297.09 \n \n28,820.50 \n \n$ \n \n9,127.63 $ \n \n29,639.29 $ \n \n2-.9,297.09 \n \n-9- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS \nYEAR ENDED JUNE 30, 2000 \n \nCash Flows from Operating Activities: \ncash Received from Donations \nCash Paid for Scholarships \n \nNet Cash Provided (Used) by Operating Activities \nCash Flows from Investing Activities: Interest Received on Investments Cash Paid for Investments \nNet Cash Provided by Investment Activities \nNet Increase (Decrease) in Cash \nCash and Cash Equivalents - July 1 \n \nFIDUCIARY FUND \n \nNONEXPENDABLE TRUST \n \nINDA YVONNE \n \nJULIA AND \n \nALLEN \n \nHARWELL \n \nMINORITY \n \nWESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \n$ \n \n594.25 $ \n \n0.00 \n \n-1,508.75 \n \n$ \n \n-914.50 $ \n \n-0= .00~ \n \n$ \n \n895.26 $ \n \n0.00 \n \n$ \n \n895.26 $ \n \n$ \n \n-19.24 $ \n \n4,989.05 \n \n-0= .00~ 0.00 \n \nCash and Cash Equivalents - June 30 \n \n$ \n \n4,969.81 $ \n \n0._00_ \n \n \n \nThe notes to the general purpose financial statements are an integral part of this statement. -10 - \n \n EXHIBIT \"E\" \n \n \n\" \n \nTYPE FUNDS \nVERA \nWESTMORELAND SCHOLARSHIP \n \nTOTALS \n \n_ _ _(Memorandum Onl~r..... \n \n_ \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n0.00 $ \n \n594.25 $ \n \n505.00 \n \n-1,508.75 \n \n-1,300.00 \n \n$ \n \n0.00 $ \n \n-914.50 $ \n \n-..:7..:9::.;5:::.:0.::.0;::... \n \n$ \n \n361.44 $ \n \n1,256.70 $ \n \n1,271.59 \n \n-2,000.00 \n \n$ \n \n361.44 $ \n \n1,256.70 $ _ _~:.-.7:2:8:.:4:1,;~ \n \n$ \n \n361.44 $ \n \n342.20 $ \n \n-1,523.41 \n \n766.19 \n \n5,755.24 \n \n7,278.65 \n \n$ \n \n..1.,127.63 $ \n \n6,097.44 $ \n \n5,755.24 \n \n \n \n- 11 - \n \n  WHITE COUNTY BOARD OF EDUCATION \n \nEXHIDIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n,\". \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe White County Board of Education (Board) was established under the laws of the State of \nGeorgia and operates under the guidance of a school board elected by the voters and a \nSuperintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \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 fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \nGeneral Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. \nThe general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the 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: \nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \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. \n \n- 13- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \n\" \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \n \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \nFIDUCIARY FUND TYPES - the funds 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. These funds include: \n \nNONEXPENDABLETRUSTFUNDS Inda Yvonne Allen Minority Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to minority graduating seniors of the White County High School. \nJulia and Harwell Westmoreland Citizenship Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide an award to a male and female student selected by the senior class each year. \nVera Westmoreland Scholarship Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid each year to a deserving senior who has been accepted to college. \nEXPENDABLE TRUST FUNDS Libby Alexander Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a deserving student. \n. Lion's Club Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a graduating senior who has been accepted by a post secondary institution. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A fmancial reporting device used to account for general obligation debt outstanding. \n \n- 14- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n.. ~ \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nBASIS OF ACCOUNTING \n \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \n \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. \n \nAll nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. \n \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \n \nGovernmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: \n \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of . the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \n \nExpenditures are generally recognized when the related fund liability is incurred. \n \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 in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve \n \n- 15 - \n \n  \nWHITE COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \nJUNE 30, 2000 \n \nEXHIBIT \"F\" \n \n.,  \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nmonths. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar \nexpenditures and related revenues for contractual services completed prior to June 30, 1999, were \nrecorded 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. \nThe accrual basis of accounting, 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. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \nBUDGET \nThe White County 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. \nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws \nOCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured \nFederal savings and loan associations, or insured State chartered building and loan associations. \n \n- 16- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINVESTMENTS \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 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 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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \n- 17 - \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n.,  \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe White County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 30, 1999 (levy date). Taxes were due on December 30, 1999. The lien date for propertytaxes 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 White County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. \n \nTax millage rates levied for the 1999 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.500 mills .489 mills \n \n14.989 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,335,794.85 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $11,835,297.77 has been collected or on December 31, 2002, whichever occurs first. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \n \n- 18- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHmIT \"F\" \n \nNOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \n\". \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n \n \nGENERAL OBLIGATION BONDS \n \nThe Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. \n \nINTERFUND TRANSACTIONS \n \nThe Board has the following types of interfund transactions: \n \nReimbursements ofexpenditures/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. \n \nOperating transfers are recorded for all interfund transactions other than reimbursements. \n \nMEMORANDUM ONLY - TOTAL COLUMNS \n \nTotal columns on the general purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, 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. \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS \n \nOfficial Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on \n \ndeposit at any time in any depository for a time longer than ten days a sum ofmoney which has not \n \nbeen secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face \n \nvalue of such surety bond and the market value of securities pledged shall be equal to not less than \n \n \n \n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. \n \nIfa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe \n \nsecurities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool \n \nbalance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, \n \nwaive the requirement for security in the case ofoperating funds placed in demand deposit checking \n \naccounts. \n \n- 19- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n \nNote 2: DEPOSITS AND INVESTMENTS \nAcceptable security for deposits consists of anyone of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $6,992,680.79. The amounts ofthe total bank balances are classified into three categories of credit risk: \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent in the Board's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust \ndepartment or agent but not in the Board's name.) \nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \n \n- 20- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n \" \nNote 2: DEPOSITS AND INVESTMENTS \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 838,112.35 \n \n2 \n \n6,154,568.44 \n \n3 \n \n0.00 \n \nTotal \n \n$ 6,992,680.79 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $2,214,632.72. \n \nType of Investment \n \nCarrying Amount \n \nFair Value \n \nInvestments not Subject to Categorization: \n \nLocal Government \n \nInvestment Pools \n \n$ 2,214,179.50 $ 2,214,179.50 \n \nMutual Funds Money Market Account \n \n \n \n453.22 \n \n453.22 \n \nTotal Investments \n \n$:Ul4.632.7f $ f.2.a63f7f \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \n- 21 - \n \n WHITE COUNTY BOARD OF EDUCAnON \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n., , \nNote 2: DEPOSITS AND INVESTMENTS \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. \nGovernment or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \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 value. See Note 1 - Inventories \n \nNote 4: RISK MANAGEMENT \n \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. \n \nThe Board 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 Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n1999 2000 \n \nBeginning of Year Liability_ \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability_ \n \n$ \n \n0.00 $ \n \n890.00 $ \n \n890.00 $, \n \n~ 0.~ 00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n~0.~ 00 \n \n- 22- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHmIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n..  \nNote 4: RISK MANAGEMENT \n \nThe Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of$350,000.00 loss per occurrence, up to the statutory limit. \n \nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Employee Blanket Bond \n \n$ 100,000.00 $ 100,000.00 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \n_ _ _ _~P-=urp~o~se::..- \n \n_ \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1993 General Government - Series 1997 \n \n3.1 0% - 5.55% $ 6,205,000.00 \n \n3.80% -4.30% \n \n7,490,000.00 \n \n$ 13.695.QQQ:QQ \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: \n \nBalance July 1, 1999 \nDeductions Debt Retired \n \nGeneral Obligation \nBonds \n$ 15,400,000.00 \n1,705,000.00 \n \nBalance June 30, 2000 \n \n$ 13.6~~.QQQ:QQ \n \n- 23- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n,. \nNote 5: GENERAL LONG-TERM DEBT \n \nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2001. 2002 2003 2004 2005 2006 - 2010 2011 - 2015 \n \n$ 2,576,841.25 2,725,213.75 2,896,308.75 2,432,500.00 622,532.50 3,143,403.75 2,525,156.25 \n \nTotal Principal and Interest \n \n$ 16.92L956!~,~ \n \nNote 6: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and expenditures in the amount of $323,397.67 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $262,384.59 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$17,711.08 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $43,302.00 \n \nNote 7: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000: \n \n- 24- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n  \nNote 7: SIGNIFICANT COMMITMENTS \n \nProject New Elementary School \n \nUnearned Executed Contracts \n \nThe amounts described in this note are not reflected in the general purpose financial statements. \n \nNote 8: CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. \n \nNote 9: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System 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 ofAudits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n2000 1999 1998 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 1,278,955.59 $ 1,248,249.35 $ 1,122,927.84 \n \n- 25- \n \n  \nWHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 \n \nASSETS Cash and Cash Equivalents Accounts Receivable Inventories \nFood Donated Commodities Purchased Food \nTotal Assets \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n400,810.99 \n \n804.00 $ \n \n7,826.60 \n \n \n17,125.79 14,920.55 \n \n$ \n \n433,661.33 $ =====:7:,8.2.6~.6~0~ \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \nTotal Liabilities \n, \nFUND EQUITY \n \nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \nTotal Liabilities and Fund Equity \n \n$ \n \n$ \n \n12,565.42 \n \n55,360.38 \n \n7,826.60 \n \n$ \n \n67,925.80 $ _ _---7=,8..2..6=.6=0\"- \n \n$ \n \n17,125.79 \n \n14,920.55 \n \n333,689.19 $ \n \n$ \n \n365,735.53 $ \n \n---0:.:0:0;~ 0=.0~ 0 \n \n$ \n \n433,661.33 $ _ _~ 7,8~ 26.6~ 0 \n \nSee notes to the general purpose financial statements. 26 \n \n EXHIBIT \"G\" \n \nFEDERAL \nPROGRAMS \n \nOTHER \nPROGRAMS \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n400,810.99 $ \n \n264,739.00 \n \n$ \n \n125,323.90 $ \n \n4,564.31 \n \n138,518.81 \n \n90,948.69 \n \n17,125.79 14,920.55 \n \n29,535.72 12,241.76 \n \n$ ............1,;,;;2;,;;;,5,323.90 $ \n \n4,564.31 $ \n \n571,376.14 $ =~===39=7~,4=6=5=.1=7= \n \n$ \n \n20,982.26 $ \n \n24,083.53 \n \n71,238.46 \n \n5,320.41 \n \n$ \n \n121,624.66 $ \n \n4,564.31 $ 4,564.31 $ \n \n33,373.17 $ \n36,648.95 126,598.84 \n5,320.41 \n \n4,155.11 30,046.78 101,071.80 25,198.79 \n \n201,941.37 $ _ _.1.6:0.,4=7~2=.:4:8.. \n \n$ \n \n3,699.24 \n \n0.00 $ \n \n$ \n \n3,699.24 $ \n \n$ \n \n3,699.24 $ \n \n5,316.49 \n \n0=. 0;0. . \n0.00 $ \n \n17,125.79 14,920.55 \n \n29,535.72 12,241.76 \n \n333,689.19 \n \n189,898.72 \n \n369,434.77 $_---2.3:=6,9=92=.6;9.. \n \n$ \n \n125,323.90 $ \n \n4,564.31 $ _-...:5:;;,:7..:.1 ,376.14 $ _ _3..9.7.,465.17 \n \n- 27- \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Other Support Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTIERY PROGRAMS \n \n$ \n \n86,606.00 $ \n \n566,246.03 \n \n548,549.95 \n \n83,590.60 \n \n$ 1,201,401.98 $ _ _~ 83= ,59= 0.6~ 0 \n \n$ \n \n15,821.36 \n \n67,937.00 \n \n1,057,611.51 \n \n$ 1,057,611.51 $ _ _-83=,7~ 58= .36~ \n \n$ \n \n143,790.47 $ \n \n-167.76 \n \n$ \n \n143,790.47 $ \n \n231,676.20 \n \n-12,409.93 2,678.79 \n \n167.76 \n0.00 0.00 \n \n$ _ ......3...6-.5,735.53 $ ......-=-==.-;,;,;;0;,.;0;;0... \n \nSee notes to the general purpose financial statements. \n- 28- \n \n EXHIBIT \"H\" \n \n  \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n$ \n \n999,173.49 \n \n$ \n \n999,173.49 $ \n \n47,113.31 $ 47,113.31 $ \n \n217,309.91 $ 1,565,419.52 \n548,549.95 \n2,331,279.38 $ \n \n221,548.98 1,300,098.74 \n498,287.27 \n2,019,934.99 \n \n$ \n \n884,538.57 $ \n \n94,078.51 31,974.97 \n \n27,201.76 30.06 \n \n$ 1,037,823.87 $ \n \n$ \n \n-38,650.38 $ \n \n36,872.92 $ 10,465.28 \n47,338.20 $ \n-224.89 $ \n \n937,232.85 $ \n162,015.51 42,440.25 \n27,201.76 30.06 \n1,057,611.51 \n2,226,531.94$ \n104,747.44 $ \n \n762,276.05 \n67,406.76 73,070.87 \n6,029.06 16,247.52 \n1,159.77 1,037,060.99 \n1,963,251.02 \n56,683.97 \n \n37,033.13 \n \n$ \n \n-1,617.25 $ \n \n5,316.49 \n \n224.89 \n \n37,425.78 \n \n114.09 \n \n0.00 $ \n0.00. \n \n142,173.22 $ 236,992.69 \n \n56,798.06 191,135.82 \n \n-12,409.93 2,678.79 \n \n-12,325.96 1,384.77 \n \n$ \n \n\".,;;,3,699.24 $ \n \n0.00 $ \n \n36_9,434.77 $ _ ....2..3.6..,.9.9..2...6.9... \n \n- 29- \n \n \n  \n'\" \nASSETS Cash and Cash Equivalents \n \nWHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 \n \nEXHIBIT \"I\" \n \nREGULAR \n \nBOND PROCEEDS \n \nTOTALS JUNE 30, 2000 JUNE 30, 1999 \n \n$ \n \n750,480.69 $ 1,625,375.74 $ 2,375,856.43 $ 6,625,494.92 \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nContracts Payable \n \n$ \n \nRetainages Payable \n \nTotal Liabilities \n \n$ \n \nFUND EQUITY \n \nFund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n$ - - =7=50=,48:0:..69. . \n \n$ \n \n750,480.69$ \n \n547,528.00 $ 302,555.80 \n850,083.80 $ \n \n547,528.00 $ 302,555.80 \n \n168,074.66 31,755.48 \n \n850,083.80 $ _----'1-9'=9=,8c3:0...:1.4... \n \n775,291.94 $ \n \n775,291.94 $ 5,816,236.64 \n \n0.00 \n \n750,480.69 \n \n609,428.14 \n \n775,291.94 $ 1,525,772.63 $ 6,425,664.78 \n \nTotal Liabilities and Fund Equity \n \n$ _ _7:.;;;5~0,480.69 $ 1,625,375.74 $ 2,375,856.43 $ 6,625,494.92 \n \nSee notes to the general purpose financial statements. \n \n30 \n \n WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND \nYEAR ENDED JUNE 30, 2000 \n \nEXHIBIT\"J\" \n \n  \n \nREGULAR \n \nBOND PROCEEDS \n \nTOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 \n \nREVENUES \n \nOther Funds \n \n$ \n \n3,452.55 $ \n \n226,683.33 $ \n \n230,135.88 $ _~3~ 55~ ,22: 8.1- 7 \n \nEXPENDITURES \n \nCurrent Support Services Business Administration \nCapital Outlay Land and Land Improvements Juilding and Building Improvements equipment \n \n$ \n \n0.00 $ \n \n3,175.00 $ \n \n3,175.00 $ \n \n511.65 \n \n5,264,453.03 \n \n5,264,453.03 \n \n8,219.70 2,039,542.58 \n48,109.88 \n \nTotal Expenditures \n \n$ \n \n0:::..,:.::.,:00::.. $ 5,267,628.03 $ 5,267,628.03 $ 2,096,383.81 \n \nExcess of Revenues over (under) Expenditures \n \n$ \n \n3,452.55 $ -5,040,944.70 $ -5,037,492.15 $ -1,741,155.64 \n \nOTHER FINANCING SOURCES \n \nOperating Transfers In \n \n137,600.00 \n \n137,600.00 \n \n325,000.00 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures \n \n$ \n \n141,052.55 $ -5,040,944.70 $ -4,899,892.15 $ -1,416,155.64 \n \nFUND BALANCE JULY 1 \n \n609,428.14 \n \n5,816,236.64 \n \n6,425,664.78 \n \n7,841,820.42 \n \nFUND BALANCE JUNE 30 \n \n$ _ _7~5::;:,01480.69 $ _ _7.:.:7~5,291.94 $ 1,525,772.63 $ 6,425,664.78 \n \nSee notes to the general purpose financial statements. \n \n- 31 - \n \n .. \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nWHITE COUNTY BQARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000 \n \nEXHIBIT \"K\" \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS JUNE 30, 2000 JUNE 30, 1999 \n \n$ 706,042.96 \n \n$ 706,042.96 $ 655,438.55 \n \n$ 2,214,632,72 \n \n2,214,632.72 \n \n1,958,697.06 \n \n7,706.33 \n \n413,808.67 \n \n421 ,515.00 \n \n390,585.15 \n \n \n \nTotal Assets \n \n$ 713,749.29 $ 2,628,441.39 $ 3,342,190.68 $ 3,004,720.76 \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nCash Overdraft \n \n$ \n \n164,785.85 $ \n \n164,785.85 $ _--:';:1::6.4..,:7.8J.5:.\"8=:5:~ \n \nFUND EQUITY \n \nFund Balances Reserved For Debt Service Unreserved Undesignated \n \n$ 713,749.29 $ \n_ _ _ _o~..:.:oo:- \n \n2,463,655.54 $ \n0.00 \n \n3,177,404.83 $ \n0.00 \n \n2,839,934.91 0.00 \n \nTotal Fund Equity \n \n$ 713,749.29 $ 2,463,655.54 $ 3,177,404.83 $ 2,839,934.91 \n \nTotal Liabilities and Fund Equity $ 713?49.29 $ 2,628,441.39 $ 3,342,190.68 $ 3,004,720.76 \n \nSee notes to the general purpose financial statements. \n \n- 32- \n \n WHITE COUNTY BOARD O,\",';\"DUCATION \n \nEXHIBIT \"L\" \n \nCOMBINING STATEMENT OF REVENUES, EXPENDIT: . , .? AND CHANGES IN FUND BALANCES \n \n_ - DEBT \n \nS \n \nE \n \nR \n \nV \n \nI \n \nC \n \nE \n \n' ~ \n \n.. \n \n,J \n \nYEAR ENDED JUNE 30, 2000 \n \n.,  \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED \nJUNE 30, 2000 JUNE 30, 1999 \n \nREVENUES \n \nTaxes Other Funds \n \n$ 284,355.69 $ 2,335,794.85 $ 2,620,150.54 $ 2,848,977.11 \n \n8,016.47 \n \n75,470.41 \n \n83,486.88 \n \n54,858.52 \n \nTotal Revenues \n \n$ 292,372.16 $ 2,411,265.26 $ 2,703,637.42 $ 2,903,835.63 \n \nEXPENDITURES \n \nDebt Service Principal Interest Paying Agent Fees \n \n$ 1,705,000.00 $ 1,705,000.00 $ \n \n630,000.00 \n \n$ 258,008.99 \n \n403,158.51 \n \n661,167.50 \n \n802,595.01 \n \n2,229.75 \n \nTotal Expenditures \n \n$ \n \n258,008.99 $ 2,108,158.51 $ 2,366,167.50 $ 1,434,824.76 \n \nExcess of Revenues over (under) Expenditures $ \n \n34,363.17 $ \n \n303,106.75 $ \n \n337,469.92 $ 1,469,010.87 \n \nFUND BALANCE JULY 1 \n \n679,386.12 \n \n2,160,548.79 \n \n2,839,934.91 \n \n1,370,924.04 \n \nFUND BALANCE JUNE 30 \n \n$ 713,749.29 $ 2,463,655.54 $ 3,177,404.83 $ 2,839,934.91 \n \nSee notes to the general purpose financial statements. \n \n33 - \n \n   \nASSETS \nCash and Cash Equivalents Investments \n \nWHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000 \n \nNONEXPENDABLE TRUST FUNDS \n \nENDOWMENT FUNDS \n \nINDA YVONNE ALLEN \n \nJULIA AND HARWELL \n \nVERA \n \nMINORITY \n \nWESTMORELAND WESTMORELAND \n \nSCHOLARSHIP \n \nCITIZENSHIP \n \nSCHOLARSHIP \n \n$ \n \n4,969.81 \n \n$ \n \n1,127.63 \n \n14,500.00 $ _ _----:.1J.:,::0...4.:..1.:...:8.:::5;:::- \n \n8,000.00 \n \nTotal Assets \n \n$ \n \n19,469.81 $ \n \n1,041.85 $ ===:::Oi:!:9:=,1=2=7=.6=3= \n \nLIABILITIES AND FUND EqUITY \n \nLIABILITIES \n \nFunds Held for Others \n \nFUND EqUITY \n \nFund Balances \n \nReserved \n \nFor Endowment Corpus \n \n$ \n \nUnreserved \n \nDesignated for Scholarships \n \nUndesignated \n \nTotal Fund Equity \n \n$ \n \n14,500.00 $ \n4.969.81 0.00 \n19,469.81 $ \n \n1,000.00 $ \n41.85 0.00 \n1,041.85 $ \n \n8,000.00 \n1,127.63 0.00 \n...9.::,.1.L2.:.7.:..:.6.:=3=- \n \nTotal Liabilities and Fund Equity \n \n$ _ _1..9.,469.81 $ \n \n1,041.85 $ ==-_ _..9oi,o1!o2;=7=.=6-3== \n \nSee notes to the general purpose financial statements. \n34 \n \n EXHIBIT \"M\" \n \n  \n \nEXPENDABLE TRUST FUNDS \n \nLIBBY ALEXANDER SCHOLARSHIP \n \nLION'S CLUB SCHOLARSHIP \n \nFUND \n \nFUND \n \nAGENCY FUNDS \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n2,214.06 $ \n \n51.00 $ \n \n825.32 $ \n \n9,187.82 $ \n \n8,634.86 \n \n23,541.85 \n \n23,541.85 \n \n$ \n \n2,214.06 $ \n \n51.00 $ \n \n825.32 $ \n \n32,729.67 $ = =..3...2..,~1;;7;;6,;.7,.1,;= \n \n$ \n \n825.32 $ \n \n8=2;.;;;.5';.;;;.32~ $ _ _---.8,4;=3.=2:7_ \n \n$ \n \n2,214.06 $ \n \n51.00 \n \n0.00 \n \n0.00 \n \n$ \n \n2,214.06 $ \n \n......:5:...1:....:.0:::.0;:::... \n \n$ \n \n23,500.00 $ \n \n23,500.00 \n \n8,404.35 0.00 \n \n7,833.44 0.00 \n \n$ \n \n31,904.35 $ _ _..3.:1:..,:3..3=:3:.:..4.:4...;~ \n \n$ \n \n2,214.06 $ \n \n51.00 $ \n \n825.32 $ \n \n32,729.67 $ .......=~32~ ,17~ 6.7~ 1 \n \n \n- 35- \n \n WHITE COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"N\" \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \n \nFIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS \n \nYEAR ENDED JUNE 30, 2000 \n \n \nH \n \nLIBBY ALEXANDER SCHOLARSHIP \nFUND \n \nLION'S CLUB SCHOLARSHIP \nFUND \n \nTOTALS YEAR ENDED JUNE 30, 2000 JUNE 30,1999 \n \nREVENUES Other Funds \n \n$ \n \n749.66 $ \n \ns 1,000.00 \n \n1,749.66 $ _ _..1..:,.4L4..:8-'.-2==2=- \n \nEXPENDITURES \n \nCurrent \n \nSupport Services \n \nGeneral Administration \n \n$ \n \nExcess of Revenues over (under) Expenditures $ \n \nFUND BALANCE JULY 1 \n \n520.95 $ 228.71 $ \n1,985.35 \n \n1,000.00 $ 0.00 $ \n51.00 \n \n1,520.95 $ _ _..1..:,.1L6..:6...:6:.=6=- \n \n228.71 $ \n \n281.56 \n \n2,036.35 \n \n1,754.79 \n \nFUND BALANCE JUNE 30 \n \ns \n \n2,214.06 $ \n \n======== 51.00 $ ===-,:;,2,265.06 $ =-...... 2,036.35 \n \nSee notes to the general purpose financial statements. \n \n- 36- \n \n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUND \nYEAR ENDED JUNE 30, 2000 \n..  \n \nEXHIBIT \"0\" \n \nBALANCE \nJULY 1,1999 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE \nJUNE 30, 2000 \n \nBUS DRIVERS' ASSOCIATION \n \nASSETS \n \nCash and Cash Equivalents \n \n$ \n \n843.27 $ \n \n435.00 $ \n \n452.95 $ \n \n.:8;;,2;;;5;;.;,3;;;2;;;.. \n \nLIABILITIES Funds Held for Others \n \n$ \n \n843.27 $ \n \n435.00 $ \n \n452.95 $ __......_~82~ 5.3= 2 \n \nSee notes to the general purpose financial statements. \n-37 - \n \n SCHEME QF EXPliliDlTURES OF FEDI;RAL AWARDS \nYI;AR ~ JUNE 30, 2000 \n \nSCHEDULE \"1\" \n \n':.  \nFUNDING AGENCY PRQGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgriculture, U. S, Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \n \n 10,553  10.555 \n \nN/A $ 118,127.32 \n \nN/A \n \n385,799.86 $ \n \n(2) \n995,292.66 (3) \n \nTotal Child Nutrition Cluster \n \n$ 503,927.18 $ \n \n995,292,66 \n \nOther Programs \n \nPass-Through From Georgia Department of Education \n \nFood and Nutrition Program \n \nFood Distribution Program (1 ) \n \n10.550 \n \nN/A \n \nPass-Through From Office of Treasury and Fiscal Services \n \nNational Forest Reserve Funds \n \n10,665 \n \nN/A \n \n62,318.85 \n \n62,318.85 \n \n3,310.49 _ _(\u003e-:.4) ' - - _ \n \nTotal U, S, Department of Agriculture \n \n$ 569,556.52 $ 1,057,611.51 \n \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B  Special Education Capacity Building Improvement Flow Through Preschool \n \n84.173 84.027 84.173 \n \nN/A $ 11,n3.00 $ \n \nNlA \n \n265,473.00 \n \nN/A \n \n19,863.57 \n \n11,811.37 (3) 284,682.96 (3) \n19,892.16 (3) \n \nTotal Special Education Cluster \n \n$ 297,109.57 $ \n \n316,386.49 \n \nOther Programs \n \nPass-Through From Georgia Department of Education \n \nElementary and Secondary Education Act \n \nTitle I Delinquent Children Grants to Local Educational Agencies \n \n 84.010 \n \nN/A \n \n 84.010 \n \nN/A \n \nTitle II \n \nEisenhower Professional Development \n \n84.281 \n \nNlA \n \nTitle VI \n \nClass Size Reduction \n \n84.340 \n \nNlA \n \nInnovative Education Program Strategies \n \n84.298 \n \nN/A \n \nGoals 2000 \n \nState and Local Education Systemic Improvement Grants \n \n84.276 \n \nN/A \n \nVocational Education Basic Grants to States \n \nHigh School Program \n \nBasic Grant \n \n84.048 \n \nNlA \n \n65,514.01 302,023.00 \n16,000.00 48,123.00 14,910.54 110,920.55 \n19,599.22 \n \n65,514.01 306,815.71 (3) \n17,683.66 59,254.21 (3) 14,910.54 110,920.55 \n19,747.85 (3) \n \nTotal U. S. Department of Education \n \n$ 874,199.89 $ _--=9~1=1:,2.33=.=02- \n \nHealth and Human Services, U. S. Department of Pass-Through From Ninth District Opportunity, Incorporated Head Start \n \n93.600 \n \nNlA $ 124,973.60 $ _--=12=6,5=90=.85- \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n- 38- \n \n$ ..,l.568,730.01 $ _ _2,095,435.38 \n \n YVHITE COUNTY BOABD OF l;,DUCATION SCHEQUl..E OF EXPENDITURES OF FEDERAL A.WARDS \nYEAR ENDER JUNE 30, 2000 \n.. Notes to the Schedule of Expenditures Qf Federal AWilrgs \n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. \n(3) Expenditures for this program include State. and/or Other Funds. Expenditures are not maintained by fund source. \n(4) Funds eamed on this program do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (0) in front of the CFDA number, \nThe Board did not provide Federal Assistance to any Subrecipienl. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \n \nSCHEDULE \"1\" \n \nSee notes to the general purpose financial statements. \n \n39 \n \n WHITE COUNTY BOARD QF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"2\" \n \n \n. :\u003e \nAGENCY/FUNDING \nGRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost 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 Vocational Education Other State Programs Altemative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teacher Program Next Generation Schools Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Teachers'Retirement Lottery Programs Assistive Technology Computers in the Classroom \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of Reading First Program \nOffice of Planning and Budget Georgia Council for the Arts Georgia Challenge Program \nOTHER Education, Georgia Department of Reimbursement for Substitute Teachers \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 6,996,713.00 \n1,655,996.00 41,312.00 \n300,183.00 80,252.00 \n1,870,169.00 \n429,152.00 133,248.00 250,834.00 221,053.00 \n70,548.00 346,904.00 \n33,156.00 28,842.00 -2,161,672.00 329,647.00 \n$ \n24,820.81 \n44,065.00 32,801.83 \n7,319.50 262,384.59 \n5,000.00 2,422.06 75,000.00 212,000.00 37,267.15 3,026.38 17,711.08 \n43,302.00 \n \n$ \n86,606.00 \n15,653.60 67,937.00 \n \n6,996,713.00 1,655,996.00 \n41,312.00 300,183.00 \n80,252.00 1,870,169.00 \n429,152.00 133,248.00 250,834.00 221,053.00 \n70,548.00 346,904.00 \n33,156.00 28,842.00 -2,161,672.00 329,647.00 86,606.00 24,820.81 \n44,065.00 32,801.83 \n7,319.50 262,384.59 \n5,000.00 2,422.06 75,000.00 212,000.00 37,267.15 3,026.38 17,711.08 \n15,653.60 67,937.00 \n \n43,302.00 \n \n37,549.00 \n \n37,549.00 \n \n9,564.31 \n \n9,564.31 \n \n50.00 \n \n50.00 \n \nSee notes to the general purpose financial statements. \n \n$ 11,393,507.40 $ \n-40 - \n \n217,309.91 $ 11,610,817.31 \n \n WHITE COUNlY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2000 \n \nSCHEDULE \"3\" \n \n,.. \nPROJECT \nPayments of Principal and Interest on the 1993 Bonds from February 1, 1999 to August 1, 2003 \nAcquisition, construction and equipping of a new elementary school and necessary fumishings and equipment, including the acquisition of all necessary real or personal property and equipment, including computers and related technology, adding to, renovating, repairing, improving and equipping existing educational buildings, properties and facilities of the school district and expenses incident thereto \n \nORIGINAL \nESTIMATED \nCOST ill_ \n \nCURRENT ESTIMATED COSTS (=2),-- \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR \nYEARS \n \n$ 3,160,000.00 $ 3,160,000.00 $ \n \n362,168.51 $ \n \n164,785.85 \n \n14,040,000.00 \n \n14,040,000.00 \n \n5,605,443.03 \n \n4,362,851.83 \n \n$ 17,200.000.00 $ 17,200.000.00 $ 5.967,611.54 $ 4.527,637.68 \n \n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire \nassociated debt. Amounts expended for these projects may include sales tax proceeds. state. local property \ntaxes and/or other funds over the life of the projects. \n \nsee notes to the general purpose financial statements. \n \n41 - \n \n  WHITE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR EN:~;;D JUNE 30, 2000 \n \nSCHEDULE \"4\" \n \n \n \nMinimum Expenditure Requirements (Total Allotment) \nExpenditures on Combined Program Basis Salaries Operations \nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \nExpenditures per Audit \n \nFOURTEEN WEIGHTED AND MEDIA CENTER \nPROGRAMS \n \n100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \n \n$ \n \n9,278, 191 .00 $ _ _-=::3.:2=.:4::,.9.!.5::3::.:0:.0::.~ \n \n$ \n \n10,451,218.95 \n \n571 ,737.11 $ _ _--=4::7..1:~,:8:.6.:1::..6.:8.:~ \n \n$ \n \n11,022,956.06 \n \n-128,537.18 10,894,418.88 \n \nAmount of Underexpenditure for Total Allotment \n \n \n \n$ \n \n0.00 $=======0=.00~ \n \nSee notes to the general purpose financial statements. - 43 - \n \n WHITE COUNTY BQARD OF EDUCATION A~ALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \nYEAR ENDED JUNE 30. 2000 \n \nGENERAL AND CAREER EDUCATION PROGRAMS \n \nKindergarten (*) \n \n \n \nGrades 1 - 3 (*) \n \nSub-Total- K-3 \n \nGrades 4 - 5 (*) \n \nGrades 6 - 8 (*) \n \nGrades 9 - 12 (*) \n \nHigh School Laboratories (*) \n \nVocational Education Laboratories (*) \n \nTotal General and Career Education Programs \n \nSPECIAL EDUCATION PRQGRAMS \n \nRegular Programs Category I (*) Category II (*) \nCategory III (*) \nCategory IV (*) Category V (*) \n \nSub-Total - Regular \n \nCategory VI (Gifted) (*) \n \nTotal Special Education Programs \n \nREMEDIAL EDUCATION PROGRAM e.l \n \nTotal Fourteen Weighted Programs \n \n~IA CENTl;R PROGRAM~ \n \nSalaries Operations \n \nTotal Media Center Programs \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF \n \nREQUIRED \n \nORIGINAL \n \n% \n \nORIGINAL \n \nMID-TERM \n \n$ \n \n806,126.00 \n \n$ \n \n725,513.40 \n \n2,011,385.00 \n \n1,81 0,246.50 $ _ _1=2\"\"6'-,'6..7:.7.:.;0.:;0.. \n \ns $ 2,817,511.00 90 $ 2,535,759.90 \n \n126,677.00 \n \n988,567.00 90 \n \n889,710.30 \n \n70,213.00 \n \n1,507,155.0090 \n \n1,356,439.50 \n \n-48,118.00 \n \n673,469.00 90 \n \n606,122.10 \n \n2,175.00 \n \n523,545.00 90 \n \n471,190.50 \n \n18,548.00 \n \n486,466.00 90 \n \n437,819.40 \n \n-53,832.00 \n \n$ 6,996,713.00 \n \n$ 6,297,041.70 $ _ _1,15-,6=63=.0~ 0 \n \n$ 1,203,150.00 \n \n$ 1,082,835.00 $ \n \n47,810.00 \n \n$ 1,203,150.00 90 $ 1,082,835.00 $ \n \n47,810.00 \n \n452,846.00 90 \n \n407,561.40 \n \n60,935.00 \n \n$ 1,655,996.00 \n \n$ 1,490,396.40 $ _---'=;1.0.8..,7;4,;5;.;0,0~ \n \n$ \n \n41,312.00 90 $ \n \n==:.:::.::.. 37,180.80 $ __48,884.00 \n \n$ 8,694,021.00 \n \n$ 7,824,618.90 $_---27=3\",2-9=2.=00~ \n \n$ \n \n242,716.00 90 $ \n \n218,444.40 $ \n \n57,467.00 100 \n \n57,467.00 \n \n8,174.00 2,521.00 \n \n$ \n \n300,183.00 \n \n$ \n \n275,911.40 $ _ _..1.0;,,,6;,9:5=.0=0- \n \nTotal Fourteen Weighted and Media Center Programs $ 8,994,204.00 \n \n$ 8,100,530.30 $ _ ....2;;8,;;3,;;,;_98_7...0.0.. \n \nSTAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development \nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. \nSee notes to the general purpose financial statements. \n \n$ \n \n26,044.00 \n \n54,208.00 \n \n$ \n \n26,044.00 $ \n \n54,208.00 \n \n1,209.00 0.00 \n \n$ \n \n80,252.00 100 $ \n \n80,252.00 $ -=_...1..,.2..0.9....0.0.. \n \n 44  \n \n SCHEDULE \"5\" \n \nEDUCATION TOTAL \nREQUIRED \n \n.,  \nSALARIES \n \nTOTAL \n \nAMOUNT OF UNDEREXPENDITURE \nFOR REQUIRED ALLOTMENT \n \n$ \n \n725,513.40 $ \n \n820,830.06 $ \n \n19,879.93 $ \n \n840,709.99 \n \n1,936,923.50 \n \n2,346,269.33 \n \n57,714.76 \n \n2,403,984.09 \n \n$ 2,662,436.90 $ 3,167,099.39 $ \n \n77,594.69 $ 3,244,694.08 $ \n \n0.00 \n \n959,923.30 \n \n1,247,756.65 \n \n58,221.46 \n \n1,305,978.11 \n \n0.00 \n \n1,308,321.50 \n \n1,370,697.90 \n \n112,129.07 \n \n1,482,826.97 \n \n0.00 \n \n608,297.10 \n \n687,123.94 \n \n29,149.66 \n \n716,273.60 \n \n0.00 \n \n489,738.50 \n \n980,359.25 \n \n77,559.00 \n \n1,057,918.25 \n \n0.00 \n \n383,987.40 \n \n458,693.54 \n \n69,371.07 \n \n528,064.61 \n \n0.00 \n \n$ 6,412,704.70 $ 7,911,730.67 $ \n \n424,024.95 $ 8,335,755.62 \n \n$ 1,130,645.00 $ \n \n111,551.94 $ \n271,755.31 972,772.43 145,105.05 \n1,178.30 \n \n1,244.96 $ 2,534.78 21,115.40 2,698.05 \n \n112,796,90 274,290.09 993,887.83 147,803.10 \n1,178.30 \n \n$ 1,130,645.00 $ 1,502,363.03 $ \n \n27,593.19 $ 1,529,956.22 \n \n0.00 \n \n468,496.40 \n \n565,668.15 \n \n19,570.84 \n \n585,238.99 \n \n0.00 \n \n$ 1,599,141.40 $ 2,068,031.18 $ \n \n47,164.03 $ 2,115,195.21 \n \n$ \n \n86,064.80 $ \n \n131,917.35 $ \n \n$_---:=== 672.70 \n \n132,590.05 \n \n0.00 \n \n$ 8,097,910.90 $ 10,111,679.20 $ \n \n471,861.68 $ 10,583,540.88 \n \n$ \n \n226,618.40 $ \n \n59,988.00 \n \n339,539.75 $ _ _.9.:9:.,.8:7.:5=.4=3- $ \n \n339,539.75 99,875.43 \n \n0.00 0.00 \n \n$ \n \n286,606.40 $ \n \n339,539.75 $ \n \n99,875.43 $ _......4;=3~9;,.4:.1:5..=1.8.. \n \n$ 8,384,517.30 $ 10,451,218.95 $ \n \n571,737.11 $ 11,022,956.06 $ _ _........................:0;:,.;;0;;;0;:. \n \n$ \n \n27,253.00 \n \n54,208.00 \n \n81,461.00 \n \n$ \n \n81,153.56 $ \n \n81,153.56 \n \n3,704.47 \n \n3,704.47 \n \n$ \n \n84,858.03 $ \n \n84,858.03 $ \n \n0~ .00 \n \n 45 - \n \n , \nSECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \n'.. 0 f G l'0. \n \nx,'I(....~ .' '. . .p . \n \n. Jl*\u003e\u003c'\" - .. ~ \n'If;: \n \n1 ,,,.c'.,' \n \n1-: /~.... ,.~.:-:I \n \n\"\"~:~ i1l\u0026~-J\u003e \n \nr:Jil. :l..l:. ol \n.L-,;--o_. - =\"\"- \n \n~' \n \n..~  \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n \n254 Washington Street. 5.W.. Suite 214 \n \nAtlanta. Georgia 30334-K400 \n \nJuly 12,2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements ofWhite County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated July 12, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nWe did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures. \nCompliance \nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \n \n2000YB-40A \n \n Internal Control Over Financial Reporting \n,..  \nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 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 White County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7541-00-01. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material . weaknesses. However, the reportable condition described above, is considered to be a material weakness. \nThis report is intended solely for the information and use of management, members of the White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n, \n \nRWH:jb 2000YB-40A \n \nRussell W. Hinton State Auditor \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \n  \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W.. Suite 214 Atlanta. Georgia 30334-X400 \nJuly 12, 2001 \n \nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the White County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWhite County 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, 2000. White County 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 of White County Board ofEducation's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 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 White County Board of Education's compliance with those requirements and performing such otherprocedures 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 White County Board of Education's compliance with those requirements. \n \n2000SA-lOA \n \n In our opinion, the White County Board of Education complied, in all material respects, with the requirements referred,. to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. \nInternal Control Over Compliance \nThe management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements 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 ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use of management, members of the White County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \n \nRWH:jb 2000SA-IOA \n \nRu sell W. Hinton State Auditor \n \n   \nSECTION ill \nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n \n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \n \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7541-98-02 FS-7541-99-01 FS-7541-99-02 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses \n \nCORRECTIVE ACTIONIRESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7541-99-02 \n \nWe concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n   \nSECTION IV \nFINDINGS AND QUESTIONED COSTS \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \n \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. TYPe of Report Issued on the Financial Statements \n \n. \n \nThe auditor's opinion on the White County Board of Education's financial statements was \n \nqualified for a scope limitation and for various departures from generally accepted \n \naccounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements \n \nThe audit report for the White County Board of Education disclosed a financial statement \n \nreportable condition related to the following control category. \n \n. \n \nGeneral Fixed Assets \n \nThe reportable condition described above is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe White County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the White County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the White County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .5l0(,i) ofOMB Circular A-B3 The White County Board ofEducation's audit did not disclose audit findings required to be reported by section .5l0(a) ofOMB Circular A-133 .. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Delinquent Children 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n- 1- \n \n \n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n\"'.  \n \nI SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee \nThe White County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7541-00-01 The White County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n- 2- \n \n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":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":9}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Auditors' reports--Georgia","hits":9},{"value":"Financial statements--Georgia","hits":9},{"value":"White County (Ga.). 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