{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2007-h2008","title":"Dawson County Board of Education, Dawsonville, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Report year covers fiscal year.","Has supplements: Dawson County Board of Education, Dawsonville, 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 ... (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 9, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dawson County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dawson County--Auditing--Periodicals","Education--Georgia--Dawson County--Finance--Statistics--Periodicals"],"dcterms_title":["Dawson County Board of Education, Dawsonville, 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-bd26-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DAWSON COUNTY BOARD OF EDUCATION DAWSONVILLE, 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 DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n29 \n \n DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \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 DAWSON 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 21, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dawson County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Dawson 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 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 Dawson 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 ofthe Dawson County Board of Education, as ofJune 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe Dawson County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated May 21, 2009, on our consideration of the Dawson County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dawson 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~~.co-~~ ~-dsell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008ARL-11 \n \n DAWSON COUNTY BOARD OF EDUCATION \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Other - State Programs Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n11,605,382.60 \n \n7,861,477.47 \n \n1,749,695.04 1,935,073.00 \n279,107.94 25,942.89 39,347.61 33,947.25 \n20,833,531.82 46,998,626.52 \n \n$ ==9=1,=36=2==,1=3=2.=14= \n \n$ \n \n7,535.50 \n \n3,965,828.47 \n \n2,030,775.36 \n \n299,512.00 \n \n6,025,681.45 18, 140,548.23 \n \n$ \n \n30,469,881.01 \n \n$ \n \n49,696,594.77 \n \n312,688.89 6,145,828.18 1,251,025.03 \n8,394.85 3 477 719.41 \n \n$ \n \n60,892,251.13 \n \n$ =====9==1'=36=2=,1=3=2.=14= \n \nThe notes to the basic financial statements are an integral part of this statement. - 1- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales 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$ 23,453,903.87 $ \n \n6,826.09 \n \n1,240,298.00 1,214,240.42 \n701,624.99 424,977.86 2,039,520.31 309,781.00 2,458,559.08 1,541,138.18 263,270.83 \n943.03 \n \n535,889.58 32,902.57 \n1,806,058.48 1,323,333.27 \n \n146,060.00 946,224.60 \n \n$ 37 346 441.47 $ 1,099,110.69 \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$ 11,671,592.13 $ \n565,839.29 512,402.11 431,191.45 147,630.08 733,329.12 104,996.78 1,027,724.43 422,629.56 89,119.91 \n691.44 \n6,641.21 752,803.77 \n$ 16,466,591.28 $ \n \n330,634.12 $ \n10,884.29 1,051.33 8,419.65 \n31,410.40 77,574.00 \n5,600.42 23,921.16 \n489,495.37 $ \n \n-11,444,851.53 \n-674,458.71 -701,838.31 -259,549.25 -276,296.45 -1,297,771.54 -204,784.22 -1,399,424.25 -1,040,934.62 -174, 150.92 \n-251.59 \n-389,829.58 -20,660.94 -83,108.95 -1,323,333.27 \n-19,291,244.13 \n \n$ \n \n17,403,814.70 \n \n520,691.37 \n \n6,302,238.27 563,132.54 \n1,041,530.88 529,177.54 \n \n$ \n \n26,360,585.30 \n \n$ \n \n7,069,341.17 \n \n53,822,909.96 \n \n$ ===60=,8=9..,2,=25=1..,.1==3 \n \n-3- \n \n DAWSON COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2008 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories Prepaid Items \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 5,386,083.50 $ \n \n87,260.83 $ 6,132,038.27 $ \n \n7,861,477.47 \n \n456,163.61 1,935,073.00 \n279,107.94 25,942.89 39,347.61 33,947.25 \n \n1,015,356.06 \n \n13,789.91 \n \n11,605,382.60 7,861,477.47 \n1,485,309.58 1,935,073.00 \n279,107.94 25,942.89 39,347.61 33,947.25 \n \nTotal Assets \n \n$ 8,155,665.80 $ 8,964,094.36 $ 6,145,828.18 $=====2=3,=26=5=,5=8=8.=34= \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Capital Projects State Programs \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \nTotal Fund Balances \n \n$ \n \n7,535.50 \n \n3,965,828.47 \n \n$ 2,030,775.36 \n \n299,512.00 \n \n$ 3,973,363.97 $ 2,330,287.36 \n \n$ \n \n7,535.50 \n \n3,965,828.47 \n \n2,030,775.36 \n \n299,512.00 \n \n$ \n \n6,303,651.33 \n \n$ 312,688.89 \n \n$ \n \n$ 6,145,828.18 \n \n$ 6,633,807.00 \n \n8,394.85 \n \n173,949.91 \n \n3,687,268.18 \n \n$ 4,182,301.83 $ 6,633,807.00 $ 6,145,828.18 $ \n \n312,688.89 6,145,828.18 6,633,807.00 \n8,394.85 \n173,949.91 \n3,687,268.18 \n16,961,937.01 \n \nTotal Liabilities and Fund Balances \n \n$ 8,155,665.80 $ 8,964,094.36 $ 6,145,828.18 $====2.,,,3,=26=5=,5=8=8=.3=4 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DAWSON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases Payable Unamortized Bond Premiums \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 16,961,937.01 \n \n$ 2,921,507.23 17,912,024.59 5,017,232.45 48,128,333.19 3,109,920.63 -9,256,859.75 \n \n67,832, 158.34 \n \n264,385.46 \n \n$ -21,740,000.00 -1,807,289.13 -618,940.55 \n \n-24, 166,229.68 \n \n$ 60,892,251.13 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nExcess of Revenues over {under) Expenditures \nOTHER FINANCING SOURCES {USES} \nProceeds of Refunding Bonds Payment to Bond Refunding Escrow Agent Capital Leases 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$ 17,321,874.94 547,098.54 $ \n14,702,594.24 1,841,571.05 1,099,110.69 182,340.10 529,177.54 \n \n$ \n6,302,238.27 411,921.37 \n827,540.63 \n \n$ 36,223,767.10 $ 7,541,700.27 $ \n \n520,638.06 $ \n16,034.00 \n31,650.15 \n \n17,842,513.00 6,865,370.81 15,114,515.61 1,841,571.05 1,099,110.69 1,041,530.88 \n529,177.54 \n \n568,322.21 $ 44,333,789.58 \n \n$ 22,707,915.65 $ \n \n69,183.52 \n \n1,240,298.00 1,324,300.92 \n662,385.17 421,187.62 2,011,133.95 307,841.00 2,289,954.70 1,490,077.24 263,270.83 \n943.03 535,889.58 \n12,712.06 1,719,818.38 \n284,028.87 \n \n$ \n64,723.14 \n9,203,461.24 \n \n146,782.86 \n \n158,202.43 \n \n18,581.31 \n \n91,797.57 \n \n$ 35,417,121.17 $ 9,587,367.90 $ \n \n$ 806,645.93 $ -2,045,667.63 $ \n \n$ 22,777,099.17 \n \n1,940.00 \n \n1,240,298.00 1,324,300.92 \n662,385.17 421,187.62 2,011,133.95 309,781.00 2,354,677.84 1,490,077.24 263,270.83 \n943.03 535,889.58 \n12,712.06 1,719,818.38 9,467,490.11 \n \n4,650,000.00 64,984.53 \n1,252,799.88 \n \n4,954,985.29 84,984.53 \n1,363,178.76 \n \n5,969,724.41 $ 50,974,213.48 \n \n-5,401,402.20 $ -6,640,423.90 \n \n$ \n \n$ 219,181.00 \n \n$ \n \n250,000.00 \n \n-250,000.00 -10,527,952.38 \n \n$ \n \n-30,819.00 $ -10,277,952.38 $ \n \n$ 775,826.93 $ -12,323,620.01 $ \n \n3,406,474.90 \n \n18,957,427.01 \n \n5,815,000.00 $ 5,815,000.00 \n \n-5,728,751.29 \n \n-5,728,751.29 \n \n219,181.00 \n \n10,527,952.38 10,777,952.38 \n \n-10,777,952.38 \n \n10,614,201.09 $ 305,429.71 \n \n5,212,798.89 $ -6,334,994.19 \n \n933,029.29 23,296,931.20 \n \nFund Balances - Ending \n \n$ 4,182,301.83 $ 6,633,807.00 $ \n \n6,145,828.18 $ 16,961,937.01 \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n DAWSON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \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 carrying value of the building/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: \n2008 Refunding Bonds Issued $5,815,000.00 \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments Payments to Bond Refunding Agent \nTotal Long-Term Debt Repayments \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nAmortization of Bond Premium \n \n$ -6,334,994.19 \n \n$ 9,828,384.82 -1,253,503.25 \n \n8,574,881.57 \n \n81,993.08 \n \n-55,919.80 \n \n-5,815,000.00 -219, 181.00 \n \n$ 4,650,000.00 304,985.29 \n5,635,000.00 \n \n10,589,985.29 \n \n247,576.22 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 7 069 341.17 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2008 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ 117,093.93 \n$ 117,093.93 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dawson County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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 Dawson 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 DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District 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 type: \n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund \n- 11 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nliability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. 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 ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n- 12 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(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 receivab1es. \n \nPROPERTY TAXES \n \nThe Dawson County Board of Commissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on July 9, 2007 (levy date). Taxes were due on December 1, 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 Dawson County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.75% 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 $17,321,874.94 and for school bonds amounted to $520,638.06. \n \nTax millage rates levied for the 2007 tax year (calendar year) for the Dawson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.646 mills 0.400 mills \n \n14.046 mills \n \n- 13 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $6,302,238.27 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. \nINVENTORIES \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. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2008, are recorded as prepaid items. \nCAPITAL ASSETS \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. \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \n- 14 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll $ 100,000.00 $ 100,000.00 $ 10,000.00 \n \nNIA 20 years 20 to 80 years 8 to 15 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 ofmajor capital facilities. In the District-wide financial statements, bond premiums are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are not reported as deferred charges and amortized over the life of the debt. To conform to generally accepted accounting principles, issuance costs should be deferred over the life ofthe bonds using the straight-line method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 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 \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, State programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \n \n- 15 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \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 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. \n- 16 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS \n \nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $20,550,584.51. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n20,213,260.21 \n \n3 \n \n0.00 \n \nTotal \n \n$20,213,260.21 \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 17 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July l. 2007 \n \nIncreases \n \nDecreases \n \nBalances June 30. 2008 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,793,790.79 $ 127,716.44 \n \n$ 2,921,507.23 \n \n9,087,062.29 9,481,487.38 $ 656,525.08 17.912.024.59 \n \nTotal Capital Assets Not Being Depreciated $11.880,853.08 $ 9,609,203.82 $ 656,525.08 $20,833,531.82 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$47,556,040.84 $ 656,525.08 $ 84,232.73 $48,128,333.19 \n \n3,256,552.63 219,181.00 365,813.00 3,109,920.63 \n \n5,121,445.50 \n \n104,213.05 5,017,232.45 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n5,339,925.36 2,288,674.54 \n873,095.58 \n \n735,973.52 269,093.10 248,436.63 \n \n28,312.93 365,813.00 104,213.05 \n \n6,047,585.95 2,191,954.64 1.017.319.16 \n \nTotal Capital Assets, Being Depreciated, Net $47.432.343.49 $ -377.797.17 $ 55,919.80 $46,998,626.52 \n \nGovernmental Activity Capital Assets - Net $59,313,126.51 $ 2,231,406.65 $ 112.444,88 $67,832,158.34 \n \nCapital assets being acquired under capital leases as of June 30, 2008, are as follows: \n \nGovernmental Funds \n \nBuildings and Improvements Equipment Less: Accumulated Depreciation \n \n$ 1,895,095.38 877,324.00 477,049.16 \n \n$ 2,295,370.22 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Community Services Food Services \n \n$ 780,338.04 \n \n$ 32,961.14 3,183.77 \n25,497.42 95,120.86 227,001.13 16,959.88 \n \n400,724.20 72,441.01 \n \n$ 1,253,503.25 \n \n- 18 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds 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 ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: \n \nDistrict-wide Capital Projects Bond Proceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Capital Acquisitions \n \n$ 6,132,038.27 $ 87,260.83 \n$ 7,861,477.47 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2008, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nDistrict-wide \n \nGeneral \n \nCapital \n \nFund \n \nProjects \n \nDistrict-wide Capital Projects Debt Service Fund \n \n$ 250,000.00 $10,527,952.38 \n \nTotal \n \n$ 250,000.00 $10.527.952.38 \n \nTransfers are used (1) to move payments for the GSBA lease from the General Fund to the Capital Projects Fund and (2) to move SPLOST revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund to pay current year bond principal and interest as required in the bond resolution. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n- 19 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2007 2008 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n$ \n \n0.00 $ \n \n6 166.40 $ \n \nClaims Paid \n \nEnd of Year Liability \n \n0.00 $ \n \n0.00 \n \n6,166.40 $ \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 $1,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \nAll Employees Superintendent Principals \n \nAmount \n$ 100,000.00 $ 150,000.00 $ 10,000.00 \n \nNote 9: OPERATING LEASES \n \nDawson County Board ofEducation has entered into various leases as lessee for copiers and system telecommunications. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2008, for governmental funds amounted to $183,227.77. Future minimum lease payments for these leases are as follows: \n \n- 20 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 9: OPERATING LEASES \n \nYear Ending \n \nGovernmental Funds \n \n2009 2010 2011 2012 2013 \n \n$ 73,047.11 58,899.68 46,949.30 22,364.00 12,901.00 \n \nTotal \n \n$ 214,161.09 \n \nNote 10: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes 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 ofGeorgia limits the aggregate amount ofshort-term debtto 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 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 \nTax Anticipation Notes \n \n$====o~.o=o $1.000,000.00 $1,000,000.00 $====0-.0===0 \n \nNote 11: LONG-TERM DEBT \n \nCAPITAL LEASES The Dawson County Board ofEducation entered into an agreement dated January 9, 2004, with the Georgia School Board Association for the construction and subsequent lease of an addition to the Dawson County High School. Under the terms of the agreement, the School District will make annual payments through January 1, 2014. The Dawson County Board of Education also entered into various lease agreements for buses. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \n \nADVANCE REFUNDING During fiscal year 2008, the Dawson County Board of Education issued $5,815,000.00 in General Obligation Refunding Bonds to advance refund $5,635,000.00 ofoutstanding bonds. The bond issue of$5,815,000.00 less underwriters and bond issue costs of$64,984.53 and less $21,264.18 for the interest payment due October 1, 2008 provided net proceeds of $5,728,751.29. The total net \n \n- 21 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 11: LONG-TERM DEBT \nproceeds were deposited in an irrevocable trust with an escrow agent to secure the payment of the 1997A Bond issue. The 1997A Bond issue was paid in full on May 20, 2008. As a result, the 1997A Series Bonds are considered defeased and the liability for these portions has been removed from the District-wide Statements ofNet Assets. The Dawson County Board ofEducation refunded the aforementioned bonds to reduce its total Debt Service payments over seven years beginning subsequent to fiscal year 2008 by $374,619.95. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nGeneral Government - Series 2005A General Government - Series 2005B General Government - Refunding - Series 2008 \n \n4.00% - 5.25% 5.50% \n2.702% \n \nAmount \n$ 5,925,000.00 10,000,000.00 5,815,000.00 \n \n$21,740,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \n \nBalance Jul~ I, 2007 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30, 2008 \n \nDue Within One Year \n \nG.O. Bonds \n \n$26,210,000.00 $ 5,815,000.00 $10,285,000.00 $21,740,000.00 $ 5,415,000.00 \n \nCapital Leases \n \n1,893,093.42 \n \n219,181.00 \n \n304,985.29 1,807,289.13 \n \n363,105.23 \n \nBond Premiums Amortized \n \n866,516.77 \n \n247,576.22 \n \n618,940.55 \n \n247,576.22 \n \n$28,262,610.12 $ 6,034,181.QQ $IQ,831,561.Sl $2~. 166,222.68 $ 6,025,681.45 \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 \nCapital Leases \n \nPrincipal \n \nInterest \n \n2009 2010 2011 2012 2013 2014 \n \n$ 363,105.23 $ 112,854.72 \n \n306,766.09 \n \n103,783.17 \n \n214,065.37 \n \n96,530.41 \n \n216,383.71 \n \n94,212.07 \n \n158,202.43 \n \n91,797.57 \n \n548,766.30 \n \n91,797.57 \n \nTotal Principal and Interest \n \n$1,807,289.13 $ 590,975.51 \n \n-22 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 11: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \nUnamortized Bond \nPremium \n \n2009 2010 2011 2012 2013 2014 - 2015 \n \n$ 5,415,000.00 $ 6,150,000.00 6,630,000.00 825,000.00 865,000.00 1,855,000.00 \n \n858,316.60 597,934.20 277,734.10 95,785.90 \n73,494.40 75,791.10 \n \n$ 247,576.22 247,576.22 123,788.11 \n \nTotal Principal and Interest $ 21,740,000.00 $ 1,979,056.30 $ 618,940.55 \n \nNote 12: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $806,458.99 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 $758,645.09 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $43,772.90 \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 $4,041.00 \n \nNote 13: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008: \n \n- 23 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 13: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nDawson County Middle School Riverview Elementary School Dawson County Bus Shop \n \n$ 8,634.00 6,955,935.92 1,626,244.74 \n \n$ 8,590,814.66 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 14: 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 15: POSTEMPLOYMENT BENEFITS \n \nGeorgia Retiree Health Benefit Fund \n \nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code 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. \n \nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. \n \n- 24 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 15: POSTEMPLOYMENT BENEFITS \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \n \nTeachers Non-Certificated Employees \n \n18.534% of state-based salaries $162.72 per month \n \nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $3,677,713.24, which equaled the required contribution. \n \nNote 16: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 1,888,605.38 $1,766,153.16 $ 1,613,373.00 \n \n- 25 - \n \n (This page left intentionally blank) \n \n DAWSON COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 17,672,648.00 $ 17,672,648.00 $ 17,321,874.94 \n \n547,098.54 \n \n13,596,698.00 \n \n13,422,846.00 \n \n14,702,594.24 \n \n1,655,212.00 \n \n1,825,509.00 \n \n1,841,571.05 \n \n958,527.00 \n \n958,527.00 \n \n1,099,110.69 \n \n35,700.00 \n \n35,700.00 \n \n182,340.10 \n \n53,000.00 \n \n57,000.00 \n \n529,177.54 \n \n$ 33,971,785.00 $ 33,972,230.00 $ 36,223,767.10 \n \n$ 22,440,182.00 $ 22,796,214.00 $ 22,707,915.65 \n \n1,301,099.00 1,229,270.00 \n720,045.00 389,423.00 2,016,737.00 331,632.00 2,377,181.00 1,428,023.00 263,756.00 \n24,747.00 1,691,912.00 \n280,000.00 \n \n1,305,513.00 1,324,373.00 \n720,045.00 397,494.00 2,016,737.00 331,632.00 2,378,656.00 1,425,203.00 263,756.00 \n6,300.00 \n27,212.00 1,695,912.00 \n280,000.00 \n \n1,240,298.00 1,324,300.92 \n662,385.17 421,187.62 2,011,133.95 307,841.00 2,289,954.70 1,490,077.24 263,270.83 \n943.03 535,889.58 \n12,712.06 1,719,818.38 \n264,028.87 165,364.17 \n \n$ 34,494,007.00 $ 34,969,047.00 $ 35,417,121.17 \n \n$ \n \n-522,222.00 $ \n \n-996,817.00 $ \n \n806,645.93 \n \n$ \n \n22,312.00 $ \n \n22,312.00 $ \n \n219,181.00 \n \n-272,312.00 \n \n-272,312.00 \n \n-250,000.00 \n \n$ \n \n-250,000.00 $ \n \n-250,000.00 $ \n \n-30,819.00 \n \n$ \n \n-772,222.00 $ -1,246,817.00 $ \n \n775,826.93 \n \n3,406,474.90 \n \n3,406,474.90 \n \n3,406,474.90 \n \n34 744.74 \n \n4470.56 \n \n$ 2,668,997.64 $ 2, 164,128.46 $ 4,182,301.83 \n \nNotes to the Schedule of Revenues, Exi:1enditures 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 DAWSON 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 \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 Improving Teacher Quality State Grants Mathematics and Science Partnerships State Grants for Innovative Programs Title I Grants to Local Educational Agencies \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ \n \n1,554,395.09 \n \n$ \n \n1,554,395.09 \n \n10.550 10.665 \n \nNIA \n \n69,396.82 \n \nNIA \n \n(3) \n \n$ \n \n1,623,791.91 \n \n84.027 84.173 \n \nN/A $ \nNIA \n$ \n \n480,006.53 12,029.00 \n492,035.53 \n \n84.048 84.367 84.366 84.298 84.010 \n \nN/A \n \n26,779.00 \n \nNIA \n \n133,560.93 \n \nN/A \n \n69,262.22 \n \nNIA \n \n4,512.55 \n \nNIA \n \n449 957.11 \n \n$ \n \n1176 107.34 \n \nTotal Federal Financial Assistance \nN/A = Not Available \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 ($121,441.72) 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 $14,969.45, 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 Dawson 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- 28- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities 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 Mid-term Adjustment Hold Harmless Vocational Supervisors Food Services Vocational Education Amended Formula Adjustment Other State Programs Graduation Coaches Health Insurance National Teacher Certification Preschool Handicapped Program Remedial Summer School Teachers' Retirement Virtual Schools \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice 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 \n111,129.25 \n \n$ \n \n111,129.25 \n \n610,547.00 304,574.00 1,970,657.00 304,159.00 984,720.00 131,499.00 1,688,009.00 1,339,545.00 557,658.00 2,175,076.00 377,833.00 \n56,084.00 134,599.00 \n50,154.00 292,389.00 \n88,623.00 56,098.00 \n428,190.00 595,898.00 704,668.00 \n393,463.00 77,574.00 20,000.00 74,260.00 \n158,970.00 17,327.00 83,986.00 87,498.00 \n-313,260.00 \n114,816.00 758,645.09 \n40,143.00 94,497.00 \n3,096.00 43,772.90 \n475.00 \n \n610,547.00 304,574.00 1,970,657.00 304,159.00 984,720.00 131,499.00 1,688,009.00 1,339,545.00 557,658.00 2,175,076.00 377,833.00 56,084.00 134,599.00 50,154.00 292,389.00 \n88,623.00 56,098.00 \n428,190.00 595,898.00 704,668.00 \n393,463.00 77,574.00 20,000.00 74,260.00 \n158,970.00 17,327.00 83,986.00 87,498.00 \n-313,260.00 \n114,816.00 758,645.09 \n40,143.00 94,497.00 \n3,096.00 43,772.90 \n475.00 \n \n$ 4,041.00 \n \n411,921.37 \n \n411,921.37 4,041.00 \n \n81181.00 \n \n81181.00 \n \nSee notes to the basic financial statements. \n \n$ 14,702,594.24 $ \n \n411 921.37 $ 15,114,515.61 \n \n-29- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe acquisition, construction and equipping of two elementary schools, one new middle school and necessary furnishings and equipment, including the acquisition of all necessary property. \nThe acquiring, constructing and equipping one new middle school; acquiring, constructing and equipping one new elementary school; adding to, renovating, repairing, improving and equipping existing school buildings; acquiring miscellaneous new equipment, school buses and other vehicles; acquiring land for new or existing schools; adding to, renovating, repairing, acquiring, improving and equipping school system buildings and facilities. \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$ 20,535,000.00 $ 20,535,000.00 $ 1,954,437.88 $ 18,580,562.12 Completed \n \n29,019,000.00 \n \n29,019,000.00 \n \n7,382,930.02 10,047,456.93 Ongoing \n \n$ 49,554,000.00 $ 49,554,000.00 $ 9,337,367.90 $ 28,628,019.05 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dawson County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advanced funding for the above projects as follows: \n \nPrior Years \n \n$ 2,973,905.42 \n \nCurrent Year \n \n951,743.75 \n \nTotal \n \n$ 3,925,649.17 \n \nSee notes to the basic financial statements. \n \n- 30- \n \n DAWSON 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 II \n \nCategory Ill \n \nCategory IV \n \nCategory V \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n899,435.00 $ \n414,536.00 2,772,056.00 \n415,902.00 1,386,403.00 \n \n1,582,017.39 $ \n825.13 3,779,191.92 \n277,808.27 2,178,245.42 \n \n179,568.00 2,377,749.00 1,892,877.00 \n765,000.00 3,071,843.00 \n509,694.00 90,782.00 \n188,753.00 73 198.00 \n \n140,176.19 2,787,694.09 3,120,416.83 \n774,454.31 \n180,620.15 2,323,430.76 \n407,832.00 331,217.74 279,669.62 \n49,380.53 213,575.76 \n82,369.96 \n \n66,903.51 $ \n105,210.21 75,244.01 \n \n1,648,920.90 825.13 \n3,884,402.13 277,808.27 \n2,253,489.43 \n \n148,847.27 118,839.60 \n65,143.74 \n \n140,176.19 2,936,541.36 3,239,256.43 \n839,598.05 \n \n15,705.87 \n3,230.86 3,476.31 \n9,221.88 150.75 \n \n180,620.15 2,339,136.63 \n407,832.00 334,448.60 283,145.93 \n49,380.53 222,797.64 \n82,520.71 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n15,037,796.00 $ 18,508,926.07 $ 611,974.01 $ 19,120,900.08 \n \nMedia Center Program Staff and Professional Development \n \n411,663.00 79 427.00 \n \n560,468.60 34 798.56 \n \n85,222.12 46 172.44 \n \n645,690.72 80 971.00 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n15,528,886.00 $ 19,104,193.23 $ 743,368.57 $ 19,847,561.80 \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 21, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson 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 ofDawson County Board ofEducation as ofand for the year ended June 30, 2008, which collectively comprise Dawson County Board of Education's basic financial statements and have issued our report thereon dated May 21, 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 Dawson County Board ofEducation's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Dawson County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dawson County Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \n2008YB-30 \n \n A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Dawson 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 Dawson County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Dawson County Board of Education's internal control. We consider item FS-6421-08-01 in the accompanying Schedule ofFindings 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 Dawson 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 believe that the significant deficiency described above is not a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dawson 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 a certain matter that we have reported to management of Dawson County Board of Education in a separate letter dated May 21, 2009. \nDawson County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Dawson County Board of Education's response and, accordingly, we express no opinion on it. \n2008YB-30 \n \n This report is intended solely for the information and use ofmanagement, members ofthe Dawson 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. \nRespectfully submitted, \n~~j}Q ~- ~ \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008YB-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 \nMay 21, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dawson County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2008. Dawson 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 Dawson County Board of Education's management. Our responsibility is to express an opinion on Dawson 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 Dawson County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2008SA-10 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dawson County Board of Education's compliance with those requirements. \nIn our opinion, the Dawson County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2008. \nInternal Control Over Compliance \nThe management of Dawson 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 Dawson 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 ofthe Dawson County Board ofEducation'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 ofa 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 t4e first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \n2008SA-10 \n \n This report is intended solely for the information and use ofmanagement, members ofthe Dawson 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 2008SA-10 \n \nRus ell W. Hinton, CPA, CGFM State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DAWSON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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 Dawson County Board ofEducation's financial statements was unqualified. \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Dawson County Board ofEducation disclosed a financial statement significant deficiency related to the following control categories. \nExpenditures/Liabilities/Disbursements Revenues/Receivables/Receipts \nThe significant deficiency described above is not considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit of the Dawson County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Dawson County Board ofEducation did not disclose any significant deficiencies in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dawson County Board of Education'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 Dawson County Board of Education'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 \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The Dawson County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n- 1- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS REVENUES/RECEIVABLES/RECEIPTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6421-08-01 \n \nCondition: \n \nThe accounting procedures ofthe School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nRevenues/Receivables/Receipts Receipts did not have adequate supporting documentation. \n \nExpenditures/Liabilities/Disbursements The following deficiencies were noted during our tests of transactions: I. Vouchers did not agree with invoices. 2. Vouchers did not have an invoice attached. 3. Purchase orders were not dated. 4. Vouchers did not always show documentation of receipt of the products. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-2- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2008 \nFinding Control Number: FS-6421-08-01 \nWe concur with this finding. All forms have been standardized and will be updated to include other pertinent information. The Superintendent will reiterate to all principals the requirement to follow the purchase and deposit standards. The Finance Director will meet with each Principal and bookkeeper to review the accounting guidelines and monitor their progress thru internal audits. These changes will be implemented by June 2009. \nContact Person: Jamie Ulrich, Finance Director Phone: (706) 265-3246 Ext. 1006 e-mail: julrich@dawson.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2006-h2007","title":"Dawson County Board of Education, Dawsonville, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2007-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Report year covers fiscal year.","Has supplements: Dawson County Board of Education, Dawsonville, 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 ... (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 9, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dawson County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dawson County--Auditing--Periodicals","Education--Georgia--Dawson County--Finance--Statistics--Periodicals"],"dcterms_title":["Dawson County Board of Education, Dawsonville, 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-bd26-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DAWSON COUNTY BOARD OF EDUCATION \nDAWSONVILLE, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n25 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n27 \n \n DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n28 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n29 \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 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 10, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dawson 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 Dawson 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 GovernmentAuditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Dawson County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \n \n2007ARL-11 \n \n In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Dawson County Board of Education, as ofJune 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe Dawson County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated March 10, 2008, on our consideration of the Dawson County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dawson 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. \n2007ARL-l l \n \n A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n-::R ~-oo. L6.-4k ~ul:en W. Hinton, CPA, CGFM State Auditor \nRWH:as 2007ARL-11 \n \n DAWSON COUNTY BOARD OF EDUCATION \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \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. - 1- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n9,760,384.29 \n \n15,062,397.00 \n \n1,620,927.26 1,876,847.38 \n364,377.59 59,257.13 34,637.05 \n \n2,793,790.79 9,087,062.29 5,121,445.50 47,556,040.84 3,256,552.63 -8,501,695.48 \n \n$ =====8=8'=09=2=,0=2=4=.2=7 \n \n$ \n \n46,040.06 \n \n3,680,998.06 \n \n863,882.00 \n \n708,584.00 \n \n5,231,505.10 23,738,105.09 \n \n$ \n \n34,269,114.31 \n \n$ \n \n44,199,987.48 \n \n318,445.46 4,724,967.50 1,309,087.70 3,270,421.82 \n \n$ \n \n53,822,909.96 \n \n$ ==8=8,=0=92=,0=2=4=.2=7 \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debi \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 Intangible Recording Tax Real Estate Investment Earnings Miscellaneous \nSpecial Items Loss on Sale of Building \nTotal General Revenues and Special Items \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 20,412,969.45 $ \n \n17,150.08 \n \n1,202,543.28 1,028,976.66 \n617,433.16 355,927.77 1,886,295.51 295,066.51 2,304,230.58 942,046.13 246,089.01 \n4,215.83 \n \n356,632.54 93,142.91 \n1,503,728.05 1,557,884.79 \n \n113,626.01 188.39 \n921,155.60 \n \n$ 32,807,182.18 $ 1,052,120.08 \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$ 11,199,058.56 $ \n594,149.13 383,615.32 411,784.75 120,096.04 703,953.36 \n98,826.41 1,037,900.97 \n442,593.00 81,477.70 60.44 \n672,801.58 \n$ 15,746,317.26 $ \n \n52,844.51 $ \n318.06 224.29 1,796.33 6,343.13 164,083.32 \n1,194.93 5,354.23 \n232,158.80 $ \n \n-9, 143,916.30 \n-608,394.15 -645,361.34 -205,330.35 -235,607.44 -1,180,545.82 -196,240.10 -1,259,986.48 -335,369.81 -164,611.31 \n-4,155.39 \n-243,006.53 -91,759.59 95,583.36 \n-1,557,884.79 \n-15,776,586.04 \n \n$ \n \n16,196,879.63 \n \n506,118.49 \n \n6,342,843.26 759,591.44 266,970.87 \n1,337,520.77 438,530.17 \n \n-41 574.45 \n \n$ \n \n25,806,880.18 \n \n$ \n \n10,030,294.14 \n \n43,792,615.82 \n \n$ \n \n53,822,909.96 \n \n-3- \n \n DAWSON COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2007 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 4,376,098.11 $ 4,462,544.01 $ 15,062,397.00 \n \n377,604.76 1,876,847.38 \n364,377.59 59,257.13 34,637.05 \n \n1,049,643.00 \n \n921,742.17 $ 11,287.12 \n \n9,760,384.29 15,062,397.00 \n1,438,534.88 1,876,847.38 \n364,377.59 59,257.13 34 637.05 \n \n$ 7,088,822.02 $ 20,574,584.01 $ 933,029.29 $ 28,596,435.32 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries 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 \nTotal Fund Balances \n \n$ \n \n1,349.06 $ \n \n3,680,998.06 \n \n44,691.00 \n863,882.00 708,584.00 \n \n$ 3,682,347.12 $ 1,617,157.00 \n \n$ \n \n46,040.06 \n \n3,680,998.06 \n \n863,882.00 \n \n708,584.00 \n \n$ 5,299,504.12 \n \n$ 283,808.41 $ 3,791,938.21 $ \n34,637.05 15, 165,488.80 \n207,226.70 \n2,880,802.74 \n$ 3,406,474.90 $ 18,957,427.01 $ \n \n$ 933,029.29 \n \n283,808.41 4,724,967.50 \n34,637.05 15,165,488.80 \n \n207,226.70 \n \n2,880,802.74 \n \n933,029.29 $ 23,296,931.20 \n \nTotal Liabilities and Fund Balances \n \n$ 7,088,822.02 $ 20,574,584.01 $ 933,029.29 $ 28,596,435.32 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DAWSON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases Unamortized Bond Premiums \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 23,296,931.20 \n \n$ 2,793,790.79 9,087,062.29 5,121,445.50 \n47,556,040.84 3,256,552.63 -8,501,695.48 \n \n59,313,196.57 \n \n182,392.38 \n \n$ -26,210,000.00 -1,893,093.42 -866.516.77 \n \n-28.969.610.19 \n \n$ 53,822,909.96 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over {under) Expenditures \nOTHER FINANCING SOURCES {USES) \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources {Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 16,019,851.86 1,003,384.22 $ \n14,056,646.26 1,736,593.00 1,052,120.08 151,354.61 438,530.17 \n \n$ 6,342,843.26 \n185,236.80 \n1,128,792.51 \n \n$ 34,458,480.20 $ 7,656,872.57 $ \n \n500,753.88 $ 23,177.11 \n57,373.65 \n \n16,520,605.74 7,369,404.59 \n14,241,883.06 1,736,593.00 1,052,120.08 1,337,520.77 438,530.17 \n \n581,304.64 $ 42,696,657.41 \n \n$ 21,075,623.33 \n \n$ 21,075,623.33 \n \n1,202,543.28 1,110,675.66 \n664,165.32 359,223.97 1,913,792.26 300,866.51 2,188,493.76 1,443,642.38 250,022.01 \n4,215.83 470,258.55 110,701.59 1,589,728.60 185,009.53 $ \n \n$ 9,861,611.05 \n \n1,950.00 \n \n1,202,543.28 1,110,675.66 \n664,165.32 359,223.97 1,913,792.26 302,816.51 2,188,493.76 1,443,642.38 250,022.01 \n4,215.83 470,258.55 110,701.59 1,589,728.60 10,046,620.58 \n \n147,992.16 18 877.24 \n \n150,225.42 99 774.58 \n \n3,700,000.00 1,456,160.00 \n \n3,998,217.58 1,574,811.82 \n \n$ 33,035,831.98 $ 1o, 111,611.05 $ 5,158,110.00 $ 48,305,553.03 \n \n$ 1,422,648.22 $ -2,454, 738.48 $ -4,576,805.36 $ -5,608,895.62 \n \n$ 124,596.00 \n \n$ 124,596.00 \n \n61,363.51 \n \n$ 4,265,325.00 \n \n4,326,688.51 \n \n$ -4,326,688.51 \n \n-4,326,688.51 \n \n$ 185,959.51 $ -4,326,688.51 $ 4,265,325.00 $ 124,596.00 \n \n$ 1,608,607.73 $ -6,781,426.99 $ -311,480.36 $ -5,484,299.62 \n \n1,797,867.17 25,738,854.00 \n \n1,244,509.65 28,781,230.82 \n \nFund Balances - Ending \n \n$ 3,406,474.90 $ 18,957,427.01 $ 933,029.29 $ 23,296,931.20 \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n DAWSON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the loss on the sale of the building/equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the building/equipment sold. \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nAmortization of Bond Premium \n \n$ -5,484,299.62 \n \n$ 12,510,338.81 -1,257,760.79 \n \n11,252,578.02 \n \n182,392.38 \n \n-41,574.45 \n \n-124,596.00 \n \n$ 3,700,000.00 298,217.58 \n \n3,998,217.58 \n \n247,576.23 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 10,030,294.14 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2007 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS \n$ 127,087.53 \n$ 127,087.53 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dawson County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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 Dawson 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-9- \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n 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 type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities are reported as other financing sources. \n- 10 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n \n- 11 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(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 Dawson County Board of Commissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on July 28, 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 Dawson County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.75% 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, 2007, for maintenance and operations amounted to $16,019,851.86 and for school bonds amounted to $500,753.88. \n \nTax millage rates levied for the 2006 tax year (calendar year) for the Dawson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.646 mills 0.400 mills \n \n14.046 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $6,342,843.26 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 12 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING .POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the 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 ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll $ 100,000.00 $ 100,000.00 $ 100,000.00 \n \nNIA 20 years 20 to 80 years 8 to 15 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 13 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \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. \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 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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n- 14 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \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 ofthe State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $25,884,161.51. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \nby its trust department or agent in the School District's name, Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n25,070,721.53 \n \n3 \n \n413,439.98 \n \nTotal \n \n$25,484,161.51 \n \n- 15 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances July I, 2006 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2007 \n \n$ 2, I07,942.00 $ 685,848.79 \n \n$ 2,793,790.79 \n \n825,541.00 8,786,188.29 $ 524,667.00 9,087,062.29 \n \n$ 2,933,483.00 $ 9,472,037.08 $ 524,667.00 $ 11,880,853.08 \n \n$48,097,617.00 $ 335,052.95 $ 876,629.11 $47,556,040.84 \n \n3,257,990.00 \n \n263,192.38 \n \n264,629.75 3,256,552.63 \n \n1,292,858.00 2,964,723.40 \n \n-863,864.10 5,121,445.50 \n \n4,541,564.00 2,235,126.00 \n703,065.00 \n \n807,509.47 280,220.74 170,030.58 \n \n9,148.11 226,672.20 \n \n5,339,925.36 2,288,674.54 \n873,095.58 \n \n$45,168,710.00 $ 2,305,207.94 $ 41,574.45 $47,432,343.49 \n \n$ 48,102,123,QQ $ ll,111,245,Q2 $ 566,241,45 $ 52,313, I96.51 \n \nCapital assets being acquired under capital leases as of June 30, 2007, are as follows: \n \nGovernmental Funds \n \nBuildings and Improvements Equipment Less: Accumulated Depreciation \n \n$ 1,895,095.38 658,143.00 329,841.72 \n \n$ 2,223,396.66 \n \nCurrent year depreciation expense by function is as follows: \n \n- 16 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nInstruction Support Services \nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Community Services Food Services \n \n$ 769,536.11 \n \n$ 32,961.14 3,183.77 \n25,497.42 90,034.99 243,589.01 16,959.88 \n \n412,226.21 75,998.47 \n \n$ 1,257,760.79 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds 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 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 \nRestricted Investments: Capital Acquisitions \n \n$ 3,791,938.21 \n \n$ 921,742.17 \n \n$ 553,590.37 $ 117,015.43 \n \n$ 15,062,397.00 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2007, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nGeneral Fund Debt Service Fund \n \n$ 61,363.51 4,265,325.00 \n \nTotal \n \n$ 4,326,688.51 \n \n- 17 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 7: INTERFUND TRANSFERS \n \nTransfers are used (1) to move excess local funds from the Regular Capital Projects to the General Fund and (2) to move SPLOST revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund to pay current year bond principal and interest as required in the bond resolution. \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 system for its general insurance 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 \n2006 2007 \n \n$ \n \n0.00 $ \n \n6 094.00 $ \n \n6,094.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \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 $1,000,000.00. \n \n- 18 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nAll Employees Superintendent Principals \n \n$ 100,000.00 $ 150,000.00 $ 10,000.00 \n \nNote 9: OPERATING LEASES \n \nDawson County Board ofEducation has entered into various leases as lessee for copiers and system telecommunications. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2007, for governmental funds amounted to $192,908.20. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2008 2009 2010 2011 2012 \n \n$ 184,379.09 75,400.85 62,267.27 30,070.86 2,720.00 \n \nTotal \n \n$ 354,838.07 \n \nNote 10: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes 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 ofGeorgia limits the aggregate amount of short-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 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 \nTax Anticipation Notes $======o=\".o==o $3,000,000.00 $3,000,000.00 $======0-.0==0 \n \n- 19 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 11: LONG-TERM DEBT \n \nCAPITAL LEASES The Dawson County Board of Education entered into an agreement January 9, 2004, with the Georgia School Board Association for the construction and subsequent lease of an addition to the Dawson County High School. Under the terms of the agreement, the School District will make annual payments through January 1, 2014. The Dawson County Board of Education also entered into various lease agreements for buses. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2005A \n \n4.00% - 5.25% \n \nGeneral Government - Series 2005B \n \n5.50% \n \nGeneral Government - Refunding - Series 1997A 3.95% - 5.00% \n \n$ 9,970,000.00 10,000,000.00 6,240,000.00 \n \n$ 26.210.000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \nBalance July 1, 2006 \nAdditions Capital Leases \nDeductions Debt Retired Bond Premiums Amortized \nBalance June 30, 2007 \nPortion of Long-Term Debt Due within One Year \n \nCapital Leases \n \nGovernmental Funds \n \nGeneral \n \nUnamortized \n \nObligation \n \nBond \n \nBonds \n \nPremium \n \nTotal \n \n$ 2,066,715.00 $29,910,000.00 $ 1,114,093.00 $33,090,808.00 \n \n124,596.00 \n \n124,596.00 \n \n298,217.58 3,700,000.00 \n \n3,998,217.58 247,576.23 247,576.23 \n \n$ 1,893,093.42 $ 26.210.000.00 $ 866.5)6.77 $ 28 969.6)0.19 \n \n$ 333,928.88 $ 4,650,000.00 $ 247,576.22 $ 5,231,505.10 \n \nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 20 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 11: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nCagital Leases \n \nPrincigal \n \nInterest \n \n2008 2009 2010 2011 2012 2013 - 2014 \n \n$ 333,928.88 $ 81,435.29 \n \n340,549.05 \n \n74,815.12 \n \n282,072.67 \n \n67,880.81 \n \n187,146.02 \n \n62,853.98 \n \n187,146.02 \n \n62,853.98 \n \n562,250.78 \n \n125,707.96 \n \nTotal Principal and Interest \n \n$ 1,893.093 .42 $ 475,547.14 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \nUnamortized Bond \nPremium \n \n2008 2009 2010 2011 2012 2013 - 2015 \n \n$ 4,650,000.00 $ 1,253,753.75 $ \n \n5,330,000.00 \n \n997,366.25 \n \n6,095,000.00 \n \n705,652.50 \n \n6,590,000.00 \n \n372,952.50 \n \n795,000.00 \n \n176,455.00 \n \n2,750,000.00 \n \n281,250.00 \n \n247,576.22 247,576.22 247,576.22 123,788.11 \n \nTotal Principal and Interest \n \n$ 26,210,000.00 $ 3,787,430.00 $ 866,516.77 \n \nNote 12: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $656,807.14 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 $612,549.08 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $39,827.06 \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 $4,431.00 \n \n- 21 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 13: 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 \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nRobinson Elementary School HVAC Renovation $ 22,618.12 $ 475,047.00 \n \nDawson County Middle School \n \n3,528,131.71 \n \n$ 3!550)49.83 $ 475!047.00 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 14: 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 \nNote 15: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \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 \n- 22 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 15: RETIREMENT PLANS \nFiscal Year \n2007 2006 2005 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 1,766,153.16 $ 1,613,373.00 $ 1,471,310.00 \n \n- 23 - \n \n (This page left intentionally blank) \n \n DAWSON 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 Community Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL(1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 16,493,618.00 $ 16,493,618.00 $ 16,019,851.86 \n \n156,000.00 \n \n156,000.00 \n \n1,003,384.22 \n \n12,139,688.00 \n \n13,128,867.12 \n \n14,056,646.26 \n \n1,625, 116.00 \n \n1,717,710.00 \n \n1,736,593.00 \n \n894,484.00 \n \n894,484.00 \n \n1,052, 120.08 \n \n35,700.00 \n \n35,700.00 \n \n151,354.61 \n \n35,000.00 \n \n35,000.00 \n \n438,530.17 \n \n$ 31,379,606.00 $ 32,461,379.12 $ 34,458,480.20 \n \n$ 20,608,421.00 $ 20,767,544.12 $ 21,075,623.33 \n \n1,165,962.00 1,010,602.00 \n664,244.00 349,631.00 1,921,358.00 316,410.00 2,234,793.00 1,387,740.00 246,633.00 \n20,847.00 1,578,498.00 \n225,000.00 \n \n1, 173,606.00 1, 168,975.00 \n664,244.00 350,017.00 1,948, 158.00 320,171.00 2,274,813.00 1,508,975.00 253,481.00 \n7,597.00 \n124,747.00 1,578,498.00 \n225,000.00 \n \n1,202,543.28 1,110,675.66 \n664,165.32 359,223.97 1,913,792.26 300,866.51 2,188,493.76 1,443,642.38 250,022.01 \n4,215.83 470,258.55 110,701.59 1,589,728.60 185,009.53 166,869.40 \n \n$ 31,730,139.00 $ 32,365,826.12 $ 33,035,831.98 \n \n$ \n \n-350,533.00 $ \n \n95,553.00 $ 1,422,648.22 \n \n$ \n \n507,195.00 $ \n \n$ \n \n-350,000.00 \n \n-463,303.00 \n \n185,959.51 \n \n$ \n \n-350,000.00 $ \n \n43,892.00 $ \n \n185,959.51 \n \n$ \n \n-700,533.00 $ \n \n139,445.00 $ 1,608,607.73 \n \n2,333,884.94 \n \n2,333,884.94 \n \n1,797,867.17 \n \nFund Balances - Ending \n \n$ 1,633,351.94 $ 2,473,329.94 $ 3,406,474.90 \n \nNotes to the Schedule of Revenues, Ex11enditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 25- \n \n DAWSON 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 \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 Act Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n 10.553  10.555 \n \nN/A \n \n(2) \n \nN/A $ _~1,~43-2-,3_4=2~.o~o \n \n$ 1,432,342.00 \n \n10.550 \n \nNIA \n \n54 373.71 \n \n84.027 84.173 \n \nNIA $ N/A \n$ \n \n489,304.00 11183.77 \n500,487.77 \n \n84.365 84.318 84.938 84.367 84.298 84.010 84.048 \n \nN/A \n \n161.33 \n \nN/A \n \n86.78 \n \nN/A \n \n(3) \n \nNIA \n \n109,645.83 \n \nN/A \n \n4,350.00 \n \nN/A \n \n475,282.88 \n \nN/A \n \n28,945.36 \n \n$ 1,118,959.95 \n \nTotal Federal Financial Assistance \n \n$ 2,605,675.66 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($111,676.14) 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 $7,846.00, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dawson 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- 26- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities 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 State Bonds Sparsity Nursing Services Principal Supplements Vocational Supervisors Food Services Vocational Education Amended Formula Adjustment Other State Programs Graduation Coaches Health Insurance K-3 Statewide Reading Program National Teacher Certification Preschool Handicapped Program Teachers' Retirement Virtual Schools State Grant \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nHuman Resources, Georgia Department of Family Connection \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n-27- \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n78,826.74 \n \n$ \n \n78,826.74 \n \n802,876.00 219,227.00 1,903,726.00 237,357.00 960,057.00 101,173.00 1,629,003.00 1,334,459.00 440,477.00 2,167,129.00 263,264.00 117,164.00 126,520.00 \n64,010.00 282,222.00 \n86,299.00 55,838.00 \n403,696.00 571,301.00 722,235.00 \n409,033.00 46,922.00 \n100,000.00 20,000.00 \n114,220.00 11,704.00 9,429.00 81,324.00 94,134.00 \n-321,946.00 \n40,075.00 612,549.08 \n43,982.38 24,724.00 80,323.00 39,827.06 \n150.00 \n \n802,876.00 219,227.00 1,903,726.00 237,357.00 960,057.00 101,173.00 1,629,003.00 1,334,459.00 440,477.00 2,167,129.00 263,264.00 117,164.00 126,520.00 \n64,010.00 282,222.00 \n86,299.00 55,838.00 \n403,696.00 571,301.00 722,235.00 \n409,033.00 46,922.00 \n100,000.00 20,000.00 \n114,220.00 11,704.00 9,429.00 81,324.00 94,134.00 \n-321,946.00 \n40,075.00 612,549.08 \n43,982.38 24,724.00 80,323.00 39,827.06 \n150.00 \n \n$ 185,236.80 \n78,905.00 4431.00 \n \n185,236.80 78,905.00 4431.00 \n \n$ 14,056,646.26 $ 185,236.80 $ 14,241,883.06 \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe acquisition, construction and equipping of two elementary schools, one new middle school and necessary furnishings and equipment, including the acquisition of all necessary property. \nThe acquiring, constructing and equipping one new middle school; acquiring, constructing and equipping one new elementary school; adding to, renovating, repairing, improving and equipping existing school buildings; acquiring miscellaneous new equipment, school buses and other vehicles; acquiring land for new or existing schools; adding to, renovating, repairing, acquiring, improving and equipping school system buildings and facilities. \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$ 20,535,000.00 $ 20,535,000.00 $ 827,710.12 $ 17,752,852.00 Ongoing \n \n29,019,000.00 \n \n29,019,000.00 \n \n9,283,900.93 \n \n763,556.00 Ongoing \n \n$ 49,554,000.00$ 49,554,000.00$ 10,111,611.05$ 18,516,408.00 \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 \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dawson County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advanced funding for the above projects as follows: \n \nPrior Years \n \n$ 1,845,180.42 \n \nCurrent Year \n \n1,128,725.00 \n \nTotal \n \n$ 2,973,905.42 \n \nSee notes to the basic financial statements. \n \n-28- \n \n DAWSON 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 II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,098,376.00 $ 1,612,997.74 $ 47,366.76 $ 1,660,364.50 \n \n311,493.00 \n \n676.74 \n \n676.74 \n \n2,637,687.00 \n \n3,656,911.51 \n \n88,161.12 \n \n3,745,072.63 \n \n324,288.00 \n \n122,998.42 \n \n122,998.42 \n \n1,326,620.00 \n \n1,879,676.49 \n \n47,160.50 \n \n1,926,836.99 \n \n138,609.00 2,282,004.00 1,854,457.00 \n603,077.00 2,999,550.00 \n354,199.00 157,261.00 176,077.00 \n85 315.00 \n \n125,653.74 2,539,371.19 2,958,391.98 \n649,581.10 \n162,003.52 2,143,141.44 \n333,391.68 330,201.45 296,967.14 \n48,624.60 246,802.85 \n41 300.16 \n \n129,160.75 119,342.46 132,024.48 \n22,967.14 747.45 \n2,535.41 1,569.68 \n601.90 6,140.90 \n97.10 \n \n125,653.74 2,668,531.94 3,077,734.44 \n781,605.58 \n162,003.52 2,166,108.58 \n334,139.13 332,736.86 298,536.82 \n49,226.50 252,943.75 \n41,397.26 \n \n$ \n \n14,349,013.00 $ 17,148,691.75 $ 597,875.65 $ 17,746,567.40 \n \n391,758.00 78494.00 \n \n529,543.11 \n \n119,844.46 \n \n649,387.57 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n14,819,265.00 $ 17,678,234.86 $ 717,720.11 $ 18,395,954.97 \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-29- \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 10, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson 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 Dawson County Board of Education as of and for the year ended June 30, 2007, which collectively comprise Dawson County Board of Education's basic financial statements and have issued our report thereon dated March 10, 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 Dawson County Board ofEducation's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Dawson County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dawson County Board of Education's internal control over financial reporting. \nA control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Dawson County Board ofEducation's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted \n2007YB-10 \n \n accounting principles such that there is more than a remote likelihood that a misstatement of the Dawson County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Dawson County Board of Education's internal control. \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 Dawson 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 or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dawson 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 of Dawson County Board of Education in a separate letter dated March 10, 2008. \nThis report is intended solely for the information and use of the management, members of the Dawson 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~::i,~~~to~~~ State Auditor \nRWH:as 2007YB-10 \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 10, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson 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 of Dawson County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. Dawson 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 Dawson County Board of Education's management. Our responsibility is to express an opinion on Dawson 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 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 Dawson County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2007SA-10 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dawson County Board of Education's compliance with those requirements. \nIn our opinion, the Dawson 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 Dawson 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 Dawson 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 of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe Dawson County Board ofEducation'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 ofa Federal program will not be prevented or detected by the entity's internal control. \nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \n2007SA-10 \n \n This report is intended solely for the information and use of the management, members of the Dawson 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 2007SA-10 \n \n~Lu.~ \nRussell W. Hinton, CPA, CGFM State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DAWSON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-6421-06-01 Previously Reported Corrective Action Implemented \n \nFS-6421-06-02 Further Action Not Warranted \n \n(1) \n \nAUDITOR'S COMMENTS \n \n(1) Findings/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter in subsequent periods. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dawson 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 Dawson County Board ofEducation did not disclose any significant deficiencies related to the financial statements. \n3. Noncompliance Material to the Financial Statements The audit of the Dawson County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Dawson County Board ofEducation did not disclose any significant deficiencies in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dawson County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .5 I0(a) of 0MB Circular A-133 The Dawson County Board of Education's audit did not disclose audit findings required to be reported by section .5 I0(a) of 0MB 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 \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The Dawson County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n- 1- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2005-h2006","title":"Dawson County Board of Education, Dawsonville, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DAWSON COUNTY BOARD OF EDUCATION \nDAWSONVILLE, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n11 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n12 \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 \n29 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n3 SCHEDULE OF STATE REVENUE \n \n31 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n32 \n \n DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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 \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 4, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dawson County Board of Education, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Dawson 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 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 ofthe Dawson County Board ofEducation, as ofJune 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2004ARL-11 \n \n The Dawson County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated March 4, 2005, on our consideration of the Dawson County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 29 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dawson 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. \nRespectfully submitted, \n \nRWH:as 2004ARL-11 \n \nState Auditor \n \n DAWSON COUNTY BOARD OF EDUCATION \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2004 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n10,215,633 \n \n14,000 \n \n1,041,854 1,369,753 \n252,677 74,149 25,648 25,575 \n \n1,949,915 2,562,401 1,279,930 34,519,156 3,152,917 -6,635,189 \n \n$ ===4=9=8=4=8=4=19= \n \n$ \n \n658,420 \n \n2,291,331 \n \n1,065,792 \n \n309,291 \n \n2,049,947 12,272,942 \n \n$ \n \n18 647 723 \n \n$ \n \n22,506,241 \n \n189,150 3,408,534 3,341,716 1,755,055 \n \n$ \n \n31,200,696 \n \n$ ===4=9=,8=4=8=41=9= \n \n DAWSON 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 Community Services 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 Intangible Recording Tax Real Estate Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n18,255,750 \n \n828,031 965,027 672,583 345,980 1,651,935 226,275 1,958,151 1,923,574 262,297 \n4,268 \n \n482,754 $ 8,910 \n1,606,259 640 432 \n \n144,273 187,819 707,134 \n \n$ \n \n29,832,226 $ \n \n1,039,226 \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 \n9,049,660 \n \n313,284 273,370 222,110 \n87,158 425,327 \n53,263 661,959 376,983 $ \n84,971 4,268 \n \n3,640 599,762 \n \n$ \n \n12,155.]55 $ \n \n$ 82,239 82,239 $ \n \n-9,206,090 \n-514,747 -691,657 -450,473 -258,822 -1,226,608 -173,012 -1,296, 192 -1,464,352 -177,326 \n0 \n-338,481 182,549 -299,363 -640432 \n-16,555,006 \n \n$ \n \n10,876,388 \n \n340,144 \n \n3,845,615 605,633 168,483 201,135 504 330 \n \n$ \n \n16,541,728 \n \n$ \n \n-13,278 \n \n31 213 974 \n \n$ =====31=\",2=0=0=,6=96= \n \n-5- \n \n DAWSON COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2004 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Due From Other Funds Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n2,790,603 $ \n \n5,412,726 $ \n \n2,012,304 $ \n \n14,000 \n \n122,552 1,369,753 \n252,677 74,149 25,648 \n25,575 \n \n690,273 \n \n4,029 \n \n1,386,200 \n \n10,215,633 14,000 \n816,854 1,369,753 \n252,677 74,149 25,648 \n1,386,200 25,575 \n \nTotal Assets \n \n$ \n \n4 674 957 $ \n \n6,102,999 $ \n \n3,402,533 $ ===1~4;;,,1;,,;8~0,,,;,48;;,;9;,. \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Due To Other Funds \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund \nTotal Fund Balances \n \n$ \n \n658,420 \n \n$ \n \n2,291,331 \n \n$ \n \n1,065,792 \n \n309,291 \n \n1,386,200 \n \n$ \n \n2 949,751 $ \n \n2,761,283 \n \n$ \n \n$ \n \n163,575 \n \n$ \n \n$ \n \n3,402,533 \n \n25,575 \n \n$ \n \n3,341,716 \n \n1 536,056 \n \n$ \n \n1,725,206 $ \n \n3,341,716 $ \n \n3,402,533 $ \n \n658,420 2,291,331 1,065,792 \n309,291 1,386,200 \n5,711,034 \n163,575 3,402,533 \n25,575 3,341,716 \n1,536 056 \n8,469,455 \n \nTotal Liabilities and Fund Balances \n \n$ \n \n4 674 957 $ \n \n6,102,999 $ \n \n3 402 533 $==~14;;,,1;,,;8~0~48;;,;9;,. \n \nThe notes to the basic financial statements are an integral part of this statement. \n-6- \n \n DAWSON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30. 2004 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \n \n$ \n \n8,469,455 \n \n$ \n \n1,949,915 \n \n2,562,401 \n \n1,279,930 \n \n34,519,156 \n \n3,152,917 \n \n-6,635,189 \n \n36,829,130 \n \n225,000 \n \n$ -11,895,000 -2,427,889 \n \n-14,322,889 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 31,200,696 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases 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$ 10,869,098 \n \n$ \n \n754.330 $ 3,845,615 \n \n10,644,921 \n \n1,593,073 \n \n1,039,226 \n \n27,833 \n \n163,502 \n \n504,329 \n \n$ 25,432,810 $ 4,009,117 $ \n \n341,258 $ 19,786 \n9,800 \n \n11,210,356 4,619,731 \n10,644,921 1,593,073 1,039,226 201,135 504,329 \n \n370,844 $ 29,812,771 \n \n$ 16,409,968 \n \n$ 16,409,968 \n \n828,031 965,027 580,841 331,317 1,583,664 222,621 1,684,383 1,312,069 262,297 \n4,268 482,754 \n8,174 1,362,460 \n175,974 $ \n \n$ 5,705,078 \n \n3,654 \n \n828,031 965,027 580,841 331,317 1,583,664 226,275 1,684,383 1,312,069 262,297 \n4,268 482,754 \n8,174 1,362,460 5,881,052 \n \n41,128 5 831 \n \n1,620,000 634,601 \n \n1,661,128 640,432 \n \n$ 26,260,807 $ 5,705,078 $ 2,258,255 $ 34,224,140 \n \n$ \n \n-827,997 $ -1,695,961 $ -1,887 411 $ -4 411 369 \n \n$ \n \n296,003 $ 2,000,000 \n \n$ \n \n2,296,003 \n \n$ 3,241,488 \n \n3,241,488 \n \n-3,241,488 \n \n-3,241,488 \n \n$ \n \n296,003 $ -1,241 ,488 $ 3,241,488 $ \n \n2,296,003 \n \n$ \n \n-531,994 $ -2,937,449 $ 1,354,077 $ -2, 115,366 \n \n2,257,200 \n \n6,279,165 \n \n2,048,456 \n \n10,584,821 \n \nFund Balances - Ending \n \n$ 1,725,206 $ 3,341,716 $ \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n-8- \n \n3,402,533 $=====8=,4=6=9,=45=5= \n \n DAWSON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \n \nCapital Outlay \n \n$ \n \nDepreciation Expense \n \nExcess of Capital Outlay over Depreciation Expense \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 \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \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 \n$ \n \nCapital Lease Payments \n \nTotal Long-Term Debt Repayments \n \n$ -2,115,366 \n \n3,500,057 -769 270 \n \n2,730,787 6,176 \n \n-2,296,003 \n \n1,620,000 41 128 \n \n1,661,128 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ =====-1=3=2=78= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2004 \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Contracts Payable Retainages Payable Funds Held for Others \nTotal Liabilities \n \nEXHIBIT\"G\" \n \nAGENCY FUNDS \n$ 1,389,121 2,000 \n$ 1,391,121 \n \n$ \n \n310,113 \n \n105,303 \n \n975,705 \n \n$ 1,391,121 \n \nThe notes to the basic financial statements are an integral part of this statement. - 11 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dawson County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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 Dawson County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofintemal 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- 12 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n 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 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 type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \n- 13 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District 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 ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n \n- 14 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(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 Dawson County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on September 10, 2003 (levy date). Taxes were due on December 20, 2003 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Dawson County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.75% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $10,869,098 and for school bonds amounted to $341,258. \n \nTax millage rates levied for the 2003 tax year (calendar year) for the Dawson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.646 mills .400 mills \n \n14.046 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,845,615 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- 15 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \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 \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2004, are recorded as prepaid items. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ \n \n10,000 \n \n20 years \n \n$ \n \n10,000 20 to 80 years \n \n$ \n \n10,000 8 to 15 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 16 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \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 ofNet Assets. \nFUND BALANCES RESERVED \nReserves represent those portions of fund balance equity that are legally segregated for a specific future use. \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 ofthe State of Georgia, \n \n- 17 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $12,291,859. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 1,042,204 \n \n2 \n \n6,685,748 \n \n3 \n \n4,563,907 \n \nTotal \n \n$ 12,291,859 \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 18 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2003 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2004 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 1,469,465 $ 480,450 \n \n249,379 \n \n2,562,401 $ \n \n$ 1,949,915 \n \n249 379 \n \n2,562,401 \n \nTotal Capital Assets Not Being Depreciated $ 1,718,844 $ 3,042,851 $ 249,379 $ 4,512,316 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 34,181,221 $ 2,784,267 1,279,930 \n \n337,935 $ 368,650 \n \n0 $ 34,519,156 3,152,917 1,279,930 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n3,723,908 1,649,066 \n492,945 \n \n437,013 243,922 \n88,335 \n \n4,160,921 1,892,988 \n581,280 \n \nTotal Capital Assets, Being Depreciated, Net $ 32,379,499 $ \n \n-62,685 $ \n \n0 $ 32,316,814 \n \nGovernmental Activity Capital Assets - Net $ 34,098.343 $ 2,980.166 $ 249.379 $ 36,829.130 \n \nCapital assets being acquired under capital leases as of June 30, 2004, are as follows: \n \nGovernmental Funds \n \nConstruction in Progress Equipment Less: Accumulated Depreciation \n \n$ 736,506 514,199 71 539 \n \n$ 1,179,166 \n \nCurrent year depreciation expense by function is as follows: \n \n- 19 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 5: CAPITAL ASSETS \nInstruction Support Services \nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Community Services Food Services \n \n$ 400,812 \n \n$ \n \n19,922 \n \n3,184 \n \n14,825 \n \n64,585 \n \n212,841 \n \n160 \n \n315,517 52,941 \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 reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2004, were as follows: \n \nDistrict-wide Capital Projects SPLOST \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \n \n$ 2,012,304 $ 4,551,701 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2004, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nDistrict-wide Capital Projects Debt Service Funds \n \n$ 1,386,200 $ 1,386,200 \n \n$ 1!386!200 $ 1!386!200 \n \n- 20 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nTransfers are used to move sales tax revenues to provide temporary funding for debt service payments. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2004, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide \nCapital Projects \n \nDebt Service Funds \n \n$ 3,241,488 \n \nTransfers are used to move SPLOST revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund to pay current year bond principal and interest as required in the bond resolution. \n \nNote 9: 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. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with 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- 21 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 9: RISK MANAGEMENT \n \n2003 2004 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n$ \n \n0 $ \n \n0 $ \n \n0 $ \n \n0 \n \n$ \n \n0 $ \n \n660 $ \n \n660 $ \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 $1,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 150,000 \n \n$ \n \n10,000 \n \nNote 10: OPERATING LEASES \n \nDawson County Board ofEducation has entered into various leases as lessee for copiers and system telecommunications. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2004, for governmental funds amounted to $37,966. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2005 2006 2007 2008 2009 \n \n$ \n \n57,646 \n \n48,674 \n \n36,180 \n \n33,097 \n \n21,202 \n \nTotal \n \n$==1-96-,7=9==9 \n \n- 22- \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 11: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTemporary Loans \n \n$=======0 $ 1,500,000 $ 1,500.000 $===0 \n \nNote 12: LONG-TERM DEBT \n \nCAPITAL LEASES The Dawson County Board of Education entered into an agreement January 9, 2004, with the Georgia School Board Association for the construction and subsequent lease of an addition to the Dawson County High School. Under the terms of the agreement, the School District will make annual payments through January 1, 2014. The Dawson County Board of Education also entered into various lease agreements for buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2000 \n \n5.125% - 5.5% \n \nGeneral Government - Refunding - Series 1997A 3.95% - 5.0% \n \n$ 4,080,000 7,815,000 \n \n$ 11,895.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \n \n- 23 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 12: LONG-TERM DEBT \n \nGovernmental Funds \n \nGeneral \n \nCapital \n \nObligation \n \nLeases \n \nBonds \n \nTotal \n \nBalance July 1, 2003 \n \n$ 173,014 $ 13,515,000 $ 13,688,014 \n \nAdditions Capital Leases \n \n2,296,003 \n \n2,296,003 \n \nDeductions Debt Retired Payments \n \n41,128 \n \n1,620,000 \n \n1,620,000 41,128 \n \nBalance June 30, 2004 \n \n$ 2,427,889 $ 11,895,000 $ 14,322,889 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 284,947 $ 1,765,000 $ 2,049,947 \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 \nCaQital Leases \n \nPrinciQal \n \nInterest \n \n2005 2006 2007 2008 2009 2010 - 2014 \n \n$ 284,947 $ 288,271 291,707 248,302 250,394 \n1,064,268 \n \n77,422 74,098 70,662 67,108 65,017 314,270 \n \nTotal Principal and Interest \n \n$ 2,427,889 $ 668,577 \n \n- 24 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 12: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2005 2006 2007 2008 2009 2010 - 2014 2015 - 2019 \n \n$ 1,765,000 $ 1,885,000 2,005,000 605,000 645,000 4,010,000 980,000 \n \n550,938 460,298 364,335 302,010 274,785 866,035 \n49,000 \n \nTotal Principal and Interest \n \n$ 11!895!000 $ 2!867!401 \n \nNote 13: PRIOR YEAR DEFEASEMENT OF DEBT \n \nIn fiscal year 1998, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. At June 30, 2004, $7,305,000 ofbonds are outstanding and are considered defeased. \n \nNote 14: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $258,168 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 ofNon-Certified Personnel In the amount of $255,757 \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 $2,411 \n \n- 25 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 15: RELATED PARTY TRANSACTION \n \nThe Dawson County Board of Education entered into a contract during fiscal year 2004 for the delivery ofafter school care service with Blacks Mill Group II, LLC. The owner and operator ofthe company is the son of a Dawson County Board ofEducation member. The contract is for the 20032004 school year. The schedule of fees is primarily $30 per child per week with $1 per child to be returned to the schools at the end ofeach month. There are other fees for school system employees and parents with multiple children in the program. \n \nNote 16: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2004, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n04G-642-007 Dawson County High School Addition \n \n$ 6,493,056 $ 1,852,368 586,312 \n \n$ 720792368 $ 128522368 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 17: 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 18: 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- 26 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 18: 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 9.24% 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$ 1,378,956 $ 1,283,076 $ 1,097,505 \n \n-27 - \n \n DAWSON COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1} \n \nFINAL (1} \n \nACTUAL AMOUNTS \n \n$ \n \n11,614,450 $ \n \n11,614,450 $ \n \n10,869,098 \n \n95,000 \n \n95,000 \n \n754,330 \n \n10,595,428 \n \n10,505,085 \n \n10,644,921 \n \n1,365,120 \n \n1,481,737 \n \n1,593,073 \n \n791,107 \n \n791,107 \n \n1,039,226 \n \n25,700 \n \n25,700 \n \n27,833 \n \n10 000 \n \n14,161 \n \n504 329 \n \n$ \n \n24,496,805 $ \n \n24,527,240 $ \n \n25,432,810 \n \n$ \n \n15,973,323 $ \n \n16,240,318 $ \n \n16,409,968 \n \n744,448 882,789 584,402 279,489 1,627,596 241,869 1,704,196 1,002,230 243,437 \n4,643 1,342,899 \n176,000 \n \n857,483 970,863 584,402 312,264 1,655,757 231,869 1,708,357 995,499 252,424 \n6,000 \n20,180 1,342,899 \n176,000 \n \n828,031 965,027 580,841 331,317 1,583,664 222,621 1,684,383 1,312,069 262,297 \n4,268 482,754 \n8,174 1,362,460 \n175,974 46,959 \n \n$ \n \n24,807,321 $ \n \n25,354,315 $ \n \n26,260,807 \n \n$ \n \n-310,516 $ \n \n-827,075 $ \n \n-827 997 \n \n$ \n \n70,000 $ \n \n-270 000 \n \n70,000 $ -70 000 \n \n296,003 \n \n$ \n \n-200 000 $ \n \n0 $ \n \n296,003 \n \n$ \n \n-510,516 $ \n \n-827,075 $ \n \n-531,994 \n \n3,001,970 \n \n3,001,970 \n \n2,257,200 \n \n-48 235 \n \n-48 235 \n \nFund Balances - Ending \n \n$ \n \n2,443,219 $ \n \n2,126,660 $ \n \n1,725,206 \n \nNotes to the Schedule of Revenues, Ex12enditures and Changes in Fund Balances Budget and Actual (1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \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. See notes to the basic financial statements. \n- 29 - \n \n DAWSON 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) \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States 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 State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U.S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n. 10.553 . 10.555 \n \nN/A N/A $ \n$ \n \n(2) 1,155,328 \n1,155,328 \n \n10.550 \n \nN/A \n$ \n \n85,260 1,240,588 \n \n84.027 84.173 \n \nN/A $ N/A \n$ \n \n417,796 20,388 \n438,184 \n \n84.318 84.367 84.298 84.010 84.048 \n \nN/A N/A \nN/A N/A N/A \n$ \n \n11,757 115,067 \n15,762 470,169 \n24 739 \n1 075,678 \n \nTotal Federal Financial Assistance NIA = Not Available \n \n$ ===='2'=31=6=,2=6=6 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amounts 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 ($89,248) were not maintained separately and are included in the 2004 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 Dawson 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- 30- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \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 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 Principal Supplements Vocational Supervisors Food Services Vocational Education Austerity Reduction Other State Programs At-Risk Summer School Program Health Insurance Limited School Choice Program Mentor Teachers National Teacher Certification Preschool Handicapped Program Lottery Programs Educational Technology Centers Technology Installation \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n- 31 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n566,608 \n \n220,741 \n \n1,325,853 \n \n356,511 \n \n622,005 \n \n339,573 \n \n1,298,175 \n \n1,046,192 \n \n344,510 \n \n216,691 62,715 \n803,967 378,701 481,525 140,121 \n1,555 96,740 38,859 216,247 65,666 48,253 \n \n349,466 484,071 652,914 \n \n362,688 82,239 19,500 72,979 11,952 9,008 82,122 47,254 \n-638,173 \n18,329 255,757 \n41,247 14,460 25,752 52,247 \n19,718 7,772 \n \n2 411 \n \n$ ===1=0,.,,,6=4==4,=9=21= \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"4\" \n \nPROJECT \nPayment of principal and interest due on the 1997A Bonds coming due October 1, 2002 through and including April 1, 2006. \nThe acquisition, construction and equipping of two elementary schools, one new middle school and necessary furnishings and equipment, including the acquisition of all necessary property. \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$ 1,265,000 $ 1,265,000 $ \n \n440,875 $ \n \n824,125 Completed \n \n20,535,000 \n \n20,535,000 \n \n2,329,995 \n \n7,166,506 Ongoing \n \n$ 21,800,000 $ 21,800,000 $ \n \n2,770,870 $ ====='7,=99=0=,6=3=1 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dawson County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District had incurred interest expense to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 1,597,173 \n \nCurrent Year \n \n243,113 \n \nTotal \n \n$ 1,840,286 \n \nSee notes to the basic financial statements. \n \n- 32- \n \n DAWSON COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2004 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category 111 Category IV Category V 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 \n784,004 $ 1,082,870 $ \n \n59,686 $ \n \n1,142,556 \n \n314,380 \n \n155,868 \n \n155,868 \n \n1,857,344 \n \n2,627,226 \n \n119,728 \n \n2,746,954 \n \n494,566 \n \n308,779 \n \n308,779 \n \n914,787 \n \n1,407,870 \n \n60,696 \n \n1,468,566 \n \n401,567 1,819,926 1,445,333 \n471,906 2,621,665 \n187,237 10,648 \n134,620 52 530 \n \n296,600 2,042,745 2,244,724 \n497,252 \n216,602 1,495,205 \n216,518 191,896 184,922 \n1,087 180,173 \n16,532 \n \n114,496 107,708 \n76,032 \n31,377 650 30 680 406 \n6,639 4,154 \n \n296,600 2,157,241 2,352,432 \n573,284 \n216,602 1,526,582 \n217,168 191,926 185,602 \n1,493 186,812 \n20,686 \n \n$ \n \n11,510,513 $ 13,166,869 $ \n \n582,282 $ \n \n13,749,151 \n \n299,063 66 290 \n \n450,687 23 548 \n \n123,266 42,742 \n \n573,953 66,290 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n11,875,866 $ 13,641,104 $ \n \n748,290 $ =~1.,;,4.;;;,3,;;;;89;;,e,3~9~4 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 4, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson 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 ofDawson County Board ofEducation as of and for the year ended June 30, 2004, which collectively comprise Dawson County Board of Education's basic financial statements and have issued our report thereon dated March 4, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dawson County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dawson 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-6421-04-01. \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 Dawson 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 Dawson County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH: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 4, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dawson County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2004. Dawson County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs_ Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Dawson County Board of Education's management. Our responsibility is to express an opinion on Dawson 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 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 Dawson 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 Dawson County Board of Education's compliance with those requirements. \n2004SA-10 \n \n In our opinion, the Dawson 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 Dawson 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 Dawson 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 of the management, members of the Dawson 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 2004SA-10 \n \nState Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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-6421-03-01 FS-6421-03-02 \n \nUnresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUE/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-6421-03-01 \n \nThe Finance Department and the school bookkeepers are in the process of finalizing a Student Activity Funds Handbook. This handbook outlines proper policies and procedures for the accounts. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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 Dawson County Board ofEducation'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 Dawson County Board ofEducation 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 of the Dawson County Board of Education disclosed no instances of noncompliance 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 Dawson 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 Dawson 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 .510(a) of 0MB Circular A-133 The Dawson County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n \n9. Low Risk Auditee The Dawson 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 DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6421-04-01 \nOur examination of the principal's accounts disclosed weaknesses in internal control as discussed below: \nCash and Cash Equivalents  The bank reconciliation function is not separated from the record keeping and voucher payment functions. \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  One bank reconciliation was not performed.  Of the fifty (50) receipts tested, fifty (50) did not contain adequate documentation. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Based on a sample of forty vouchers, fifteen were not approved by the principal.  The remaining twenty-five vouchers were approved by the principal after the expense was incurred.  Ten vouchers were not approved by the person making the request.  Eight vouchers did not include receiving documentation.  Eleven payments included sales tax.  Forty expenditures did not have a purchase order.  Five voucher packages did not include an invoice. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal accounts sites, for the accounting functions and their failure to ensure established controls were functioning as designed. Management should implement additional procedures to ensure that the key accounting functions of custody, record keeping, and authorization are segregated. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n-2- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 \nFinding Control Number: FS-6421-04-01 \nWe concur with this finding. The Finance Department and school bookkeepers are jointly in the process of modifying our handbook to further outline proper policies and procedures for the principal's accounts. Proper internal control procedures are an integral part of this handbook. Management will periodically perform reviews to help ensure that schools are adhering to these procedures. The handbook will be finalized by June, 2005, and changes implemented in fiscal year 2006. \nContact Person: Jamie Ulrich, System Business Manager Telephone: (706) 265-3246 extension 1006 Fax: (706) 265-8769 e-mail: julrich(al,dawson.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2002-h2003","title":"Dawson County Board of Education, Dawsonville, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2003-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Report year covers fiscal year.","Has supplements: Dawson County Board of Education, Dawsonville, 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 ... (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 9, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dawson County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dawson County--Auditing--Periodicals","Education--Georgia--Dawson County--Finance--Statistics--Periodicals"],"dcterms_title":["Dawson County Board of Education, Dawsonville, 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-bd26-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2002-h2003"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DAWSON COUNTY BOARD OF EDUCATION DAWSONVILLE, 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 DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n11 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n12 \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 \n29 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n3 SCHEDULE OF STATE REVENUE \n \n32 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n33 \n \n DAWSON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n35 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nJune 22, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dawson County Board of Education, as of and for the year ended June 30, 2003, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Dawson 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 position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Dawson 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 The Dawson County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nAs discussed in Note 2 to the basic financial statements, during fiscal year 2003, the Board completed a comprehensive inventory of its capital assets for inclusion in the basic financial statements, consolidated its individual school activity accounts for inclusion in the basic financial statements and changed its method of accounting for the salaries of certain ten-month employees from a cash basis to a basis that is generally accepted. These changes are in accordance with generally accepted accounting principles. \nAs described in Note 2, the Dawson 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 June 22, 2004, on our consideration of the Dawson County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 29, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dawson County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \n2003-34ARL-11 \n \n A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24. \nRespectfully submitted, \nw4~ \n \nRWH:gp 2003-34ARL-11 \n \nState Auditor \n \n DAWSON COUNTY BOARD OF EDUCATION \n \n DAWSON 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 Prepaid Items 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 \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n10,731,987 \n \n14,000 \n \n954,364 1,468,526 \n259,377 17,801 72,606 24,988 \n \n1,469,465 249,379 \n1,279,930 34,181,221 \n2,784,267 -5,865,919 \n \n$ ===4=7,..6=4=1=9=92= \n \n$ \n \n606,072 \n \n2,133,932 \n \n1,661,128 12,026,886 \n \n$ \n \n16,428,018 \n \n$ \n \n21,245,940 \n \n123,363 2,055,571 5,443,554 2,345,546 \n \n$ \n \n31 213 974 \n \n$ ===4=7:!:6=4~1.;;;,9,;;;92~ \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2003 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Real Estate Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n16,183,957 \n \n830,192 939,143 667,438 353,468 1,562,184 228,701 1,802,148 1,181,678 281,771 \n1,568 \n \n411,859 $ 28,807 \n1,370,923 839 491 \n \n$ \n \n26,683,328 $ \n \n224,320 689,347 \n913 667 \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 \n9,929,883 $ \n \n235,916 202,516 235,577 \n63,127 440,564 \n43,859 691,381 378,603 131,426 \n \n547,288 \n \n$ \n \n12,900,140 $ \n \n133,313 $ \n7,126 1,139 5,303 22,208 154,582 \n237 18,937 \n342 845 $ \n \n-6,120,761 \n-594,276 -736,627 -424,735 -289,202 -1,116,317 -184,842 -1,088,559 -648,493 -150,345 \n-1,568 \n-187,539 -28,570 \n-115,351 -839,491 \n-12,526,676 \n \n$ \n \n10,516,742 \n \n347,025 \n \n3,505,182 94,868 \n331,872 657,638 \n \n$ \n \n15,453,327 \n \n$ \n \n2,926,651 \n \n28,287,323 \n \n$ ===3=1=,2=1=3,=9=74= \n \n-5- \n \n DAWSON 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 Prepaid Items Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,024,010 $ 5,665,159 $ 2,042,818 $ 10,731,987 \n \n14,000 \n \n14,000 \n \n115,896 1,468,526 \n259,377 17,801 72,606 24,988 \n \n614,006 \n \n5,638 \n \n735,540 1,468,526 \n259,377 17,801 72,606 24,988 \n \n$ 4,997,204 $ 6,279,165 $ 2,048,456 $ 13,324,825 \n \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 \nTotal Fund Balances \n \n$ 606,072 \n2,133,932 \n$ 2,740,004 \n \n$ 606,072 \n2,133,932 \n$ 2,740,004 \n \n$ 98,375 \n \n$ \n \n98,375 \n \n$ 2,048,456 \n \n2,048,456 \n \n24,988 \n \n24,988 \n \n$ 6,279,165 \n \n6,279,165 \n \n2,133,837 \n \n2,133,837 \n \n$ 2,257,200 $ 6,279,165 $ 2,048,456 $ 10,584,821 \n \nTotal Liabilities and Fund Balances \n \n$ 4,997,204 $ 6,279,165 $ 2,048,456 $ 13,324,825 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DAWSON 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\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \n \n$ 10,584,821 \n \n$ \n \n1,469,465 \n \n249,379 \n \n1,279,930 \n \n34,181,221 \n \n2,784,267 \n \n-5,865,919 \n \n34,098,343 \n \n218,824 \n \n$ -13,515,000 -173 014 \n \n-13 688 014 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 31213974 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DAWSON 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 Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 10,596,961 \n \n$ \n \n94,868 $ 3,505,182 \n \n11,369,600 \n \n254,243 \n \n1,598,468 \n \n913,667 \n \n29,229 \n \n101,468 \n \n678,312 \n \n$ 25,281,105 $ 3,860,893 $ \n \n339,910 $ 10,936,871 \n \n3,600,050 \n \n11,623,843 \n \n1,598,468 \n \n913,667 \n \n201,175 \n \n331,872 \n \n678,312 \n \n541,085 $ 29,683,083 \n \n$ 15,650,605 \n \n$ 15,650,605 \n \n830,193 \n \n939,144 \n \n638,133 \n \n348,784 \n \n1,540,375 \n \n226,997 \n \n$ \n \n1,710,815 \n \n1,127,790 \n \n281,771 \n \n1,568 \n \n411,859 \n \n28,572 \n \n1,293,046 \n \n324,624 $ 1,113,740 \n \n1,704 \n \n830,193 939,144 638,133 348,784 1,540,375 228,701 1,710,815 1,127,790 281,771 \n1,568 411,859 \n28,572 1,293,046 1,438,364 \n \n515,236 48,993 \n \n826,510 46 416 \n \n2,890,000 744 082 \n \n4,231,746 839,491 \n \n$ 25,918,505 $ 1,986,666 $ 3,635,786 $ 31,540,957 \n \n$ -637,400 $ 1,874,227 $ -3,094,701 $ -1,857,874 \n \n$ 218,196 \n \n$ 218,196 \n \n$ 307,693 $ 993,375 \n \n1,301,068 \n \n-307,693 \n \n-993,375 \n \n-1,301,068 \n \n$ \n \n-89 497 $ -685,682 $ 993,375 $ 218,196 \n \n$ -726,897 $ 1,188,545 $ -2,101,326 $ -1,639,678 \n \n2,984,097 \n \n5,090,620 \n \n4,149,782 \n \n12,224,499 \n \nFund Balances - Ending \n \n$ 2,257,200 $ 6,279,165 $ 2,048,456 $ 10,584,821 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n-8- \n \n DAWSON 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. \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ -1,639,678 \n \n$ \n \n1,336,669 \n \n-710 786 \n \n625,883 -73,104 \n \n-218,196 \n \n$ \n \n2,890,000 \n \n1 341 746 \n \n4,231,746 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$==2'=92=6=,6=5=1 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2003 \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT G 11 11 \n \nAGENCY FUNDS \n \n$ \n \n111,628 \n \n2,000 \n \n$==11=3=,6=28= \n \n$==1=13=,6=2=8= \n \nThe notes to the basic financial statements are an integral part of this statement. - 11 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dawson County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \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 Dawson 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- 12 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (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 type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized \n- 13 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nas expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nFor fiscal year 2003, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2003 financial statements to record costs for salaries and fringe benefits earned by employees through June 30, 2003, (even though paid in July and August 2003) and the related revenue due from the State to fund these contracts. Adjustments were also made for the similar salaries, benefits and related State revenues earned in fiscal year 2002 and recorded in fiscal year 2003. \nThe net effect of the above accounting treatment results in the accompanying financial statements reflecting costs for those salaries and benefits earned by employees during fiscal year 2003 and the related State revenue to fund these contracts. In addition, both the net assets and fund balance at July 1, 2002, have been restated for salaries and benefits earned by employees in fiscal year 2002 but not paid until July and August 2002 and for the related State revenue for these contracts. This change is in accordance with generally accepted accounting principles. See Restatement of Prior Year Fund Balance. \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 $94,053 at July 1, 2002. For fiscal year 2003, these funds have been reported as part of the General Fund. In addition, governmental fund activity from the various school activity accounts, which were not reported in the prior year's financial statements, have been reported within the General Fund for fiscal year ended June 30, 2003. The governmental fund activity ofthe various school activity accounts had a fund balance of$166,951 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \n \n- 14 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGeneral Fund Balance July 1, 2002 \n \n$ 3,669,741 \n \nAdd Funds Consolidated with General Fund: School Food Services Fund School Activity Account - Governmental Activity \n \n94,053 166,951 \n \nAdd: State Revenue Related to July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 Change in Inventory Method \n \n1,309,465 20,242 \n \nDeduct: July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \n \n2,276,355 \n \nGeneral Fund Balance July 1, 2002 (Restated) \n \n$ 2,984.097 \n \nCHANGES IN ACCOUNTING PRINCIPLES \n \nThe Dawson County Board of Education has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2003. \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$ 2,984,097 5,090,620 4,149,782 \n \nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds Payable Capital Leases Payable \n \n$ 12,224,499 38,627,593 -5,155,133 291,928 -16,405,000 -1,296,564 \n \nNet Assets Beginning (See Exhibit \"B\") \n \n$ 28,287.323 \n \n- 15 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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 Board to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(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 \n- 16 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \ndisclosed 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 Dawson County Board of Commissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on October 14, 2002 (levy date). Taxes were due on January 20, 2003 (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 Dawson County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.75% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2003, for maintenance and operations amounted to $10,596,961 and for school bonds amounted to $339,910. \n \nTax millage rates levied for the 2002 tax year (calendar year) for the Dawson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n12.746 mills .400 mills \n \n13.146 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,505,182 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 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 \n- 17 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2003, are recorded as prepaid items. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost ofnormal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ \n \n10,000 \n \n20 years \n \n$ \n \n10,000 20 to 80 years \n \n$ \n \n10,000 8 to 15 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 \n- 18 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nFUND BALANCES RESERVED \nReserves represent those portions of fund balance equity that are legally segregated for a specific future use. \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 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 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- 19 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \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, 2003, the bank balances were $11,897,655. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 8,030,859 \n \n2 \n \n0 \n \n3 \n \n3,866,796 \n \nTotal \n \n$ 11,897,655 \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- 20 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \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$ 1,197,288 $ 309 190 \n \n272,177 249 379 $ \n \n$ 1,469,465 \n \n309 190 \n \n249 379 \n \nTotal Capital Assets Not Being Depreciated $ 1,506,478 $ 521,556 $ 309 190 $ 1 718 844 \n \nCapital Assets Being Depreciated Building and Building Improvements Equipment Land Improvements \n \n$ 33,290,014 $ 2,551,171 1,279,930 \n \n891,207 $ 233,096 \n \n0 $ 34,181,221 2,784,267 1,279,930 \n \nLess Accumulated Depreciation for: Building and Building Improvements Equipment Land Improvements \n \n3,291,983 1,434,202 \n428 948 \n \n431,925 214,864 \n63 997 \n \n3,723,908 1,649,066 \n492 945 \n \nTotal Capital Assets, Being Depreciated, Net $ 31,965,982 $ 413 517 $ \n \n0 $ 32,379,499 \n \nGovernmental Activity Capital Assets - Net $ 33,472,460 $ 935 073 $ 309 190 $ 34,098,343 \n \nCapital assets being acquired under capital leases as of June 30, 2003, are as follows: \n \nGovernmental Funds \n \nEquipment Less: Accumulated Depreciation \n \n$ 218,196 18 183 \n \nCurrent year depreciation expense by function is as follows: \n \n$==2==00-,0=1~3 \n \nInstruction Support Services \nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Community Services Food Services \n \n$ 372,703 \n \n$ \n \n19,922 \n \n3,184 \n \n14,825 \n \n62,088 \n \n184,963 \n \n160 \n \n285,142 52 941 \n \n$ 710 786 \n \n- 21 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and 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, 2003, 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$ 4,780,481 $ \n \n$ 2,042,818 884,678 \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$ 307,693 $ 993 375 \n \nTotal \n \n$ 307!693 $ 993 375 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as required match or supplemental funding source for capital construction projects and to move SPLOST collections to the Debt Service Fund to pay current year bond principal and interest as required in the bond resolution. \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 \n \n- 22 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 8: RISK MANAGEMENT \n \ndamage, 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. \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. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \n \nThe School District participates in the Georgia 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 $1,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 150,000 \n \n$ \n \n10,000 \n \nNote 9: OPERATING LEASES \n \nDawson County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2003, for governmental funds amounted to $42,200. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2004 2005 2006 2007 2008 \n \n$ \n \n27,944 \n \n24,238 \n \n15,689 \n \n3,336 \n \n1 390 \n \nTotal \n \n$====72='=,5==9==7 \n \n- 23 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 10: SHORT-TERM DEBT \n \nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTemporary Loans Note 11: LONG-TERM DEBT \n \n$=======0 $ 2,600,000 $ 2,600,000 $=====0 \n \nCAPITAL LEASES The Dawson County Board ofEducation entered into an agreement July 20, 2000, with the Georgia School Board Association for the construction and subsequent lease of an athletic complex. Under the terms ofthe agreement, the School District was to make annual payments through July 1, 2007. During fiscal year 2003, the School District paid offthe lease with unexpended 1997 SPLOST funds. The Dawson County Board of Education also entered into various lease agreements for buses. All but one lease from BB\u0026T for four buses was paid off in fiscal year 2003 with unexpended 1997 SPLOST funds. The remaining lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government- Series 2000 \n \n5.125% - 5.5% \n \nGeneral Government - Refunding - Series 1997A 3.95% - 5.0% \n \n$ 5,250,000 8,265,000 \n \n$ 13,515,000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \n \n- 24 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 11: LONG-TERM DEBT \n \nGovernmental Funds \n \nGeneral \n \nCapital \n \nObligation \n \nLeases \n \nBonds \n \nTotal \n \nBalance July 1, 2002 \n \n$ 1,296,564 $ 16,405,000 $ 17,701,564 \n \nAdditions Capital Leases \n \n218,196 \n \n218,196 \n \nDeductions Debt Retired Payments \n \n1,341,746 \n \n2,890,000 \n \n2,890,000 1,341,746 \n \nBalance June 30, 2003 \n \n$ 173.014 $ 13,515.000 $ 13,688.014 \n \nPortion of Long-Term Debt Due within One Year \n \n$ \n \n41,128 $ 1,620,000 $ 1,661,128 \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 \nCa:nital Leases \n \nPrinci:nal \n \nInterest \n \n2004 2005 2006 2007 \n \n$ \n \n41,128 $ \n \n42,513 \n \n43,946 \n \n45,427 \n \n5,831 4,444 3,012 1,531 \n \nTotal Principal and Interest \n \n$ 173.014 $ \n \n14,818 \n \n- 25 - \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 11: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2004 2005 2006 2007 2008 2009 - 2013 2014 - 2018 \n \n$ 1,620,000 $ 634,600 \n \n1,765,000 \n \n550,937 \n \n1,885,000 \n \n460,298 \n \n2,005,000 \n \n364,335 \n \n605,000 \n \n302,010 \n \n3,740,000 \n \n1,046,070 \n \n1,895,000 \n \n143,750 \n \nTotal Principal and Interest \n \n$ 13,515,000 $ 3,502.000 \n \nNote 12: PRIOR YEAR DEFEASEMENT OF DEBT \n \nIn fiscal year 1998, the School District defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. At June 30, 2003, $8,000,000 of bonds are outstanding and are considered defeased. \n \nNote 13: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and costs in the amount of $288,104 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 $246,238 \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 $41,866 \n \n- 26- \n \n DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 14: RELATED PARTY TRANSACTION \n \nThe Dawson County Board of Education entered into a contract during fiscal year 2003 for the delivery ofafter school care service with Blacks Mill Group II, LLC. The owner and operator ofthe company is the son of a Dawson County Board ofEducation member. The contract is for the 20022003 school year. The schedule of fees is primarily $30 per child per week with $1 per child to be returned to the schools at the end of each month. There are other fees for school system employees and parents with multiple children in the program. \n \nNote 15: 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 16: 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 of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2003 2002 2001 \n \n100% 100% 100% \n \n$ 1,283,076 $ 1,097,505 $ 1,104,735 \n \n- 27 - \n \n DAWSON COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1} \n \nFINAL (1} \n \nACTUAL AMOUNTS \n \n$ \n \n10,117,966 $ \n \n10,117,966 $ \n \n10,596,961 \n \n75,000 \n \n75,000 \n \n94,868 \n \n10,333,643 \n \n11,070,441 \n \n11,369,600 \n \n554,787 \n \n1,662,528 \n \n1,598,468 \n \n741,183 \n \n741,183 \n \n913,667 \n \n23,000 \n \n23,000 \n \n29,229 \n \n33,000 \n \n33 000 \n \n678 312 \n \n$ \n \n21,878,579 $ \n \n23,723,118 $ \n \n25,281,105 \n \n$ \n \n13,654,585 $ \n \n14,686,589 $ \n \n15,650,605 \n \n652,417 777,972 623,452 295,853 1,388,332 226,927 1,650,233 1,188,791 340,211 \n30,082 1,413,718 \n325,000 \n \n807,993 843,190 623,452 326,990 1,388,332 239,847 1,699,129 1,227,063 347,565 \n3,000 \n38,382 1,413,718 \n325,000 \n \n830,193 939,144 638,133 348,784 1,540,375 226,997 1,710,815 1,127,790 281,771 \n1,568 411,859 \n28,572 1,293,046 \n324,624 564,229 \n \n$ \n \n22,567,573 $ \n \n23,970,250 $ \n \n25,918,505 \n \n$ \n \n-688 994 $ \n \n-247 132 $ \n \n-637 400 \n \n$ \n \n50,000 $ \n \n-425,000 \n \n$ \n \n-375 000 $ \n \n$ \n \n-1,063,994 $ \n \n3,856,168 \n \n-330,695 \n \n50,000 $ -736 873 -686,873 $ -934,005 $ 3,856,168 -330 695 \n \n586,736 -676,233 \n-89 497 -726,897 \n2,984,097 \n \n$ \n \n2 461 479 $ \n \n2,591,468 $ \n \n2,257,200 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual (1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n DAWSON 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) \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 Grants to Local Educational Agencies School Improvement Title II Enhancing Education Through Technology Improving Teacher Quality TitleV Innovative Education Program Strategies Vocational Education - Basic Grants to States High School Program Basic Grant Professional Development \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nN/A $ N/A \n$ \n \n(2) 1209734 \n1,209,734 \n \n10.550 \n \nNIA \n$ \n \n75256 1284990 \n \n* 84.027 84.027 84.173 \n \nN/A $ NIA N/A \n$ \n \n20,291 429,226 \n21 344 \n470,861 \n \n84.010 84.010 \n84.318 84.367 \n84.298 \n84.048 84.048 \n \nN/A N/A \nN/A N/A \nNIA \nN/A N/A \n$ \n \n493,170 5,064 \n14,539 108,900 \n16,308 \n24,233 639 \n1 133 714 \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n- 30 - \n \n$ ======2,=4=18=,7=0=4 \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"2\" \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 School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($83.611) were not maintained separately and are included in the 2003 National School Lunch Program. \nMajor programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dawson County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the basic financial statements. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n DAWSON 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 School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Food Services Vocational Education Austerity Reduction Other State Programs After School Programs Georgia\"s Reading Challenge Health Insurance Mentor Teachers National Teacher Certification Post Secondary Options Preschool Handicapped Program Lottery Programs Assistive Technology Computers in the Classroom Technology Installation \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ \n \n581,746 \n \n279,779 \n \n1,489,345 \n \n381,544 \n \n721,676 \n \n232,159 \n \n1,477,181 \n \n1,059,618 \n \n331,021 \n \n322,992 77,562 \n838,745 163,363 301,804 108,439 \n50,368 103,906 35,276 228,769 74,637 \n48,550 \n \n346,355 497,750 680,770 \n \n368,025 88,422 19,000 72,168 12,307 13,926 82,534 45,706 \n-322,115 \n16,716 37,804 246,238 14,608 21,420 \n1,081 52,247 \n2,182 51,010 71,100 \n \n$ 41,866 \n \n$ 254,243 \n \nTOTAL \n581,746 279,779 1,489,345 381,544 721,676 232,159 1,477,181 1,059,618 331,021 \n322,992 77,562 \n838,745 163,363 301,804 108,439 \n50,368 103,906 35,276 228,769 74,637 \n48,550 \n346,355 497,750 680,770 \n368,025 88,422 19,000 72,168 12,307 13,926 82,534 45,706 \n-322,115 \n16,716 37,804 246,238 14,608 21,420 \n1,081 52,247 \n2,182 51,010 71,100 \n254,243 \n41 866 \n \nSee notes to the basic financial statements. \n \n$ \n \n11,369,600 $ \n \n254 243 $ ==1;,,;1.,;;,6;;;,23~,;;;_84;,;;3;,. \n \n- 32 - \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"4\" \n \nPROJECT \nPayment of principal and interest due on the 1997A Bonds coming due October 1, 2002, through and including April 1, 2006. \nThe acquisition, construction and equipping of two elementary schools, one new middle school and necessary furnishings and equipment, including the acquisition of all necessary property. \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$ 1,265,000 $ 1,265,000 $ \n \n824,125 \n \nOngoing \n \n20,535,000 \n \n20,535,000 \n \n529,279 $ \n \n6,637,227 Ongoing \n \n$ 21,800,000 $ 21,800,000 $ 1,353,404 $ 6,637,227 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dawson County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 1,262,215 \n \nCurrent Year \n \n334,958 \n \nTotal \n \n$ 1,597,173 \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n DAWSON 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 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 \n771,752 $ 1,083,738 $ \n \n54,078 $ \n \n1,137,816 \n \n361,119 \n \n218,309 \n \n218,309 \n \n1,964,647 \n \n2,454,433 \n \n189,879 \n \n2,644,312 \n \n494,135 \n \n338,725 \n \n338,725 \n \n957,709 \n \n1,311,696 \n \n96,474 \n \n1,408,170 \n \n276,469 1,930,309 1,412,221 \n436,614 2,177,558 \n145,496 59,672 \n137,163 44,523 \n \n278,905 1,933,637 1,981,972 \n451,517 \n192,075 1,307,724 \n202,335 129,460 149,436 \n9,873 165,143 \n17,702 \n \n112,227 168,485 \n74,780 \n69 116 17,493 1,099 \n69 801 \n9,169 3,566 \n \n278,905 2,045,864 2,150,457 \n526,297 \n69 192,191 1,325,217 203,434 129,529 150,237 \n9,873 174,312 \n21,268 \n \n$ \n \n11,169,387 $ 12,226,680 $ \n \n728,305 $ \n \n12,954,985 \n \n300,577 64,649 \n \n434,432 32,903 \n \n184,504 31,746 \n \n618,936 64,649 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n11,534,613 $ 12,694,015 $ \n \n944,555 $ ===,,;,1,;;e3,.;;,63;;,;8;.,;,5;,,;,7=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- 35- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nJune 22, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson 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 Dawson County Board ofEducation as of and for the year ended June 30, 2003, which collectively comprise Dawson County Board of Education's basic financial statements and have issued our report thereon dated June 22, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Dawson 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 of our 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 Dawson 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 certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dawson County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6421-03-01 and FS-6421-03-02. \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 none of the reportable conditions described above is a material weakness. \nThis report is intended solely for the information and use of the management, members of the Dawson County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~~ \n \nRWH:gp 2003-34YB-30 \n \nState Auditor \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nJune 22, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dawson County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2003. Dawson 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 Dawson County Board of Education's management. Our responsibility is to express an opinion on Dawson County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 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 Dawson 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 Dawson County Board of Education's compliance with those requirements. \n2003SA-10 \n \n In our opinion, the Dawson County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2003. \nInternal Control Over Compliance \nThe management of Dawson 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 Dawson County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use of the management, members of the Dawson 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~~ \nell W. Hinton State Auditor \nRWH:gp 2003SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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-6421-01-01 FS-6421-02-01 FA-6421-02-01 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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 Dawson County Board ofEducation'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 Dawson County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements Employee Compensation \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dawson County Board of Education disclosed no instances of noncompliance 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 Dawson 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 Dawson 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 .510(a) of 0MB Circular A-133 The Dawson County Board ofEducation'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: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.010 Elementary and Secondary Education Act - Title I - School Improvement 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.027 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool \n \n- 1- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nI SUMMARY OF AUDITOR'S RESULTS \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n9. Low Risk Auditee The Dawson County Board of Education 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 REVENUE/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6421-03-01 \nOur examination of the principal's accounts disclosed weaknesses in internal control as discussed below: \nCash and Cash Equivalents  The bank reconciliation function is not separated from the record keeping and voucher payment functions. \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  One bank reconciliation was not performed.  Of the fifty receipts tested, twenty-seven did not contain adequate documentation. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Based on a sample of fifty vouchers, forty were not approved by the principal.  The remaining ten vouchers were approved by the principal after the expenditure was incurred.  Seven vouchers did not include receiving documentation.  Five payments included sales tax.  No voucher package included a purchase order.  Fourteen voucher packages did not include an invoice.  One expenditure was charged to the incorrect fund. \n-2- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUIVALENTS REVENUE/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6421-03-01 These deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal accounts sites, for the accounting functions and their failure to ensure established controls were functioning as designed. Management should implement additional procedures to ensure that the key accounting functions of custody, record keeping, and authorization are segregated. EMPLOYEE COMPENSATION Detailed Listing of Employee Compensation Not Reconciled Reportable Condition Finding Control Number: FS-6421-03-02 The detailed listing of employee compensation submitted by the School District to the Georgia Department of Audits and Accounts did not include payments made by school activity accounts (principal's accounts). The principal's accounts included $28,741 of employee compensation paid directly to employees. The condition occurred because management allowed individual schools to pay employees. Procedures should be established to ensure that all employee compensation anc,l appropriate withholdings are paid through the School District. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-3- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2001-h2002","title":"Dawson County Board of Education, Dawsonville, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2002-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Report year covers fiscal year.","Has supplements: Dawson County Board of Education, Dawsonville, 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 ... (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 9, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dawson County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dawson County--Auditing--Periodicals","Education--Georgia--Dawson County--Finance--Statistics--Periodicals"],"dcterms_title":["Dawson County Board of Education, Dawsonville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. 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'., r -. :., .. , \n \n., ,.,''  I - \nI,,, \n \n DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n8 \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING AND INDNIDUAL FUND STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n20 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n22 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n24 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n26 \n \nDEBT SERVICE FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n28 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n29 \n \nK \n \nFIDUCIARY FUND TYPE \n \nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUND \n \n30 \n \n DAWSON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nADDIDONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n31 \n \n2 SCHEDULE OF STATE REVENUE \n \n33 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n35 \n \nALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n36 \n \n5 \n \nBY SITE \n \n37 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONlROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONlROL 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 CONlROL OVER COMPLIANCE IN ACCORDANCE WITH O:MB CIRCULAR A-133 \n \nSECTION ill 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 W. R1,ssELL \n \nH1NTON \n \nSTATE AUDITOR \n \n1404) 656-2174 \n \nDEPARTl\\1ENT OF AUDITS AND ACCOUNTS \n254 Wa,hing1on S1rce1. S W, Sullc 214 Atlanrn, Georgia 30334-8400 \nMarch 7, 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson 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 of the Dawson County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Dawson County Board of Education'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 \nL. \n \n * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \n* School activity accounts maintained at the individual schools are not included in the \ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \n* The Board of Education did not recognize as expenditures, in the year ended \nJune 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded 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, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \nIn our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Dawson County Board of Education as ofJune 30, 2002, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America \nIn accordance with Government Auditing Standards, we have also issued our report dated March 7, \n2003, on our consideration of the Dawson County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Dawson County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal 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 general-purpose financial statements. Such information has been subjected to the \n2002ARL-13 \n \n auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \nRespectfully submitted, \n \nRWH:gp 2002ARL-13 \n \nState Auditor \n \n DAWSON COUNTY BOARD OF EDUCATION \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2002 \n \nASSETS \nCash and Cash Equivalents \nAccounts Receivable \nlnventones Food Donated Commod1t1es Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt Capital Lease Agreements \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 3,302,16943 $ \n \n56,444 25 $ 4,485,099 30 \n \n374,848.27 \n \n183,496.60 \n \n615,520.89 \n \n15,572.31 4,670.18 \n \nTotal Assets \n \n$ 316TT1017.70 $ \n \n260,183.34 $ 51100.s20 19 \n \nLIABlblTl!;S AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable \nTotal Liabihbes \nFUND EQUITY \nFund Balances Reserved For Debt Service For lnventones Food Donated Commodrttes Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undes1gnated \nTotal Fund Equity \n \n$ \n \n791.46 $ \n \n36,839.12 \n \n6,485.76 \n \n119,150.03 \n \n10,141.42 \n \n$ \n \n10,000.00 \n \n$ \n \n1,2n.22 $ 166,130.57 $ \n \n10,000.00 \n \n$ \n$ 3,669,740.48 $ 3,669,740.48 $ \n \n15,572.31 4,670.18 \n$ \n73,810.28 94,os2 n $ \n \n1,019,155.52 4,042,805.50 \n28,659.17 \n5,090,620.19 \n \nTotal LJabihbes and Fund Equity \n \n$ 3,STT,01770 $ 260,183.34 $ 5,100,620 19 \n \nThe notes to the general-purpose finanaal statements are an integral part of this statement -2- \n \n EXHIBIT\"A\" \n \nDEBT SERVICE \nFUND \n \nFIDUCIARY FUND TYPE AGENCY FUND \n \n$ 4,141,39919 $ \n \n0.00 \n \n8,383 34 \n \nACCOUNT GROUP GENERAL \nLONG-TERM DEBT \n \nTOTALS {Memorandum Onl~} JUNE 30, 2002 JUNE 30, 2001 \n \n$ 11,985,11217 $ 15,076,988 15 \n \n1,182,249.10 \n \n843,767 00 \n \n15,572.31 4,670.18 \n \n9,071.97 7,554.36 \n \n$ \n \n4,149,782.53 \n \n4,149,782.53 \n \n6,809,723.59 \n \n12,255,217.47 1,296,564.26 \n \n12,255,217.47 1,296,564.26 \n \n11,685,276.41 1,434,174 34 \n \n$ 4,149,782.53 $ \n \n0.00 $ \n \n17,701,564.26 $ 30,889,168.02 $ 35,866,555.82 \n \n$ \n \n37,630.58 $ \n \n2a,n5.07 \n \n125,635.79 \n \n110,740.05 \n \n10,141.42 \n \n2,289.97 \n \n415,666.86 \n \n10,000.00 \n \n189,104.00 \n \n160,002.45 \n \n$ \n \n1,296,564.26 \n \n1,296,564.26 \n \n1,434,174.34 \n \n16,405,000.00 16,405,000.00 18,495,000.00 \n \n$ \n \n17,701,564.26 $ 17,884,972.05 $ 20,835,752.74 \n \n$ 4,149,782.53 \n0.00 $ $ 4,149,782.53 $ $ 4,149,782.53 $ \n \n$ 4,149,782.53 $ 6,809,723.59 \n \n15,572.31 4,670.18 1,019,155.52 4,042,805.50 \n \n9,071.97 7,554.36 4,781,236.29 52,124.74 \n \n000 \n \n3,n2.209.93 \n \n3,371,092.13 \n \n0.00 \n \n$ 13,004,195.97 $ 15,030,803.08 \n \n0.00 $ \n \n17i701,564.26 $ 301889,168.02 $ 35,866,555.82 \n \n-3- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of lnstrudlonal Services Educational Media Services General Administration School Administrabon Business Administrabon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operabon Community Services Operations \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOT!jER Flf!IAN~IN~ SQURQES {!.!SES) \nCompensabon for Sale of Assets Capital Leases Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nResidual Equity Transfer \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 10,290,382 13 $ \n9,268,128 09 236,782.75 \n$ 19,795,292.97 $ \n \n161,969 00 1,240,427 54 \n739,857 57 \n2,142,254 11 \n \n$ 12,521,625.49 $ \n615,723.05 749,023.28 459,421.32 278,699.59 1,290,024.18 171,650.38 1,406,436.37 1,051,681 87 232,450.34 \n36,402 82 46,019.95 221,655.80 \n232,315.87 25,094.14 \n \n743,664.25 100,730.46 \n29,479.99 31,350 45 \n4,757 54 112.55 \n1,296,377.76 \n \n$ 19,338,224 45 $ \n \n$ \n \n457,068.52 $ \n \n2,206,473.00 -64,218.89 \n \n$ \n \n218,196.00 \n \n$ \n \n-465,977.00 \n \n$ \n \n-247,781.00 $ \n \n$ \n \n209,287.52 $ \n \n3,267,452.96 \n \n193,000.00 \n \n74,390.00 \n74,390.00 \n10,17111 80,265 50 \n6,500.34 -2,88418 \n \nFUND BALANCE JUf!IE 30 \n \n$ 3,669,740 48 $ \n \nThe notes to the general-purpose finanaal statements are an integral part of this statement. -4- \n \n94 052 77 \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n{Memorandum Onl~} \n \nYEAR ENDED \n \nJUNE 301 2002 \n \nJUNE 30, 2001 \n \n$ 3,622,457.41 $ 254,415.26 \n$ 3,876,872.67 $ \n \n$ \n326,826.81 105,622.99 \n \n10,452,351 13 $ 1,240,427.54 \n13,217,412.31 1,336,678 57 \n \n9,716,347.97 1,014,117.56 11,772,858.49 1,799,209.66 \n \n432,449 80 $ 26,246,869.55 $ 24,302,533.68 \n \n$ 13,265,289.74 $ 11,895,640.19 \n \n$ 3,827,800.52 \n \n716,453.51 n8,503.27 459,421.32 310,050.04 1,290,024.18 171,650.38 1,406,436.37 1,056,439.41 232,450.34 \n112.55 1,332,780.58 \n46,019.95 4,049,456.32 \n \n632,564.59 n6,852.47 440,286.16 276,233.35 1,055,901.37 174,552.44 1,355,882.16 905,916.54 162,527.34 \n1,051.85 1,157,194.12 \n10,878.47 4,342,356.45 \n \n123,490.21 $ 51,509.79 \n \n2,090,000.00 855,192.50 2,598.35 \n \n2,445,806.08 931,796 43 2,598.35 \n \n1,866,215.63 859,171.86 4,835.71 \n \n$ 4,002,800.52 $ 2,947,790.85 $ 28,495,288.82 $ 25,918,060.70 \n \n$ -125,927.85 $ -2,515,341.05 $ -2,248,419.27 $ -1,615,527.02 \n \n$ \n \n391,587.00 \n \n$ \n \n391,587 00 \n \n$ \n \n140,955.15 \n \n$ \n \n218,196.00 \n \n1,067,050.66 \n \n465,9n.OO \n \n259,786.59 \n \n-465,9n.oo \n \n-259,786.59 \n \n$ \n \n218,196.00 $ 1,208,005 81 \n \n$ \n \n265,65915 $ -2,515,341.05 $ -2,030,223.27 $ -407,521.21 \n \n4,873,361.03 \n \n6,809,723.59 \n \n15,030,803.08 \n \n15,434,878.08 \n \n-48,399.99 \n \n-144,600.01 \n \n6,500.34 -2,884.18 \n000 \n \n1,392.85 2,053.36 \n \n$ 5,090,620 19 $ 41149?82.53 $ 13.004, 195.97 $ 15,030,803.08 \n \n-5- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL  CNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30 2002 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \n \n$ 9,446,216 00 $ 10,290,382 13 \n \n9,244,967 00 160.158 00 \n \n9,268,128 09 236.782 75 \n \n$ 18.851.341 00 $ 19.795.292 97 \n \nEXPENDITURES \n \nCurrent Instruction Support Services PupilSeMCeS Improvement of lnsll\\lctl0n8I SeMces Educabonal Media SeMces General Adm1n1stration \nSchool Administration \nBusmesa Adm1nistrabon Maintenance and Operation of Plant \nStudent Transportallon SeMC8S \nCentral Support SeMC8S Other Support Services Food Services Operabon Communrty Services Operations \nCaprtal Outlay \nDebtSel'VICe \nTotal Expenditures \nExcess of Revenues over (under) Expendrtures \n \n$ 12,305,192 00 $ 12,521,62549 \n \n462,084.00 761,417 00 454,99900 292,144 00 1,232,647 00 189,294 00 1,459,371 00 1,068,822 00 208,978.00 \n \n615,723.05 749,02328 459,421 32 278,699 59 1,290,024 18 171,850 38 1,406,436 37 1,051,881 87 232,450 34 \n \n18,650.00 23,22800 425,00000 \n \n36,402.82 46,019.95 221,655.80 257,410 01 \n \n$ 18,899.626 00 $ 19,338,224 45 \n \n$ \n \n-48,285 00 $ \n \n457,068.52 \n \nQitfEB fltw!CING SQURCL;S CUSESl \n \nOther Sources Other Uses \n \n$ $ -274,390 00 \n \n218,196 00 -46597700 \n \nTotal Other Financing Sources (Uses) \n \n$ -274,390 00 $ -247,781 00 \n \nExcess of Revenues and Other F1nanang Sources \nover (under) Expenditures and Other F1nancmg Uses $ -322,675.00 $ \n \n209,287.52 \n \nFUND BAlANCE JUL::! l 200] \n \n3,135,554 35 \n \n3,267,452 96 \n \nAdJustments Food Inventory  Net Change in Penod \nDonated CommodrtJes Purchased Food Residual Equity Transfer \n \n193,000 00 \n \nFUND BALANCE JUNE ~!! ~!!2 \n \n$ 218121879 35 $ 31669?4048 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \n$ 69,240.00 $ 161,969 00 \n \n1,089,408 00 \n \n1,240,427 54 \n \n805.941 00 \n \n739.857 57 \n \n$ 1.964,589 00 $ 2, 142,254 11 \n \n$ 598,109 00 $ 743,664 25 \n \n88,608 00 31,770.00 \n \n100,73046 29,479.99 \n \n32,082 00 \n \n31,350 45 \n \n10000 3,587 00 \n2,000 00 1,251,055 00 \n \n4,757 54 \n112 55 1,296,377 76 \n \n$ 2,007,311 00 $ 2,206,473 00 $ -42,722.00 $ -64,218 89 \n \n$ 74,390 00 $ \n \n74,39000 \n \n$ 74,39000 $ \n \n74.39000 \n \n$ 31,66800 $ 136,092.08 37,53509 \n \n10,171 11 80,265.50 \n6,500.34 -2,884 18 \n \n$ 205129517 $ \n \n94,05277 \n \nThe notes to the general-purpose financial statements are an integral part of tlus statement -7- \n \n ----------- \n \nDAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Dawson County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \nGeneral Fixed Assets are recorded as expenditures in the various funds at the time 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 financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements., \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most ofthe 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- 8- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to 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 TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \nAGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \n \n-9- \n \n DAWSON COUNfY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \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 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \nBUDGET \nThe Dawson County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \n- 10- \n \n DAWSON COUN1Y BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \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 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. \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \n \nRECEIVABLES \n \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dawson County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 15, 2001 (levy date). Taxes were due on January 11, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Dawson 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, 2002 for maintenance and operations amounted to $9,184,686.12 and for school bonds amounted to $326,826.81. \n \nTax millage rates levied for the 2001 tax year (calendar year) for the Dawson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n12.746 mills .400 mills \n \n13.146 mills \n \n- 11 - \n \n ------------ \n \nDAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSALES TAXES \nSpecial Purpose Local Option Sales Tax revenue during the year amounted to $3,622,457.41 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. \nINVENTORIES \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \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. 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 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 initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions ofexpenditures in the fund that is reimbursed. \nResidual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity. \nOperating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements. \n \n- 12 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nMEMORANDUM ONLY-TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \nNote 2: 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 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 any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n \n- 13 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2: 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, 2002, the bank balances were $12,752,013.19. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2002, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 4,856,715.48 \n \n2 \n \n337,127.04 \n \n3 \n \n7,558,170.67 \n \nTotal \n \n$12.752.013,19 \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 \n- 14 - \n \n DAWSON COUNTY BOARD OF EDUCATJON \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 4: RISK MANAGEMENT \n \nThe School District participates in the Georgia 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. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \n \nThe School District participates in the Georgia 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 $350,000.00 loss per occurrence, up to the statutory limit. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 150,000.00 $ 10,000.00 \n \nNote 5: OPERATING LEASES \n \nDawson County Board of Education has entered into various leases as lessee for copiers and telephone equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2002, amounted to $64,768.66. Future minimum lease payments for these leases are as follows: \n \n- 15 - \n \n --------- \n \nDAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 5: OPERATING LEASES \n \nYear Ending \n \nAmount \n \n2003 2004 2005 2006 \n \n$ 33,690.59 14,996.00 11,290.00 9.304.00 \n \nTotal \n \n$ 69,280.59 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nCAPITAL LEASES The Dawson County Board ofEducation entered into an agreement July 20, 2000, with the Georgia. School Board Association for the construction and subsequent lease of an athletic complex. Under the terms of the agreement, the School District will make annual payments through July 1, 2007. The Dawson County Board ofEducation also entered into various lease agreements for buses. These lease agreements qualify as capital leases for accounting pwposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2000 \n \n5.125%- 5.5% \n \nGeneral Government - Series 1997 \n \n4.5%-4.6% \n \nGeneral Government - Refunding - Series 1997A 3.95%- 5.0% \n \n$ 6,185,000.00 1,540,000.00 8,680,000.00 \n \n$16,405,000.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: \n \n- 16 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nCapital Leases \n \nGeneral Obligation \nBonds \n \nTotal \n \nBalance July 1, 2001 \n \n$ 1,434,174.34 $18,495,000.00 $19,929,174.34 \n \nAdditions Capital Leases \n \n218,196.00 \n \n218,196.00 \n \nDeductions Debt Retired Payments \n \n2,090,000.00 2,090,000.00 \n \n355,806.08 \n \n355,806.08 \n \nBalance June 30, 2002 \n \n$1,296,564.26 $16,405,000.00 $17,701,564.26 \n \nAt June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nGeneral Obligation \nBonds \n \nTotal Debt \n \n2003 2004 2005 2006 2007 2008 - 2012 2013 - 2017 \n \n$ 396,336.72 $ 3,634,082.50 $ 4,030,419.22 348,817.04 2,254,600.00 2,603,417.04 249,161.00 2,315,937.50 2,565,098.50 222,956.05 2,345,297.50 2,568,253.55 175,000.00 2,369,335.00 2,544,335.00 125,928.47 4,700,580.00 4,826,508.47 3,031,250.00 3,031,250.00 \n \nTotal Principal and Interest $ 1,518,199.28 $20,651,082.50 $22,169,281.78 \n \nDeduct: Imputed Interest \n \n221,635.02 \n \nNet Present Value of Future Minimum Lease Payments $ 1,296,564.26 \n \nNote 7: 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 \n \n- 17 - \n \n --- ---------- \n \nDAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \n Note 7: SHORT-TERM DEBT \n \nConstitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from truces 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 \nBeginning Balance \n \nAdditions \n \nPayments \n \nEnding Balance \n \nTemporary Loans \n \n$==-2--0-0 $ 500,000.00 $ 500.000,00 $====0-,0-0 \n \nNote 8: PRIOR YEAR DEFEASEMENT OF DEBT \n \nIn .fiscal year 1998, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's general-purpose financial statements. At June 30, 2002, $8,000,000.00 ofbonds are outstanding and are considered defeased. \n \nNote 9: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of $284,043.08 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 ofCommunity Health For Health Insurance ofNon-Certified Personnel In the amount of $249,885.08 \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 $34,158.00 \n \nNote 10: 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 \n- 18 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 11: 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 of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their 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 \n2002 2001 2000 \n \n100% 100% 100% \n \n$1,097,505.14 $ 1,216,163.57 $ 1,104,734.77 \n \n- 19 - \n \n DAWSON 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 \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity \nTotal Liabilities and Fund Equity \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n164,306.64 \n \n$ \n \n10,035.00 \n \n15,572.31 4 670.18 \n \n$ \n \n184,549.13 _$-==-=1=0=,0=3=5=00.... \n \n$ \n \n10,035.00 \n \n$ \n \n21,964.92 \n \n68,531.44 \n \n$ \n \n90,496.36 $ \n \n10,035.00 \n \n$ \n \n15,572.31 \n \n4,670.18 \n \n73,810.28 $ \n \n$ \n \n941052.n $ \n \n0.00 0.00 \n \n$ \n \n184,54913 $.,_,=-...1.=0=,0=35==00== \n \nSee notes to the general-purpose financial statements. -20- \n \n EXHIBIT\"E\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n164,306.64 $ \n \n141,427.71 \n \n$ \n \n156,961.91 $ \n \n16,499.69 \n \n183,496.60 \n \n90,836.41 \n \n15,572.31 4,670.18 \n \n9,071.97 7,554.36 \n \n$ \n \n156,961.91 $ \n \n16,499.69 $ \n \n368,045.73 $ _=:ii2ii::::4=8=,8=90,.,..4=5=- \n \n$ \n \n81,327.70 $ \n \n14,874.20 \n \n50,618.59 \n \n10,141.42 \n \n$ \n \n156,961.91 $ \n \n16,499.69 $ 16,499.69 $ \n \n107,862.39 $ 36,839.12 119,150.03 10,141.42 \n273,992.96 $ \n \n26,819.86 28,775.07 110,740.05 \n2,289.97 \n168,624.95 \n \n$ \n \n15,572.31 $ \n \n4,670.18 \n \n9,071.97 7,554.36 \n \n$ \n \n0.00 $ _______0._00_ \n \n73,810.28 \n \n63,639.17 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n94,052.77 $ _ _-=8\"\"'01\"2\"='65::a.:;;:;.;50\"- \n \n$ \n \n156,961.91 $ \n \n16.499.69 $ \n \n368,045.73 $=-2=48===,8=90=.4-5... \n \n- 21 - \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND \nYEAR ENDED JUNE 30, 2002 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Student Transportation Services Central Support Services Other Support Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n78,854.00 $ \n \n483,678.05 \n \n669,626.82 \n \n$ 1,232,158.87 $ \n \n83,115.00 83,115.00 \n \n$ \n \n83,115.00 \n \n$ 1,296,377.76 \n \n$ 1,296,377.76 $ \n \n$ \n \n-64,218.89 $ \n \n83,115.00 0.00 \n \n74,390.00 \n \n$ \n \n10,171.11 $ \n \n0.00 \n \n80,265.50 \n \n0.00 \n \n6,500.34 \n-2,884.18 \n \n$ \n \n94,052.77 $-=--=0===00= \n \nSee notes to the general-purpose financial statements. \n-22- \n \n EXHIBIT \"F\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n756,749.49 \n \n$ \n \n$ \n \n756,749.49 $ \n \n$ 70,230.75 70,230.75 $ \n \n161,969.00 $ 1,240,427.54 \n739,857.57 \n2,142,254.11 $ \n \n129,042.00 1,014,117.56 \n734,385.31 \n1,8TT,544.87 \n \n$ \n \n660,549.25 \n \n30,499.71 $ 29,479.99 31,350.45 \n4,757.54 \n \n112.55 \n \n$ \n \n756,749.49 $ \n \n$ \n \n0.00 $ \n \n$ 70,230.75 \n70,230.75 $ 0.00 $ \n \n743,664.25 $ \n100,730.46 29,479.99 31,350.45 4,757.54 \n112.55 1,296,3TT.76 \n2,206,473.00 $ \n-64,218.89 $ \n \n546,098.24 \n80,239.27 83,391.04 \n8,694.48 235.00 \n12,545.50 1,051.85 \n1,141,436.91 \n1,873,692.29 \n3,852.58 \n \n74,390.00 \n \n59,786.59 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n10,171.11 $ \n \n63,639.17 \n \n0.00 \n \n0.00 \n \n80,265.50 \n \n13,180.12 \n \n6,500.34 -2,884.18 \n \n1,392.85 2,053.36 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \nn 94,052. $-=====8==0=,2=ss=..5..o. _, \n \n-23- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND \nJUNE 30, 2002 \n \nASSETS Cash and Cash Equivalents Accounts Receivable \nTotal Assets \nLIABILITIES AND FUND EQUITY LIABILITIES \nContracts Payable Retainages Payable \nTotal Liabilities FUND EQUITY \nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated Total Fund Equity \nTotal Liabilities and Fund Equity \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n28,659.17 $ 1,029,155.52 \n \n$ \n \n28,659.17 $ 1,029, 155.52 \n \ns _ _ _1_0_.._,o-\"-0_0_._o_o__ \n$ ___1_0..0.._0_0_._oo_ 1 \n \n$ 1,019, 155.52 \n \n$ _ _..;;;2=8=,6=59;;.;..;..;17_ \n \n$ \n \n28,659.17 $ \n \n0.00 1,019, 155.52 \n \n$ \n \n28,659.17 $ 1,029,155.52 \n \nSee notes to the general-purpose financial statements. -24- \n \n EXHIBIT\"G\" \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n0.00 $ 3,427,284.61 $ 4,485,099.30 $ 5,468,131.89 \n \n615,520.89 \n \n615,520.89 \n \n10,000.00 \n \n$====-=o=..o..o_ $ 4,042,aos.so $ s,100,620.19 $ s,41a1131.a9 \n \n$ $ _ _...1...;;;;.o._,o_oo_=.00....;;... \n \n415,666.86 189,104.00 \n \n$ \n \n10,000.00 $ _--\"6__0..4...,..n..__o__.a__s__ \n \n$ $ _ _ _ _ _o_.00_ $ _ _ _ _....o.=.o=o_ $ \n \n$ 4,042,805.50 \n0.00 \n4,042,aos.so $ \n \n1,019,155.52 $ 4,042,805.50 \n28,659.17 \ns,ooo,s20.19 $ \n \n4,781,236.29 52,124.74 \n40,000.00 \n4,873 1361.03 \n \n$===-====o=.o=o= $ 4,042,aos.so $ s,100,s20.19 $ 5,478,131.89 \n \n-25- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND \nYEAR ENDED JUNE 30, 2002 \n \nREVENUES \nState Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCapital Outlay Dues and Fees Land and Land Improvements Building and Building Improvements Equipment \nDebt Service Principal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCompensation for Sale of Assets Capital Leases Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nResidual Equity Transfer \nFUND BALANCE JUNE 30 \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n0.00 \n \n$ \n \n161,344.36 \n \n$ \n \n0.00 $ \n \n161,344.36 \n \n$ \n \n11,340.83 $ 3,661,692.94 \n \n123,490.21 51,509.79 \n \n$ \n \n186,340.83 $ 3,661,692.94 \n \n$ -186,340.83 $ -3,500,348.58 \n \n$ \n \n175,000.00 \n \n$ \n \n$ \n \n175,000.00 $ \n \n-68,732.19 -68,732.19 \n \n$ \n \n-11,340.83 $ -3,569,080.n \n \n40,000.00 \n \n4,781,236.29 \n \n-193,000.00 \n \n$ \n \n28,659.17 $ 1,019,155.52 \n \nSee notes to the general-purpose financial statements. \n-26- \n \n EXHIBIT\"H\" \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n0.00 \n \n$ \n \n$ ______o\"'\".o\"\"\"o_ $ \n \n3,622,457.41 $ 93,070.90 \ns 3,715,528.31 \n \n$ 3,622,457.41 \n254.415.26 \ns 3,876,872.67 \n \n40,000.00 459,647.54 499,647.54 \n \n$ \n \n637.89 \n \n$ \n \n4,600.00 $ \n \n4,600.00 \n \n1,361,888.33 \n \n$ \n \n16,587.00 \n \n54,686.75 \n \n3,744,307.52 \n \n2,556,707.71 \n \n78,893.00 \n \n78,893.00 \n \n123,490.21 51,509.79 \n \n$ \n \n16,587.00 $ \n \n138,179.75 $ 4,002,800.52 $ 3,919,233.93 \n \n$ \n \n-16,587.00 $ 3,Sn,348.56 $ -125.927.85 $ -3.419.586.39 \n \n$ \n \n140,955.15 \n \n950,000.00 \n \n$ \n \n16,587.00 $ \n \n268,732.19 $ \n \n460,319.19 \n \n-68.732.19 \n \n200,000.00 \n \n$ \n \n16,587.00 $ \n \n268,732.19 $ \n \n391,587.00 $ 1,290,955.15 \n \n$ \n \n0.00 $ 3,846,080.75 $ \n \n265,659.15 $ -2,128,631.24 \n \n0.00 \n \n52,124.74 \n \n4,873,361.03 \n \n7,001,992.27 \n \n144,600.01 \n \n-48,399.99 \n \n$ -===--=====-=-o=.o...o..... $ 4,042,805.50 $ 510901620.19 s 4,8731361.03 \n \n- 27- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2002 \n \nEXHIBIT\"!\" \n \nASSETS Cash and Cash Equivalents 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 301 2001 \n \n$ 1,695,003.67 $ 2,446,395.52 $ 4,141,39919 $ 6,229,985.90 \n \n8,383.34 \n \n8,383 34 \n \n579?37.69 \n \n$ 1,703,387.01 $ \n \ns 2,446,395.52 \n \n41149l82.53 $ 6 1809?23 59 \n \nFUND EQUITY \nFund Balances Reserved For Debt Service Unreserved Undesignated \n \n$ 1,703,387.01 $ 2,446,395.52 $ \n0.00 ____o=.oo---- \n \n4,149,782.53 $ \no.oo \n \n6,809,723.59 \no.oo \n \nTotal Fund Equity \n \n$ 1,703,387.01 $ 2,446,395.52 $ 4, 149?82.53 $ 6,809,723.59 \n \nSee notes to the general-purpose finanaal statements. -28- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nDEBT SERVICE FUND YEAR ENDED JUNE 30. 2002 \n \nEXHIBIT J\" \n \nREVENUES \nTaxes Other Funds \nTotal Revenues \nEXPENDITURES \nDebt Service Pnncrpal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND a~NCE JI.lb)'. l \nResidual Equity Transfer \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \n \n$ 326,826.81 8,192.30 $ \n$ 335,019.11 $ \n \n$ 97,430 69 \n97,430.69 $ \n \n326,826.81 $ 3,979,583 78 \n \n105,622 99 \n \n263,796.40 \n \n432,449.80 $ 4,243,380.18 \n \n$ 487.583.55 $ 1,602,416.45 $ 2,090,000.00 $ 1,665,000.00 \n \n421,402.50 \n \n433,790.00 \n \n855,192.50 \n \n828,425.41 \n \n2,598.35 \n \n2,598 35 \n \n4 835.71 \n \n$ 911,584.40 $ 2,036,206.45 $ 2,947,790 85 $ 2,498,261.12 \n \n$ -576,565.29 $ -1,938,n5.76 $ -2,515,341.05 $ 1,745,119.06 \n \n2,279,952.30 \n \n4,529,n12s \n \n6,809,723.59 \n \n5,064,604.53 \n \n-144,600.01 \n \n-144,600.01 \n \nFUND BALANCE JUNE 30 \n \n$ 1,703,387.01 $ 2,446,395.52 $ 4,149,782.53 $ 6,809,723.59 \n \nSee notes to the general-purpose financial statements. \n \n-29- \n \n DAWSON COUNT.\\l.,BOARD OF EE\u003eUCA-TION STATEMENT OF,GHANGES IN ASSE;iiS'AN-D LIABlklTIES \nFIDUCIARY Fl'.JNfifr.ifP.E'- AGENCY FUND YEAR ENDED JUNE 30- 2002 \n \nEXHIBIT\"K\" \n \nGEORGIA SCHOOL BOARD ASSOCIATION \nASSETS Cash and Cash Equivalents \n \nBALANCE JULY 11 2001 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 301 2002 \n \n$ 160,002 45 $ 3,916 66 $ 163,91911 $=--=-_o__o_o= \n \nLIABILITIES Funds Held for Others \n \n163,91911 $ _ _ _ _0_00.... \n \nSee notes to the general-purpose financial statements. \n \n- 30- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutnbon Cluster Pass-Through From Georgia Department of Educallon Food and Nutnt1on Program Food SeMces 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 D1stnbullon Program (1) \nTotal U.S. Department of Agncullure \nEducabon,U.S.Departrnentof Speaal Educabon Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Ad Part B - Special Educallon Capaaty Building Flow Through Preschool \nTotal Speoal Education Cluster \nOther Programs Pass-Through From Georgia Department of Educallon Elementary and Secondary Education Ad TIiie I Grants to Local Educational Agencies TIiie II Eisenhower Professional Development TllleVI Innovative Educallon Program Strategies Class Size Reduction Vocabonal Educabon - Basic Grants to States High School Program Basic Grant \nTotal U.S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nNIA $ 99,379.27 \n \n(2) \n \nNIA \n \n3251205.99 $ 11237,284.97 (3) \n \n$ 424,585.26 $ 1,237,284.97 \n \n10.550 \n \nNIA \n \n591092.79 \n \n59,092 79 \n \n$ 483,678.05 $ 1,296,377.76 \n \n84.027 84.027 84.173 \n \nNIA $ \n \n795.00 $ \n \nNIA \n \n242,423.53 \n \nNIA \n \n171933.60 \n \n$ 261,152.13 $ \n \n795.00 242,423.53 \n17,933 60 \n261,152.13 \n \n* 84.010 84.281 84.298 84.340 \n84048 \n \nNIA \n \n385,538.36 \n \n385,538.36 \n \nNIA \n \n17,500.00 \n \n17,500.00 \n \nNIA \n \n14,006.00 \n \n14,006.00 \n \nNIA \n \n58,379.00 \n \n58,379.00 \n \nNIA \n \n20,174.00 \n \n$ 756,749.49 $ \n \n20,174.00 756,749.49 \n \nTotal Federal Financial Assistance \nNIA = Not Available \n \n$ 1124oi421.54 $ 2,053,127.25 \n \n- 31 - \n \n DAWSON COUNTY BOARD OF E0UCATION SCHEDULE OF B\u003cPENDITURES OF F5DERAL AWARDS \nYEAR ENDED JUNE -30. 2002 \n \nSCHEDULE \"1\" \n \nNotes to the Schedule of Expendrtures of Federal Awards \n( 1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donatedcommodit1es received and/or consumed by the system dunng the current fiscal year \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included 1n the 2002 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source. \nMaJor Programs are identified by an astensk (i in front of the CFDA number \nThe School D1stnct did not provide Federal Assistance to any Subredp1ent \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dawson County Board of Education and is presented on the modified acatJal basis of accounting whlch is the basis of accounting used in the presentation of the general-purpose finanaal statements \n \nSee notes to the general-purpose finanaal statements. \n \n- 32- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2002 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \nGRANTS Education, Georgia Department of Quality Basic Educallon Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Earty lntervenllon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) -Early Intervention Program Middle School (6-8) Program High School General Education (9-12) Program Vocallonal Laboratory (9-12) Program Students with D1sabUllles category 1 category II category 111 Category IV categoryV Gifted Student - category VI Remedial Education Program Allematlve Education Program English Speakers of Other Languages (ESOL) 20 Days Additional Instruction Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Vocational Supervisors Food Services Vocational Education Other State Programs Health Insurance Mentor Teachers Preschool Handicapped Program Pnncipal Supplements Post Secondary Options Lottery Programs Computers In the Classroom \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program \n \nGOVERNMENTALFUNDTYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 566,830 00 219,658.00 \n1,395,519.00 308,190.00 732,790.00 56,919.00 \n1,283,857.00 1,063,805.00 \n306,160.00 \n278,697.00 85,388.00 \n620,231.00 127,378.00 94,371.00 114,383 00 11,376.00 97,578.00 22,431.00 68,505.00 227,039.00 42,870.00 1,480,490.00 \n \n$ 566,830 00 219,658.00 \n1,395,519 00 308,190.00 732,790.00 56,919.00 \n1,283,857.00 1,063,805.00 \n306,160.00 \n278,697.00 85,388.00 \n620,231.00 127,378.00 94,371.00 114,383.00 \n11,376.00 97,578.00 22,431.00 68,505.00 227,039 00 42,870.00 1,480,490 00 \n \n380,714.00 115,740.00 20,000.00 72,168 00 \n13,926.00 $ \n65,905.00 \n \n78,854.00 \n \n249,885.08 12,546.00 49,981.00 12,041.00 1,089.00 \n \n83,115.00 \n \n380,714.00 115,740.00 20,000.00 72,168.00 \n13,926.00 78,854.00 65,905.00 \n249,885.08 12,546.00 49,981.00 12,041.00 1,089.00 \n83,115.00 \n \n34,158.00 \n \n34,158.00 \n \n32,208.85 25,555.20 \n \n32,208.85 25,555.20 \n \n$ 10,290,382.13 $ 161,96900 $ 10,452,351.13 \n \nSee notes to the general-purpose financial statements. \n \n- 33- \n \n DAWSON COUNTY BOARD OF EDUCATION \nSCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2002 \n \nSCHEDULE \"3\" \n \nPROJECT \nPayment of pnnopal and interest due on the 1993 and 1994 Bonds \nAcqulsillon, construcllon and equipping of a new elementary school and necessary furnishings and equipment, lndudlng the acquIsI1lon of all necessary property \nPaymentofpnnopalandlnterestdue on the 1997A Bonds coming due October 1, 2002 through and lndudlng April 1, 2006 \nThe acqlislbon, construction and equipping of two elernerrtary schools, one new rruddle school and necessary fumls~ngs and eqlipment, lndudlng the acquisition of all necessary property \n \nORIGINAL ESTIMATED \nCOST !1} \n \nCURRENT ESTIMATED COSTS!2} \n \nAMOUNT EXPENDED IN CURRENT YEAR !3} !4} !5} \n \nAMOUNT EXPENDED \nIN PRIOR YEARS !3} \n \nPROJECT STATUS \n \n$ 3,500,000 00 $ 3,500,000 00 $ \n \n2,43645 $ 3,497,563.55 Completed \n \n6,809,000.00 \n \n6,809,000.00 \n \n133,579.75 \n \n6,570,308.23 Completed \n \n1,265,000.00 \n \n1,265,000.00 \n \nOngoing \n \n20,535,000.00 20,535,000 00 \n \n3,666,292.94 \n \n2,970,933.93 Ongoing \n \n$ 32,109,000.00 $ 32,109,000.00 $ 3,802,309.14 $ 13,038,805.71 \n \n(1) The School District's original cost estimate as specified In the resolution calling for the Imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projecls. Includes all cost from project Inception to completion. \n \n(3) The voters of Dawson County approved the lmposlllon of a 1% sales tax to fund the above projeds and retire associated debt. Amounts expended for these projecls may Include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) The debt for the 1994 Series Bond Issue was retired through the sale of the 1997A Refimlng Bond Issue The School Dlstnd will utilize the SPLOST proceeds budgeted for this project to retire a portion of the 1997A Refunding Bond \nIssue. \n \n(5) In addition to the expenditures shown above, the School Dlstrid has lnamed Interest to provide advance funding for the above projects as follows: \n \nPrior Year Current Year \n \n$ 828,425.41 433,79000 \n \nTotal \n \n$ 1,262,215.41 \n \nSee notes to the general-purpose financial statements. \n \n-35- \n \n DAWSON COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM /QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Earty lntervenbon Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early lntervenbon (4-5) Program Middle School (6-8) Program High School General Educabon (9-12) Program Vocabonal Laboratory (9-12) Program Students with Disabihbes Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Altemabve Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n752,29900 $ 787,791.62 $ \n \n51,859 43 $ \n \n839,651 05 \n \n291,531.00 \n \n268,142 67 \n \n268,142.67 \n \n1,852,136.00 \n \n1,839,086.33 \n \n117,834.00 \n \n1,956,920 33 \n \n409,031.00 \n \n561,992.82 \n \n561,992.82. \n \n968,344.00 \n \n1,232,895.69 \n \n67,653 48 \n \n1,300,549 17 \n \n79.760.00 1,703,938.00 1,411,885.00 \n406,337.00 1,600,695.00 \n151,808.00 15,098.00 \n129,506.00 20,no.oo \n \n170,413 69 1,889,756.76 1,921,015.33 \n424,294.92 \n205,863.03 969,126.92 109,016.24 63,634.78 \n96,793.89 29,340.86 137,093.23 \n \n115,234.65 136,155.06 \n80,930.60 \n22.99 3,n5.51 18,156 35 6,960.28 \n1,292.24 \n7,560.21 1,192.22 \n \n170,413 69 2,004,991 41 2,057,170.39 \n505,225.52 \n22.99 209,638.54 987,283.27 115,976.52 \n63,634.78 98,086.13 29,340.86 144,65344 \n1,192.22 \n \n$ \n \n9,802,138.00 $ 10,706,258.78 $ 608,627.02 $ 11,314,885.80 \n \n301,327.00 56,896.00 \n \n352,755.23 34,208.04 \n \n100,894.07 22,687.96 \n \n453,649.30 56,896 00 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n10,160,361 00 $ 11,093,222.05 $ 732,209.05 $ 11,825,431.10 \n \n(1) Composed of State Funds plus Local Five MIii Share. \n \nSee notes to the general-Plll)OS8 finanaal statements. \n \n-36- \n \n DAWSON COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"5\" \n \nSITE Robinson Elementary School Dawson County High School Black's Mill Elementary School Dawson County Middle School Cross Roads Central Office (Alternative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n2,753,083.00 $ 3,048,141.04 \n \n2,364,010.00 \n \n2,990,500.41 \n \n2,419,665.00 \n \n2,782,903.48 \n \n2,135,874.00 \n \n2,328,187.05 \n \n109,445.53 \n \n1291506.00 \n \n55?08.29 \n \n$ \n \n9,802, 138.00 $ 11,314,885.80 \n \nSee notes to the general-purpose financial statements. - 37- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russi::LL W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTI\\1ENT OF AUDITS AND ACCOUNTS \n25..l Wa~hmgton Street. S W.. Sulle 214 Atlanta, Georgia 30334-8400 \nMarch 7, 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \n \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \n \nLadies and Gentlemen: \n \nWe have audited the financial statements of Dawson County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated March 7, 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. \n \nCompliance \n \nAs part of obtaining reasonable assurance about whether Dawson County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \n \nInternal Control Over Financial Reporting \n \n;:_ \n \nIn planning and performing our audit, we considered Dawson 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 \n \n2002YB-41 \nL \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 our judgment, could adversely affect Dawson 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-6421-02-01. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6421-02-01 to be a material weakness. \nThis report is intended solely for the information and use of the management, members of the Dawson 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:gp 2002YB-41 \n \n~\\1)-~ \nState Auditor \n \n Ru,M,1.1. \\\\'. H1r,, ror,, \nSTATE AUDITOR (4()-4) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 W,1~hing1on Sirccl. S W. Su11c 214 A1lan1a, Georgia 30334-8400 \nMarch 7, 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dawson County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Dawson County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofDawson County Board of Education's management. Our responsibility is to express an opinion on Dawson County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 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 Dawson 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 Dawson County Board ofEducation's compliance with those requirements. \n2002SA-30 \n \n In our opinion, the Dawson 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 Dawson County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, \ncontracts and grants applicable to Federal programs. In planning and performing our audit, we \nconsidered Dawson 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 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 Dawson 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-6421-02-01. \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 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 disclos~ 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 that the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use of the management, members of the Dawson 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~-~h \nRus ell W. Hinton State Auditor \nRWH:gp 2002SA-30 \n \n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DAWSON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6421-00-01 FS-6421-01-0 I \n \nFurther Action Not Warranted Unresolved - No Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6421-01-01 \n \nFor the fiscal year 2002, we did not maintain fixed assets on our ledger. The Fasgov software has been loaded in fiscal year 2003 and an appraisal has been performed on our assets. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nI SUMMARY OF AUDITOR'S RESULTS \nI. Type of Report Issued on the Financial Statements The auditor's opinion on the Dawson County Board ofEducation'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 Dawson County Board ofEducation 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 of the Dawson County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dawson County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compl~ance requirement. \nCash Management \nThe reportable condition described above is not considered to be a material weakness. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dawson County Board of Education'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 Dawson County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) ofOMB Circular A-133. Thisauditfindingisincludedinsection IV of this report. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n- 1- \n \n -- - - - - - - -- - - -- - - ---- - - - - - - - - - - - - \nDAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nI SUMMARY OF AUDITOR'S RESULTS \n9. Low Risk Auditee The Dawson County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \nII 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-6421-02-01 \nThe Dawson County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance 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. \nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-6421-02-01 \nA review ofcash management procedures for the Elementary and Secondary Education Act - Title I Program (CFDA 84.010) disclosed that cash draws utilizing DE form 0147, \"Quarterly Report of Expenditures and Estimated Requirements for Grant Funds\", were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During Fiscal Year 2002, the program had excessive ending monthly cash balances in six months. Procedures should be implemented to minimize the time elapsing between the request of funds from the Georgia Department of Education and disbursement of such funds by the School District. \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b2000-h2001","title":"Dawson County Board of Education, Dawsonville, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. 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(Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 9, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dawson County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dawson County--Auditing--Periodicals","Education--Georgia--Dawson County--Finance--Statistics--Periodicals"],"dcterms_title":["Dawson County Board of Education, Dawsonville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. 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' ',i_. \n,, \n.' ...... \n, \n.,...,.,,,., ' --- \n \n DAWSON COUNfY 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 EXPENDITIJRES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING AND INDIVIDUAL FUND STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nDEBT SERVICE FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nK \n \nFIDUCIARY FUND TYPE \n \nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUND \n \nPage \n2 4 6 7 \n20 22 24 26 28 29 \n31 \n \n DAWSON COUNTY BOARD OF EDUCATION - TABLE OF CONfENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDIDONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nI SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n32 \n \n2 SCHEDULE OF STATE REVENUE \n \n34 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n35 \n \nALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n36 \n \n5 \n \nBY SITE \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 CIRCULAR A-133 \n \nSECTION ID 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 I \nRL1Si'IELI. \\\\'. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Wa!\u003ehmgton Street. S.W., Smle 214 Atlanta, Georgia 30334-8400 \nJune 11, 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 Dawson 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-pwpose financial statements of the Dawson County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-pwpose financial statements are the responsibility of the Dawson County Board of Education's management. Our responsibility is to express an opinion on these general-pwpose 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-pwpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2001ARL-13 \n \n  The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \n School activity accounts maintained at the individual schools are not included in the general-pwpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \n The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \nIn our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Dawson County Board of Education as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated June 11, 2002, on our consideration of the Dawson County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Dawson County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal 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 ofthe general-purpose financial statements. Such information has been subjected to the \n2001ARL-13 \n \n auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \nRespectfully submitted, \n \nRWH:as 2001ARL-13 \n \nRus ell W. Hinton Stat Auditor \n \n DAWSON COUNTY BOARD OF EDUCATION \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001 \n \nCash and Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commod1t1es Purchased Food \nAmount Available m Debt Service Fund \nAmount to be Provided m Future Years For Payment of. Bond Debt Capital Lease Agreements \nTotal Assets \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 3,104,260 06 $ 114,607 85 $ 5,468,131.89 \n \n163,192.90 \n \n90,836 41 \n \n10,000.00 \n \n9,071 97 7,554.36 \n \n$ \n \n5,478,131 89 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retamages Payable Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable \nTotal Liabihlies \nFUND EQUITY \nFund Balances Reserved For Debi Service For lnventones Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST ProJects Unreserved Undes1gnated \nTotal Fund Equ1ly \n \n$ \n \n28,775 07 \n \n110,740.05 \n \n2,289 97 \n \n$ \n \n415,666.86 189,104 00 \n \n$ 141,80509 $ \n \n604,770.86 \n \n$ \n$ 3,267,452 96 $ 3,267,452 96 $ \n \n9,071 97 7,554 36 \n$ \n63,639 17 \n80,265.50 $ \n \n4,781,236.29 52,124.74 \n40,000 00 \n4,873,361 03 \n \nTotal Llab1hltes and Fund Equrty \n \n$ 31261i4s2 96 $ 222,070 59 $ 5,478,131.89 \n \nThe notes to the general-purpose finanaal statements are an integral part of this statement -2 - \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nFIDUCIARY FUND TYPE AGENCY FUND \n \nACCOUNT GROUP GENERAL LONG-TERM DEBT \n \nTOTALS \n \n(Memorandum Onl~l \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ 6,229,985.90 $ \n \n160,002 45 \n \n$ 15,076,988.15 $ 14,657,391.01 \n \n579,737.69 \n \n843,767 00 \n \n903,845.15 \n \n$ \n \n6,809,723.59 \n \n9,071.97 7,554.36 \n6,809,723.59 \n \n7,679.12 5,501 00 \n5,064,604 53 \n \n11,685,276 41 143417434 \n \n11,685,276 41 1434174 34 \n \n15,095,395 47 568,339.31 \n \ns 1601002 45 \n \n19,929,174.34 $ 35,866,555.82 $ 36,302,755.59 \n \n$ \n \n28,775.07 $ \n \n34,410 93 \n \n110,740.05 \n \n100,197 79 \n \n2,289 97 \n \n4,929.48 \n \n415,666.86 \n \n189,104.00 \n \n$ \n \n160,002.45 \n \n160,002 45 \n \n$ \n \n1,434,174 34 \n \n1,434,174.34 \n \n568,339 31 \n \n18,495,000.00 \n \n18,495,000 00 \n \n20,160,000 00 \n \n$ \n \n160,002 45 $ \n \n19,929,174 34 $ 20,835,752 74 $ 20,867,877 51 \n \n$ 6,809,723.59 \n \n000 $ \n \n000 \n \n$ 6,809,723 59 $ \n \n000 \n \n$ 6,809,723.59 $ 5,064,604 53 \n \n9,071.97 7,554 36 4,781,236 29 52,124.74 \n \n7,67912 5,501.00 6,990,882 16 11,11011 \n \n3,371,092 13 \n \n3,355,101 16 \n \n$ 15,030,803 08 $ 15,434,878 08 \n \ns 61809,723.59 s \n \n160,002 45 $ \n \n19 929 174 34 $ 35.866,555 82 $ 36,302,755 59 \n \n-3- \n \n DAWSON COUNTY BOARD OF EDUCATION \nCOMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GO\\JERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2001 \n \nRE\\/ENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent lnstrud1on Support Services Pupil Sel'VIC8S Improvement of lnstruc:bonal Servtces Educational Media Services General Adm1mstrat1on School Adm1mstrabon Business Adm1Nstrat1on Maintenance and Operabon of Plant Student Transportation SeMC8s Central Support Services Other Support Services Food Services Operation Community Services Operabons \nCapital Outlay Debt Service \nPnncipal Interest Paying Agent Fees \nTotal Expendrtures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES! \nAccrued Interest on Bonds Sold Compensabon for Sale of Assets Premiums on Bonds Sold Proceeds from General Obllgabon Bonds \nPar Value Caprtal Leases Operabng Transfers In Operabng Transfers Out \nTotal Other Financing Sources {Uses) \nExcess of Revenues and Other F1nanang Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodrues Purchased Food \nFUNP BALANCE JUNE 30 \nThe notes to the general-purpose final\"ICIBI statements are an integral part of this statement \n-4- \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 9,547,305 97 $ \n7,793,274 71 341 380 41 \n$ 17,681,961 09 $ \n \n129,042 00 1,014,117 56 \n734 385 31 \n187754487 \n \ns $ 11,349,541 95 \n552,325 32 693,461 43 440,28616 267,538 87 1,055,901 37 174,55244 1,355,882 16 905,681 54 149,981 84 \n15,757 21 10,878 47 423,122 52 \n201,215 63 30,746 45 \n \n546,098 24 \n80,239 27 83,391 04 \n8,694 48 \n235 00 12,545 50 \n1,051 85 1,141,436 91 \n \ns 17,626,873 36 $ \n \n$ \n \n55 087 73 $ \n \n1,873,69229 3 852 58 \n \n$ \n \n117,050 66 \n \n$ \n \n-259, 786,59 \n \ns \n \n-142 735 93 $ \n \n$ \n \n-87,648 20 $ \n \n3,355,101 16 \n \n59,786 59 \n59 786 59 \n63,63917 13,180 12 \n1,392 85 2 053 36 \n \n$ 312671452 96 $ \n \n80 265 50 \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum On~l YEAR ENDED \n \nJUNE 301 2001 \n \nJUNE 30, 2000 \n \n$ \n \n40,000 00 \n \n$ 9,716,347 97 $ 8,904,010 17 \n \n1,014,117.56 \n \n997,342 37 \n \n$ 3,979,583 78 \n \n11,772,858 49 \n \n11,084,345 13 \n \n459 647 54 \n \n263 796 40 \n \n1,799,209 66 \n \n1,043,332 66 \n \n$ \n \n499647 54 $ 4,243,380 18 $ 24,302,533 68 $ 22,029,030 33 \n \n$ 3,919,233 93 $ \n$ 3,919,233 93 $ $ -3,419,586 39 $ \n \n$ 11,895,64019 $ 10,541,555 87 \n \n632,564 59 776,852 47 440,286 16 276,233 35 1,055,901 37 174,55244 1,355,882 16 905,916 54 162,527 34 \n1,051 85 1,157,194 12 \n10,878 47 4,342,356 45 \n \n852,962 57 627,970 59 426,44944 277,244 89 912,070 16 235,614 86 1,102,966 78 1,151,244 71 143,595 77 \n96560 1,085,983 79 \n67,75862 190,206 89 \n \n1,665,000 00 828,425 41 4 835 71 \n \n1,866,215 63 859,171 86 4 835 71 \n \n1,703,602 43 694,873 57 3 590 15 \n \n2,498,261 12 $ 25,918,060 70 $ 20,018,656 69 \n \n1745119 06 $ -1,61S,527 02 $ 2,010,373 64 \n \n$ \n \n140,955 15 \n \n950,000 00 200,000 00 \n$ 1.290,955 15 \n \n$ \n \n$ \n \n140,955 15 \n \n4,670 14 25,155 85 \n \n1,067,050 66 259,786 59 -259,786 59 \n \n6,385,000 00 451,848.00 274,078 31 -274 078 31 \n \n$ 1.208,005 81 $ 6.866.673 99 \n \n$ -2, 128,631 24 $ 7,001,992 27 \n \n1,745,119.06 $ \n \n-407,521.21 $ \n \n5,064,604 53 \n \n15,434,878 08 \n \n8,877,047 63 6,560,935 81 \n \n1,392 85 2 053 36 \n \n-2, 117 31 -988 05 \n \n$ 4,873,361 03 $ 6,809,723 59 $ 15,030,803 08 $ 15,434,878 08 \n \n-5- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - (NQN-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30 2001 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS} \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \n \ns $ 9,112,047.00 \n \n9,547,305.97 \n \n7,931,201.00 225,49100 \n \n7,793,274.71 341,380 41 \n \nTotal Revenues \n \n$ 17,268,739 00 $ 17,681,961.09 \n \nEXPENDITURES \n \nCurrent lnstructJon Support Services Pupil Services Improvement of Instructional Services Educational Media SeMces General Admimstratlon School Adm1mstrabon Business Admin1strabon Mamtenance and Operation of Plant Student Transportation Services Central Support Services Other Support SeMces Food SelVIC8s Operation Community Services Operations \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ 11,184,507.00 $ 11,349,541.95 \n \n835.458.00 761,631.00 435,113 00 281,645.00 1,041,702 00 215,209 00 1,339,539.00 1,072,03300 122,784.00 \n \n552,325.32 693,46143 440,286.16 267,538.87 1,055,901.37 174,55244 1,355,882 16 905,681 54 149,981.84 \n \n18,601 00 4,196 00 431,500.00 \n \n15,757.21 10,878.47 423,122.52 231,962 08 \n \ns s 17,743,918 00 \n \n17,626,873 36 \n \ns $ -475,179 00 \n \n55,087 73 \n \nQTHER FINANCIN~ SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \n \ns \n$ -270,00000 \ns -270,000.00 $ \n \n117,050.66 -259,786 59 \n-142,735.93 \n \nExcess of Revenues and Other Financing Sources \ns over (under) Expenditures and Other Financing Uses $ -745,179 00 \n \n-87,648.20 \n \nFUND BAbAN~E JULY 1 2000 \nAdJustments Food Inventory - Net Change in Penod \nDonated Commod1t1es Purchased Food \n \n3,054,267.74 42,415.50 \n \n3,355,101.16 \n \nFUNQ BA!.t!NCE JUNE 30 ~QQ1 \n \ns s 213511504 24 \n \n312671452 96 \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS} \n \n$ 125,000 00 $ 129,042 00 \n \n879,098.00 \n \n1,014,117 56 \n \n602,564.00 \n \n734,385 31 \n \n$ 1,606,662.00 $ 1,8TT,544 87 \n \n$ 428,098 00 $ 546,098.24 \n \n69,000 00 32,838.00 \n \n80,239 27 83,391 04 \n \n8,80600 \n \n8,69448 \n \n2,700.00 8,000.00 \n1,127,220.00 \n \n23500 12,545.50 \n1,051.85 1,141,436.91 \n \ns 1,676,662.00 $ 1,873,692 29 \n \n$ -70,000 00 $ \n \n3,852 58 \n \ns s 70,00000 \n \n59,786 59 \n \ns 70,00000 $ \n \n59,786 59 \n \n$ \n \ns 000 \n \n63,639 17 \n \n7,599 87 \n \n13,18012 \n \n17,017.23 \n \n1,392 85 2,053 36 \n \ns 24 617 10 $ \n \n801265 50 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -6- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Dawson County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \nGeneral Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \nAlthough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \n \n-7- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \nAGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available -spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \n \n-8- \n \n DAWSON COUN1Y BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nRevenues are recognized when susceptible to accrual (i.e.;when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District wt::reemployed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \nBUDGET \nThe Dawson County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \n-9- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \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. \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. \nPROPERTY TAXES \nThe Dawson County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on December 10, 2000 (levy date). Taxes were due on February 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Dawson 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 $7,717,748.70 and for school bonds amounted to $473,584.29. \nTax millage rates levied for the 2000 tax year (calendar year) for the Dawson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \n- 10 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSchool Operations School Bonds \n \n11.946 mills .700 mills \n \n12.646 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. The School District collected revenue from two separate sales tax referendums during the fiscal year. Sales tax revenues on the first referendum during fiscal year 2001, which terminated on March 31, 2001, amounted to $2,084,622.21 and were recorded in the Debt Service Fund. Collections on the second referendum began on April 1, 2001, and sales tax revenues during the fiscal year amounted to $1,421,377.28. These amounts were recorded in the Debt Service Fund. The State will terminate collection of this second tax once an additional $20,378,622.72 has been collected or on March 31, 2006, 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 \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are \nrecognized in the financial statements during the year bonds are issued. In addition, general \nobligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \n \nINTERFUND TRANSACTIONS \n \nThe School District has the following types of interfund transactions: \n \n- 11 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 200 l \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \nOperating transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY -TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \nNote 2: DEPOSITS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. 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 \n- 12 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $15,630,165.35. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 5,882,417.08 \n \n2 \n \n451,392.25 \n \n3 \n \n9,296,356.02 \n \nTotal Note 3: NON-MONETARY TRANSACTIONS \n \n$15,630,165.35 \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \n- 13 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 4: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2000 2001 \n \nBeginnmg of Year Liability \n \nClaims and Changes 1~ Estimates \n \nClaims Paid \n \nEnd of Year Liabihty \n \n$ \n \n0.00 $ \n \n5,116.65 $ \n \n5,116.65 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \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 United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 150,000.00 $ 10,000.00 \n \n- 14 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 5: OPERATING LEASES \n \nDawson County Board of Education has entered into various leases as lessee for copiers and telephone equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $72,886.20. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nAmount \n \n2002 2003 2004 2005 2006 \n \n$ 64,401.66 28,919.59 10,592.00 6,886.00 5,634.00 \n \nTotal \n \n$ 116,433.25 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nCAPITAL LEASES The Dawson County Board of Education has entered into an agreement July 20, 2000, with the Georgia School Board Association for the construction and subsequent lease ofan athletic complex. Under the terms of the agreement, the School District will make annual payments through July 1, 2007. The Dawson County Board ofEducation also entered into various lease agreements for buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2000 \n \n5.125% - 5.5% \n \nGeneral Government - Series 1997 \n \n4.5%-4.6% \n \nGeneral Government - Refunding - Series 1997A 3.95%- 5.0% \n \nGeneral Government - Refunding - Series 1993 \n \n3.0%-4.3% \n \n$ 6,385,000.00 2,940,000.00 8,765,000.00 405,000.00 \n \n$18,495.000.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \n \n- 15 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nCapital Leases \n \nGeneral Obligation \nBonds \n \nTotal \n \nBalance July 1, 2000 \n \n$ 568,339.31 $20,160,000.00 $20,728,339.31 \n \nAdditions Capital Leases \n \n1,067,050.66 \n \n1,067,050.66 \n \nDeductions Debt Retired \n \n201.215.63 1.665.000.00 1.866.215.63 \n \nBalance June 30, 2001 \n \n$ 1,434.174.34 $18,495,000.00 $19.929.174.34 \n \nAt June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nGeneral Obligation \nBonds \n \nTotal Debt \n \n2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 \n \n$ 384,425.65 $ 2,953,900.00 $ 3,338,325.65 348,352.72 3,634,082.50 3,982,435.22 300,833.04 2,254,600.00 2,555,433.04 201,177.00 2,315,937.50 2,517,114.50 175,000.00 2,345,297.50 2,520,297.50 435,568.53 6,098,460.00 6,534,028.53 4,002,705.00 4,002,705.00 \n \nTotal Principal and Interest $ 1,845,356.94 $23.604.982.50 $25.450.339.44 \n \nDeduct: Imputed Interest \n \n411,182.60 \n \nNet Present Value of Future \nMinimum Lease Payments $ 1.~~H,l :Z4.34 \n \n- 16  \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 7: 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 \nBeginning Balance \n \nAdditions \n \nPayments \n \nEndmg Balance \n \nTemporary Loans \n \n$=====0-,0..,.0 $ 800,000.00 $ 800,000.00 $=====0\"\"\".0..,..0 \n \nNote 8: PRIOR YEAR DEFEASEMENT OF DEBT \n \nIn fiscal year 1998, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's general-purpose financial statements. At June 30, 2001, $8,000,000.00 of bonds are outstanding and are considered defeased. \n \nNote 9: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of $314,692.34 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 $248,602.58 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System {TRS) Employer's Cost In the amount of $21,579.76 \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 $44,510.00 \n \n- 17 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 10: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001: \n \nProject \n \nUnearned Executed Contracts \n \nKilough Elementary School \n \n$ 3,202,228.73 \n \nThe amount described in this note is not reflected in the general-purpose financial statements. \n \nNote 11: 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 \nNote 12: 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 of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their 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 \n- 18 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT D 11 11 \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 12: RETIREMENT PLANS \nFiscal Year \n2001 2000 1999 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 1,216,163.57 $ 1,104,734.77 $ 1,016,745.08 \n \n- 19 - \n \n DAWSON 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 \nLOTTERY PROGRAMS \n \n$ \n \n141,427.71 $ \n \n0.00 \n \n9,071.97 7,554.36 \n \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n1sa,054.04 $ ===---===o===oo= \n \n$ \n \n16,027.42 \n \n61,761.12 \n \n$ \n \n77,788.54 \n \n$ \n \n9,071.97 \n \n7,554.36 \n \n63,639.17 $ \n \n0.00 \n \n$ \n \n80,265.50 $ \n \n0.00 \n \nTotal Liabilities and Fund Equity \n \n$ \n \n158,054.04 $ ===-=0==00= \n \nSee notes to the general-purpose financial statements. - 20 - \n \n EXHIBIT\"E\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n141,427.71 $ \n \n70,023.23 \n \n$ \n \n76,069.52 $ \n \n14,766.89 \n \n90,836.41 \n \n73,642.39 \n \n9,071.97 7 554.36 \n \n7,679.12 5,501.00 \n \n$ \n \n76,069.52 $ \n \n14,766.89 $ \n \n248,890.45 $ ==1=5=6=,84=====5==74= \n \n$ \n \n12,052.97 $ \n \n14,766.89 $ \n \n26,819.86 $ \n \n9,429.94 \n \n12,747.65 \n \n28,775.07 \n \n29,108.41 \n \n48,978.93 \n \n110,740.05 \n \n100,197.79 \n \n2,289.97 \n \n2,289.97 \n \n4,929.48 \n \n$ \n \n76,069.52 $ \n \n14,766.89 $ \n \n168,624.95 $ \n \n143,665.62 \n \n$ \n \n9,071.97 $ \n \n7,679.12 \n \n7,554.36 \n \n5,501.00 \n \n$ \n \n0.00 $ _ _ _ _o.a.,.a.o...o__ \n \n63,639.17 \n \n0.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n- - - - - - 80,265.50 $ \n \n13,180.12 \n \n$ \n \n76,069.52 $ \n \n14,766.89 $ \n \n248,890.45 $ ==1=-5-=6==,84=5=.7=-4-= \n \n- 21 - \n \n DAWSON 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 Central Support 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 Commod1t1es Purchased Food \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n73,020.00 $ \n \n406,805.57 \n \n665,463.92 \n \n$ 1I1451289.49 $ \n \n56,022.00 56,022.00 \n \n$ \n \n56,022.00 \n \n$ 1,141,436.91 \n \n$ 1,141,436.91 $ \n \n$ \n \n3,852.58 $ \n \n56,022.00 0.00 \n \n59,786.59 \n \n$ \n \n63,639.17 $ \n \n0.00 \n \n13,180.12 \n \n0.00 \n \n1,392.85 2,053.36 \n \n$ \n \nso,265.50 $ ====--==o=.o=o= \n \nSee notes to the general-purpose financial statements. -22- \n \n EXHIBIT\"F\" \n \nFEDERAL PROGRAMS \n \nOTHER \nPROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 301 2001 \n \nJUNE 30, 2000 \n \n$ \n \n607,311.99 \n \n$ \n \n$ \n \n607,311.99 $ \n \n$ 68,921.39 68,921.39 $ \n \n129,042.00 $ 1,014,117.56 \n734,385.31 \n1,877,544.87 $ \n \n199,912.74 997,342.37 617,404.33 \n1,814,659.44 \n \n$ \n \n490,076.24 \n \n11,317.88 $ 83,391.04 \n8,694.48 235.00 \n12,545.50 1,051.85 \n \n$ \n \n607,311.99 $ \n \n$ \n \n0.00 $ \n \n$ 68,921.39 \n68,921.39 $ 0.00 $ \n \n546,098.24 $ \n80,239.27 83,391.04 \n8,694.48 235.00 \n12,545.50 1,051.85 \n1,141,436.91 \n1,873,692.29 $ \n3,852.58 $ \n \n649,012.45 \n74,138.95 63,000.57 \n6,380.24 227.59 \n11,396.00 965.60 \n1,069,801.34 \n1,874,922.74 \n-60,263.30 \n \n59,786.59 \n \n73,936.31 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n63,639.17 $ \n \n13,673.01 \n \n0.00 \n \n0.00 \n \n13,180.12 \n \n2,612.47 \n \n1,392.85 2,053.36 \n \n-2,117.31 -988.05 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n80,265.50 $ =--==1=3:!::::1,=80==12= \n \n-23- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 \n \nASSETS Cash and Cash Equivalents Accounts Receivable \nTotal Assets \nLIABILITIES AND FUND EQUITY LIABILITIES \nAccounts Payable Contrads Payable Retainages Payable \nTotal Liabilities FUND EQUITY \nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projeds Unreserved Undesignated Total Fund Equity \nTotal Ltabilities and Fund Equity \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n30,000.00 $ 5,386,007.15 \n \n10,000.00 \n \n$ \n \n40,000.00 $ 5,386,007.15 \n \n$ \n \n415,666.86 \n \n189,104.00 \n \n$ \n \n604,770.86 \n \n$ 4,781,236.29 \n \n$ \n \n40,000.00 \n \n0.00 \n \n$ \n \n40,000.00 $ 4,781,236.29 \n \n$ \n \n40,000.00 $ 5,386,007 15 \n \nSee notes to the general-purpose financial statements. - 24- \n \n EXHIBIT\"G\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n52,124.74 $ 5,468,131.89 $ 7,007,294.79 \n \n10,000 00 \n \n$ \n \n52,124.74 $ 5,478,131.89 $ 7,007,294.79 \n \n$ \n \n$ \n \n415,666.86 \n \n189,104.00 \n \n5,302.52 \n \n$ \n \n604,no.86 $ _____5...3.._02_._5__2__ 1 \n \n$ 4,781,236.29 $ 6,990,882.16 \n \n$ \n \n52,124.74 \n \n52,124.74 \n \n11,110.11 \n \n0.00 \n \n40,000.00 \n \n0.00 \n \n$ \n \n52,124.74 $ 4,873,361.03 $ 7,001,992.27 \n \n$ \n \n52 124.74 $ 5:478,131.89 $ 7,007,294.79 \n \n-25- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Support Services Business Administration \nCapital Outlay Dues and Fees Land and Land Improvements Building and Building Improvements Equipment \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nCompensation for Sales of Assets Premiums on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Capital Leases Operating Transfers In \nTotal Other Financing Sources \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFUND BALANCE JUNE 30 \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n40,000.00 \n \n$ \n \n418,632.91 \n \n$ \n \n40,000.00 $ \n \n418,632.91 \n \n$ \n \n637.89 \n \n$ \n \n950,000.00 \n \n411,888.33 \n \n2,556,707.71 \n \n$ \n \n950,000.00 $ 2,969,233.93 \n \n$ \n \n-910,000.00 $ -2,550,601.02 \n \n$ \n \n140,955.15 \n \n$ \n \n950,000.00 \n \n200,000.00 \n \n$ \n \n950,000.00 $ \n \n340,955.15 \n \n$ \n \n40,000.00 $ -2,209,645.87 \n \n0.00 \n \n6,990,882.16 \n \n$ \n \n40,000.00 $ 4,781,236.29 \n \nSee notes to the general-purpose financial statements. - 26- \n \n EXHIBIT\"HH \n \nSPECIAL PURPOSE LOCAL OPTION \nSALES TAX \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ $ _ _ _4_1_.a,0.1._4_...;;.63_ \n \n$ \n \n41 014.63 $ \n \n40,000.00 459,647.54 $ _ _...a5..5.,._,,8_8_4__.0...,;_9_ \n499,647.54 $ ____5_5._,8_84_._0_9__ \n \n$ \n \n76,781.36 \n \n$ \n \n0.00 $ \n \n637.89 \n \n1,361,888.33 \n \n1,700.00 \n \n2,556,707.71 \n \n22,902.40 \n \n35,131.67 \n \n$ \n \n0.00 $ 3,919,233.93 $ \n \n136,515.43 \n \n$ \n \n41,014.63 $ -3,419,586.39 $ \n \n-80,631.34 \n \n$ \n \n140,955.15 \n \n$ \n \n25,155.85 \n \n950,000.00 200,000.00 \n \n6,385,000.00 200,142.00 \n \n$ 1,290,955.15 $ 6,610,297.85 \n \n$ \n \n41,014.63 $ -2, 128,631.24 $ 6,529,666.51 \n \n11 110.11 \n \n7,001,992.27 \n \n472,325.76 \n \n$ \n \n52,124.74 $ 4,873,361.03 $ 7.001,992.27 \n \n-27- \n \n DAWSON COUNTY BOARD OF EDUCATION \nCOMBINING BALANCE SHEET \nDEBT SERVICE FUND \nJUNE 30, 2001 \n \nEXHIBIT\"!\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable \nTotal Assets \nFUND EQUITY Fund Balances \nReserved For Debt Service \nUnreserved Undesignated \nTotal Fund Equity \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$ 2,272,335 69 $ 3,957,650.21 $ 6,229,985.90 $ 4,521,787.21 \n \n7 616 61 \n \n572,121 08 \n \n579,737 69 \n \n542,817.32 \n \n$ 2,279,952.30 $ \n_ _ _ _o. . .,;a.,;oo; . . \n \n4,529,771.29 $ \no oo \n \n6,809,723.59 $ \no.oo \n \n5,064,604 53 \no.oo \n \n$ 2,279,952.30 $ 4,529:771.29 $ 6,809.723 59 $ 5,064.604 53 \n \nSee notes to the general-purpose financaal statements \n \n-28- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nDEBT SERV,CE FUND YEAR ENDED JUNE 30, 2001 \n \nEXHIBIT .r \n \nREVENUES \nTaxes Other Funds \nTotal Revenues \nEXPENDITURES \nDebt Service Pnnapal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nAcaued Interest on Bonds Sold \nExcess of Revenues and Other Financmg Sources over (under) Expenditures \nFUND BAlANCE JULY 1 \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n473,58429 $ 3,505,999.49 $ 3,979,583.78 $ 3,669,207 73 \n \n27,099.37 \n \n236,697.03 \n \n263,79640 \n \n157,629.22 \n \n$ \n \n500,68366 $ 3,742,696.52 $ 4,243,380 18 $ 3,826,836 95 \n \n$ 1,665,000.00 $ 1,665,000 00 $ 1,460,000 00 \n \n828,42541 \n \n828,425 41 \n \n673,747 50 \n \n$ \n \n4,835.71 \n \n4 835 71 \n \n3,590 15 \n \n$ \n \n4,835 71 $ 2,493,425 41 $ 2,498,261.12 $ 2,137,337 65 \n \n$ \n \n495,847.95 $ 1,249,271.11 $ 1,745,11906 $ 1,689,499 30 \n \n467014 \n \n$ \n \n495,847.95 $ 1,249,271.11 $ 1,745,119.06 $ 1,694,16944 \n \n1,784,104.35 \n \n3,280,500.18 \n \n5,064,604 53 \n \n3,370,435 09 \n \nFUND BALANCE JUNE 30 \n \n$ 21279.952.30 $ 4,5291n1.29 $ 61809?23.59 $ 51064,604.53 \n \nSee notes to the general-purpose financial statements. \n \n-29- \n \n DAWSON COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2001 \n \nEXHIBIT\"K\" \n \nGEORGIA SCHOOL BOARD ASSOCIATION \nASSETS Cash and Cash Equivalents \n \nBALANCE JULY 11 2000 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2001 \n \n$ \n \n000 $ \n \n9761636.02 $ \n \n8161633 57 $ \n \n160.002 45 \n \nLIABILITIES Funds Held for Others \n \n$ \n \n000 $ \n \n9761636.02 $ \n \n8161633 57 $ _ _1_6_0,._p.,02...,;,;45_ \n \nSee notes to the general-purpose financial statements \n \n- 31 - \n \n DAWSON COUNTY BOARD Of EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgnculture, U S Department of Child Nutnbon Cluster Pass-Through From Georgia Department of Educabon Food and Nu1nt1on Program Food Services School Breakfast Program Nabonal School Lunch Program \nTotal Child Nutnbon Cluster \nOther Programs Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food D1stnbubon Program (1) \nTotal U S Department of Agnculture \nEducabon, U S Department of Special Educabon Cluster Pass-Through From Georgra Department of Education Individuals with D1sabrhbes Educabon Act Part B - Special EducatJon Capacity Building Flow Through Preschool \nTotal Special Educabon Cluster \nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary EducatJon Act TrUe I Grants to Local EducatJonal Agencies T1tlell Eisenhower Professional Development T1tlelll Technology Literacy Challenge Fund Grants TrtleVI Innovative Education Program Strategies Class Srze Reduction Vocaltonal Education - Basrc Grants to States High School Program Basic Grant \nTotal U S Department of Education \nTotal Federal Frnancral Assistance \nNIA = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n. 10 553 . 10 555 \n \nNIA \n \ns 83,084 10 \n \n(2) \n \nNIA \n \n278,926 65 $ 1 141 436 91 (3) \n \n$ 362,010 75 $ \n \n1,141,436 91 \n \n10 550 \n \nNIA \n \n44,794 82 \n \n44 794 82 \n \n$ 406,805 57 $ 1 186,231 73 \n \n84 027 84 027 84173 \n \nNIA \n \n$ \n \n368 71 $ \n \nNIA \n \n75,643 03 \n \nNIA \n \n16,556 00 \n \n$ 92,567 74 $ \n \n368 71 75,643 03 16 556 00 \n92,567 74 \n \n84 010 84 281 84 318 84 298 84 340 \n84 048 \n \nNIA \n \n274,588 81 \n \nNIA \n \n16,000 00 \n \nNIA \n \n147,532 44 \n \nNIA \n \n13,188 00 \n \nNIA \n \n46,421 00 \n \nNIA \n \n17 014 00 \n \n$ 607,311 99 $ \n \n274,588 81 16,000 00 \n147,532 44 13,188 00 46,421 00 \n17,014 00 607 311 99 \n \n$ 1014,11756 $ \n \n1793,54372 \n \n 32 - \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"1\" \n \nNotes to the Schedule Qf Expenditures of Federal Awards \n(1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng the current fiscal year \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included m the 2001 Nabonal School Lunch Program \n(3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source \nMa1or Programs are identified by an astensk (\") m front of the CFDA number \nThe School D1stnct did not provide Federal Assistance to any Subrec1p1ent \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant act1V1ty of the Dawson County Board of Educabon and 1s presented on the modified accrual basis of accounting which 1s the basis of accounbng used m the presentation of the general-purpose financial statements \n \nSee notes to the general-purpose financial statements \n \n 33  \n \n DAWSON COUNTY BOARD Of EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/fUNQING \nGRANTS Community Affairs, Georgia Department of Legal Assistance Grant \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocatlonal Laboratory (9-12) Program Students wrth D1sab1ht1es Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Altematlve Education Program Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing SeMces Vocational SupeMsors Food Services Vocational Educabon Other State Programs At-Risk Summer School Program Health Insurance lnnovabve Programs Mentor Teachers Mentonng Program Preschool Handicapped Program Pnncipal Supplements Remedial Summer School Teachers' Rebrement Lottery Programs Computera m the Classroom \nOffice of Treasury end Fiscal SeMces Public School Employees Rebrement \nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 40,000 00 $ \n \n40,000 00 \n \n$ 472,199 00 157,202 00 \n1,422,392.00 248,245.00 791,319 00 \n1,293,274 00 1,093,699 00 \n266,864 00 \n20,147 00 85,256 00 588,522 00 100,382 00 \n5,543 00 95,711 00 45,398 00 97,845 00 220,991 00 59,141 00 1,438,622 00 \n \n355,901 00 109,330 00 \n71,387 00 11,453 00 \n$ 42,465 00 \n \n73,020 00 \n \n2,931 96 248,602 58 \n5,000 00 14,507 00 \n6,000 00 40,531 00 11,448 00 \n3,235 67 21,579 76 \n \n56,022 00 \n \n44,510 00 \n \n30,355 00 25,317 00 \n \n472,199 00 157,202 00 1,422,392 00 248,245 00 791,319 00 1,293,274 00 1,093,699 00 266,864 00 \n20,147 00 85,256 00 588,522 00 100,382 00 \n5,543 00 95,711 00 45,398 00 97,845 00 220,991 00 59,141 00 1,438,622 00 \n355,901 00 109,330 00 \n71,387 00 11,453 00 73,020 00 42,465 00 \n2,931 96 248,602 58 \n5,000 00 14,507 00 \n6,000 00 40,531 00 11,448 00 \n3,235 67 21,579 76 \n56,02200 \n44,510 00 \n30,355 00 25,317 00 \n \nSee notes to the general-purpose financial statements \n \n$ 9,547,305 97 $ 129,042 00 $ 40,000 00 $ 9,716,347 97 - 34- \n \n DAWSON COUNTY BOARD OF EDUCATION \nSCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"3\" \n \nPROJECT \nPayment of pnndpal and interest due on the 1993 and 1994 Bonds \nAcqu1slbon, construction, and equIppIng of a new elementary school and necessary furnishings and equipment, indudlng the acquisition of all necessary property \nPayment of principal and interest due on the 1997A Bonds coming due Odober 1, 2002 through and Induding Apnl 1, 2006 \nThe acqulslbon, construcbon and equlpl)lng of two elementary schools, one new middle school and necessary furnishings and equipment, lndudIng the acquIslbon of all necessary property \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS(2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) (5) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS(3) \n \nPROJECT STATUS \n \n$ 3,500,000.00 $ 3,500,000.00 $ \n \n906,418.75 $ 2,591.144.80 Ongoing \n \n6,809,000.00 \n \n6,809,000.00 \n \n1,265,000 00 \n \n1,265,000.00 \n \n6,570,308.23 Completed Ongoing \n \n20,535,000.00 \n \n20,535,000 00 \n \n2,969~33.93 \n \n1,700 00 Ongoing \n \n$ 321109,000.00 $ 321109,000.00 $ 3,875,652 68 $ 9,163,153.03 \n \n(1) The School District's original cost estimate as speafied in the resolution calling for the Imposition of the Local Opbon Sales Tax. \n \n(2) The School Dlstnct's amen! esbmate of total cost for the projects. lndudes all cost from projed lncepbon to complebon \n \n(3) The voters of Dawson County approved the lmpo!1ibon of a 1% sales tax to fund the above proJeds and retire \nassoaated debt. Amounts expended for these pr01eds may lndude sales tax proceeds, state, local property taxes and/or other funds over the life of the projedS. \n \n(4) The debt for the 1994 Senes Bond Issue was retired through the sale of the 1997A Refunding Bond Issue The School Distrid will utilize the SPLOST proceeds budgeted for tills pro)8d to rebre a porbon of the 1997A Refunding Bond Issue \n \n(5) In addlbon to the expenditures shown above, the School Distnd has lnaJrred interest to provrde advance funding for the above projects as follows: \n \nCurrent Year \n \ns____s_2s_i4_2_s_4_1 \n \nSee notes to the general-purpose finanaal statements. \n \n- 35- \n \n DAWSON COUNTY BOARD OF EDUCATION GENERAL FUND - OUAUTY BASIC EDUCATION PROGRAM !OBEI \nALLOTMENTS AND EXPENDITURES - BY PROGRAM \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \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 \nPnmary Grades (1-3) Program \n \nPnmary 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 Disabllrt1es \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategory V \n \nGifted Student - Category VI \n \nRemedial Educatton Program \n \nAttemat1ve Education Program \n \n610,719.00 $ 203,317.00 1,839,652.00 321,068.00 1,023,453.00 1,672,657.00 1,414,537.00 345,149.00 1,034,486.00 \n123,788.00 58,716.00 \n126,548 00 \n \n895,215 48 $ 65,878 42 \n2,129,411.05 155,152.57 \n1,178,127.45 1,732,388 89 1,705,133.22 \n397,989.85 \n3,461 89 201,760.31 837,334.96 \n56,711.14 10,897 39 107,780 56 137,793.06 147,909.05 \n \n39,082 01 $ \n92,815 79 \n50,815.41 79,464.83 83,394.80 69,444 75 \n \n934,297.49 65,87842 \n2,222,226 84 155,152.57 \n1,228,942.86 1,811,853 72 1,788,528 02 \n467,434 60 \n \n535.90 10,159.65 \n436.51 \n69590 \n8,239 72 \n \n3,461.89 202,296 21 847,494.61 \n57,147.65 10,897.39 108,476 46 137,793.06 156,148 77 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n8,774,090.00 $ 9,762,945.29 $ 435,085.27 $ 10,198,030 56 \n \nMedia Center Program Staff and Professional Development \n \n285,819.00 76.491.00 \n \n335,362.72 45,090 15 \n \n96,770.01 31,400.85 \n \n432,132.73 76,491.00 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n9,136,400 00 $ 10,143,398 16 $ 563,256.13 $ 10,706,654 29 \n \n(1) Compnsed of State Funds plus Local Five MIii Share. \n \nSee notes to the general-purpose financial statements \n \n- 36- \n \n DAWSON COUN1Y BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"5\" \n \nSITE Robinson Elementary School Dawson County High School Black's Mill Elementary School Dawson County Middle School Cross Roads Central Office (Alternative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n2,469,080.00 $ 2,882,060.07 \n \n2,073,060.00 \n \n2,589,086.71 \n \n2,113,704.00 \n \n2,478,137.59 \n \n1,991,698.00 \n \n2,092,597.42 \n \n156,148.77 \n \n126,548.00 \n \n$ \n \n8,774,090.00 $ 10,198,030.56 \n \nSee notes to the general-purpose financial statements. - 37- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RussE1.1. W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Su11e 214 Atlanta, Georgia 30334-8400 \nJune 11, 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 Dawson 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 Dawson County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated June 11, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Dawson County Board of Education's financial statements are free of material misstatement, we perfonned 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 perfonning our audit, we considered Dawson County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2001YB-40 \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 Dawson 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-6421-01-01. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above, is considered to be a material weakness. \nThis report is intended solely for the information and use of the management, members of the Dawson 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~-4~ \n \nRWH:as 2001YB-40 \n \nState Auditor \n \n RussELL W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street. SW.. Smte 214 Atlanta, Georgia 30334-8400 \nJune 11, 2002 \n \nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Dawson County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dawson County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Dawson County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Dawson County Board of Education's management. Our responsibility is to express an opinion on Dawson 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 of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dawson 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 Dawson County Board ofEducation's compliance with those requirements. \n2001SA-10 \n \n In our opinion, the Dawson County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001. \nInternal Control Over Compliance \nThe management of Dawson 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 Dawson County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use of the management, members of the Dawson 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 2001SA-10 \n \nState Auditor \n \n SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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-6421-99-01 FS-6421-00-01 \n \nFurther Action Not Warranted Unresolved - No corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6421-00-01 \n \nFor the fiscal year 2001, the Dawson County Board ofEducation did not maintain General Fixed Assets in the Ledger. The State has selected a software to track and depreciate General Fixed Assets and we have had an appraisal done on all assets for fiscal year 2002. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DAWSON 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 Dawson County Board ofEducation'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 Dawson County Board ofEducation 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 of the Dawson County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dawson County Board ofEducation 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 Dawson County Board of Education'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 Dawson County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofO:MB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The Dawson 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 DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeat From Prior Year Finding Control Number: FS-6421-01-01 The Dawson County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-2 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b1999-h2000","title":"Dawson County Board of Education, Dawsonville, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2000-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Report year covers fiscal year.","Has supplements: Dawson County Board of Education, Dawsonville, 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 ... (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dawson County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 9, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dawson County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dawson County--Auditing--Periodicals","Education--Georgia--Dawson County--Finance--Statistics--Periodicals"],"dcterms_title":["Dawson County Board of Education, Dawsonville, 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-bd26-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd26-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"AfJOO \n. RI \n \nE.2to \n \n \n \n'1)2..v:\u003e \n \n\\Cf\\9-2.ooD \n \nSTATE OF GEORGIA  \nDEPARTMENT OF AUDITS AND ACCOUNTS \n \n \n \nOo OooooO O \n1776 \nI \nDAWSON COUNTY BOARD OF EDUCATION \nDAWSONVILLE, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2000 \nRussell W. Hinton State Auditor \n \n DAWSON 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 \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nDEBT SERVICE FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nSCHEDULES \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n2 4 \n6 \n7 \n18 \n20 22 \n24 \n26 \n27 28 30 31 \n \n DAWSON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \n \n4 \n \nOVERALL \n \n5 \n \nBYPROGRAM \n \nPage \n33 34 \n \nSECTION IT \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 AUDI'l'ING 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 ill \nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n, \n \n \n RussELL W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nJune 1, 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 Dawson 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 of the Dawson 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 of the Dawson County Board of Education'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 op1 n1 on. \nAs described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2000ARL-13A \n \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 \nof salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these 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 on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Dawson County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confortnity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated June 1, 2001, on our consideration of the Dawson County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfotmed 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 perfor1ned for the purpose of forrning an opinion on the general purpose financial statements of the Dawson County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of \nManagement and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the \ngeneral purpose financial statements. Such infu1n1ation 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 info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. \n2000ARL-13A \n \n A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made \navailable to the press 6fthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \nRespectfully submitted, \n \nRWH:gp \n2000ARL-13A \n \nRu sell W. Hinton State Auditor \n \n DAWSON COUNTY BOARD OF EDUCATION \n \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP \nJUNE 30. 2000 \n \nASSETS \n \nCash and Cash Equivalents \n \nAccounts Receivable \n \nInventories \n \n \n \nFood \n \nDonated Commodities \n \nPurchased Food \n \nAmount Available in Debt Service Fund \n \nAmount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 3,067,715.72 $ \n \n60,593.29 $ 7,007,294.79 \n \n287,385.44 \n \n73,642.39 \n \n7,679.12 5,501.00 \n \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Deficit Undesignated \nTotal Fund Equity \n \n$ 3,355,101.16 $ \n \n147,415.80 $ _,.;1_.0_0_1_,2_94_.7_9..,. \n \n \n$ \n \n29,108.41 $ \n \n100,197.79 \n \n4,929.48 \n \n5,302.52 \n \n$ 134,235.68 $ _ _--=5.z.::,3~02::-.::52=- \n \n \n$ \n$ 3,355,101.16 $ 3,355,101.16 $ \n \n7,679.12 5,501.00 \n$ \n \n6,990,882.16 11,110.11 \n \n0.00 \n \n0.00 \n \n13,180.12 $ __7:.,i,0:::.:0::.:1.z.::,9~9:::2:::.27:... \n \nTotal Liabilities and Fund Equity \n \n147,415.80 $ __1_,0_0_1_,2_94_.7_9;;... \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-2- \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n$ 4,521,787.21 \n542,817.32 \n \nACCOUNT GROUP \nGENERAL LONG-TERM \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 14,657,391.01 $ 5,989,709.90 \n \n903,845.15 \n \n787,059.12 \n \n$ 5,064,604.53 \n \n7,679.12 5,501.00 \n5,064,604.53 \n \n9,796.43 6,489.05 \n3,370,435.09 \n \n15,095,395.47 568,339.31 \n \n15,095,395.47 568,339.31 \n \n11,864,564.91 360,093.74 \n \n$ 5,064,604.53 $ 20,728,339.31 $ 36,302,755.59 $ 22,388,148.24 \n \n$ \n \n34,410.93 $ \n \n28,724.77 \n \n100,197.79 \n \n102,268.92 \n \n4,929.48 \n \n51,125.00 \n \n50,000.00 \n \n$ \n \n568,339.31 \n \n568,339.31 \n \n360,093.74 \n \n20,160,000.00 \n \n20,160,000.00 \n \n15,235,000.00 \n \n$ 20,728,339.31 $ 20,867,877.51 $ 15,827,212.43 \n \n$ 5,064,604.53 \n0.00 $ 5,064,604.53 \n \n$ \n \n3,033.27 \n \n$ 5,064,604.53 \n \n3,370,435.09 \n \n7,679.12 5,501.00 6,990,882.16 11,110.11 \n3,355,101.16 \n$ 15,434,878.08 $ \n \n9,796.43 6,489.05 428,567.84 43,757.92 \n-16,706.28 2,715,562.49 \n6,560,935.81 \n \n$ 5,064,604.53 $ 20,728,339.31 $ 36,302,755.59 $ 22,388,148.24 \n-3- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES \nYEAR ENDED JUNE 30. 2000 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \n \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nAccrued Interest on Bonds Sold Premiums on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Capital Leases Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 8,704,097.43 $ \n7,415,137.40 212,415.02 \n \n199,912.74 997,342.37 \n617 404.33 \n \n$ 16I331 I649.85 $ _ _1.:.,.,::::,.81;_:4~6,:,::5~9-c:,:_44::,_ \n \n$ 9,892,543.42 $ \n \n649,012.45 \n \n778,823.62 564,970.02 426,449.44 270,864.65 912,070.16 158,833.50 1,102,966.78 1,151,017.12 132,199.77 \n16,182.45 67,758.62 130,472.82 \n \n74,138.95 63,000.57 \n6,380.24 \n227.59 11,396.00 \n965.60 1,069,801.34 \n \n243,602.43 21,126.07 \n \n$ 15,869,880.87 $ _-..:..i1,.=..87:....;4\"\",9'-\"'2\"\"'2.;.;.7..;...4 \n \n$ \n \n461,768.98 $ _ _ _-6:;.;0.,2;;.;::6;.;;;.3.:;.;;;3.;:..0 \n \n$ \n \n451,848.00 \n \n$ \n \n-274,078.31 \n \n73,936.31 \n \n$ \n \n177I769.69 $ _ _....;7..;;;3.;9:,:;.;;;3.=.:6;,;;;.31-'-- \n \n$ \n \n639,538.67 $ \n \n2,715,562.49 \n \n13,673.01 2,612.47 \n \n-2, 117.31 -988.05 \n \nFUND BALANCE JUNE 30 \n \n$ 3,355,101.15 $_....,.,..1;.;;311._8.,0..1..2_ \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n \n-4- \n \n EXHIBIT \"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 301 2000 \n \nJUNE 30, 1999 \n \n$ \n$ ---'5\"\"'5\"\"'8,=8..;..4=O.a....9 \n \n$ \n \n55 884.09 $ \n \n$ \n3,669,207.73 157,629.22 \n \n8,904,010.17 $ 997,342.37 \n11,084,345.13 1,043,332.66 \n \n8,472,715.76 871,808.77 \n9,594,515.40 927,579.51 \n \n3,826,836.95 $ 22,029,030.33 $ 19,866,619.44 \n \n$ 10,541,555.87 $ 8,883,078.42 \n \n$ \n \n76,781.36 \n \n59,734.07 \n \n852,962.57 627,970.59 \n426,449.44 277,244.89 \n912,070.16 \n235,614.86 \n1,102,966.78 \n1,151,244.71 143,595.77 \n965.60 \n1,085,983.79 67,758.62 \n190,206.89 \n \n738,981.32 560,764.68 419,404.57 232,959.45 \n840,175.10 170,468.94 1,062,308.10 877,868.76 \n97,015.33 744.97 \n1,043,897.98 60,726.92 \n2,983,221.94 \n \n$ 1,460,000.00 673,747.50 3,590.15 \n \n1,703,602.43 . 694,873.57 \n3,590.15 \n \n1,362,728.28 892,183.68 3,378.26 \n \n$ \n \n136,515.43 $ 2,137,337.65 $ 20,018,656.69 $ 20,229,906.70 \n \n$ \n \n-80,631.34 $ 1,689,499.30 $ 2,010,373.64 $ \n \n-363,287.26 \n \n$ \n \n$ \n \n25,155.85 \n \n6,385,000.00 \n \n200,142.00 \n \n$ 6,610,297.85 $ \n \n4,670.14 $ 4 670.14 $ \n \n4,670.14 25,155.85. \n \n6,385,000.00 451,848.00 $ 274,078.31 -274,078.31 \n \n213,700.00 212,947.70 -212,947.70 \n \n618661673.99 $ --=-21.a.:::3~7,..:0.:;0.\"\"00~ \n \n$ 6,529,666.51 $ 1,694,169.44 $ 8,877,047.63 $ \n \n-149,587.26 \n \n472,325.76 \n \n3,370,435.09 \n \n6,560,935.81 \n \n6,714,757.45 \n \n-2, 117.31 -988.05 \n \n-5, 139.10 904.72 \n \n$ 7,001,992.27 $ 5,064,604.53 $ 15,434,878.08 $-==6.,,5.6.o..,.9._,3.5....,81_ \n \n-5- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - {NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \n$ 8,413,799.04 $ 8,704,097.43 \n \n6,887,668.00 77 376.37 \n \n7,415,137.40 212,415.02 \n \nTotal Revenues \n \n$ 15,378,843.41 $ 16,331,649.85 \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 Community Services Operations \nCapital Outlay Debt Service \n \n$ 9,849,989.04 $ 9,892,543.42 \n \n716,795.00 543,714.00 425,208.00 261,040.00 833,234.00 164,359.00 1,250,720.00 918,923.00 105,369.00 \n1,800.00 1,200.00 4,088.00 120,000.00 \n \n778,823.62 564,970.02 426,449.44 270,864.65 912,070.16 158,833.50 1,134,616.78 1,151,017.12 132,199.77 \n16,182.45 67,758.62 130,472.82 233,078.50 \n \nTotal Expenditures \n \n$ 15,196,439.04 $ 15,869,880.87 \n \nExcess of Revenues over (under) Expenditures $ 182,404.37 $ __4..:.:6:...:1-'7!I~6:.:8-.:::98~ \n \nOTHER FINANCING SOURCES {USES) \n \nOther Sources Other Uses \n \n$ $ -245,000.00 \n \n451,848.00 -274,078.31 \n \nTotal Other Financing Sources (Uses) $ -245,000.00 $ _--=.1.:..77:....i,.:..76,._,9.:;.6,._,9'- \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures and Other Financing \n \nUses \n \n$ \n \n-62,595.63 $ \n \n639,538.67 \n \nFUND BALANCE JULY 1. 1999 \nAdjustments Food Inventory - Net Change in Period \nDonated Commodities Purchased Food \n \n2,897,404.96 -325,980.66 \n \n2,715,562.49 \n \nFUND BALANCE JUNE 30, 2000 \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ 316,052.74 $ 199,912.74 \n \n950,649.00 \n \n997,342.37 \n \n524,395.00 \n \n617 404.33 \n \n$ 1,791,096.74 $ 1,814,659.44 \n \n$ 716,573.74 $ 649,012.45 \n \n154,024.00 76,039.00 \n \n74,138.95 63,000.57 \n \n6,750.00 \n \n6,380.24 \n \n2,700.00 11,400.00 \n915.00 929,681.00 \n \n227.59 11,396.00 \n965.60 1,069,801.34 \n \n$ 1,898,082.74 $ 1,874,922.74 $ -106,986.00 $ -60,263.30 \n \n$ 45,000.00 $ 73,936.31 \n$ 45,000.00 $ _ _7__3_....._,_9_3__6__..3...1.___ \n \n$ -61,986.00 $ \n290.09 3,426.10 \n \n13,673.01 2,612.47 \n-2,117.31 -988.05 \n \ns_ _ $ -58,269.81 \n \n13.,.._18_0_.1_2_ \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-6- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Dawson County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appoi11ted by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. \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 \nfund is a separate accounting entity with a self-balancing set of accounts. An account group is a \nfinancial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \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 confu1n1 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 confo1m 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-7- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \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. \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., .expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Te11n Debt Account Group. \nGovernmental funds are accounted for using the modified accrua] basis ofaccounting 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. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day \n \n- 8- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nperiod beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nBUDGET \nThe Dawson County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \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 OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \nRECEIVABLES \nReceivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables \n-9- \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \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 Dawson County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on December 10, 1999 (levy date). Taxes were due on February 29, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Dawson 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 Dawson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n12.00 mills .70 mills \n \n12.70 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 $3,224,801.00 and was recorded in the Debt Service Fund. The State will te11ninate collection of this tax once an additional $2,177,589.98 has been collected or on June 30, 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- 10 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL OBLIGATION BONDS \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. 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 ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te1m Debt Account Group. \nINTERFUND TRANSACTIONS \nThe Board has the following types of interfund transactions: \nReimbursements ofexpenditures initially made from a fund that are properly applicable to another \nfund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \nOperating transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY -TOTAL COLUMNS \nTotal columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confo1mity 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 \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 11 Opercent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA45-8-13.l) 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- 11 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \n- \n \nNote 2: DEPOSITS \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate 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 \nAt June 30, 2000, the bank balances were $15,204,684.53. The amounts ofthe total bank balances \nare classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with \nsecurities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized \nwith securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \n \nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \n \n- 12 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 2: DEPOSITS \nRisk Category \n1 \n2 3 \nTotal \n \nBank Balance \n$ 7,243,852.41 336,894.51 \n7,623,937.61 \n$15,204,684.53 \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned \nvalue. See Note 1 - Inventories \n \nNote 4: RISK MANAGEMENT \n \nThe Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \n \nThe Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past  three years. \n \nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n \n1999 2000 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \n$ \n \n0.00 $ \n \n1,786.00 $ \n \n$ \n \n0.00 $ \n \n5,116.65 $ \n \nClaims Paid \n \nEnd ofYear Liability \n \n1,786.00 $ \n \n0.00 \n \n5,116.65 $ \n \n0.00 \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 \n \n- 13 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 4: RISK MANAGEMENT \n \nthrough 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$350,000.00 loss per occurrence, up to the statutory limit. \n \nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Personnel Director Each Principal \n \n$ 150,000.00 $ 14,000.00 $ 10,000.00 \n \nNote 5: OPERATING LEASES \n \n. Dawson County Board ofEducation has entered into various leases as lessee for copiers, telephone equipment and postage machine. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $72,202.32. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nAmount \n \n2001 2002 2003 2004 \n \n$ 70,382.20 56,889.66 21,407.59 3,080.00 \n \nTotal \n \n$ 151,759.45 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nCAPITAL LEASES The Dawson County Board of Education has entered into various lease agreements as lessee for lights, bleachers, portable classrooms and buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \n- 14 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nPurpose \n \nInterest Rates \n \nGeneral Government - Series 2000 \n \n5.125% - 5.5/o \n \nGeneral Government - Series 1997 \n \n4.5%-4.6% \n \nGeneral Government - Refunding - Series 1997A 3.95% - 5.0% \n \nGeneral Government - Refunding - Series 1993 \n \n3.0% - 4.3/o \n \nAmount \n$ 6,385,000.00 4,140,000.00 8,845,000.00 790,000.00 \n$20,160,000.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: \n \nCapital Leases \n \nGeneral Obligation \nBonds \n \nTotal \n \nBalance July 1, 1999 \n \n$ 360,093.74 $15,235,000.00 $15,595,093.74 \n \nAdditions Capital Leases G.0. Bonds \n \n451,848.00 \n \n451,848.00 \n \n6,385,000.00 6,385,000.00 \n \nDeductions Payments \nBalance June 30, 2000 \n \n243,602.43 1,460,000.00 1.703,602.43 $ 568,339.31 $20,160,000.00 $20,728,339.31 \n \nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n2001  2002 \n2003 2004 2005 2006 - 2010 2011 - 2015 \n \nCapital Leases \n \nGeneral Obligation \nBonds \n \nTotal Debt \n \n$ 205,735.49 $ 2,501,414.17 $ 2,707,149.66 183,249.01 2,953,900.00 3,137,149.01 147,175.72 3,634,082.50 3,781,258.22 99,656.04 2,254,600.00 2,354,256.04 2,315,937.50 2,315,937.50 \n7,486,542.50 7,486,542.50 \n4,959,920.00  4,959,920.00 \n \nTotal Principal and Interest $ 635,816.26 $26,106,396.67 $26,742 212 93 \n \nDeduct: Imputed Interest \n \n67,476.95 \n \nNet Present Value of Future Minimum Lease Payments $ 568,339.31 \n \n- 15 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 7: PRIOR YEAR DEFEASEMENT OF DEBT \nIn fiscal year 1998, the Board defeased certain general obligation bonds by placing the proceeds of \nnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the \nBoard's general purpose financial statements. At June 30, 2000, $8,000,000.00 of bonds are \noutstanding and are considered defeased. \n \nNote 8: ON-BEHALF PAYMENTS \nThe Board has recognized revenues and expenditures in the amount of $279,517.39 for health \ninsurance 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 \nIn the amount of $217,092.01 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost \nIn the amount of $20,219.38 \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost \nIn the amount of $42,206.00 \n \nNote 9: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed \nby the Board as of June 30, 2000: \n \nProject \n \nUnearned Executed Contracts \n \nDawson County High School Athletic Complex \n \n$,=====28,000,00 \n \nThe amount described in this note is not reflected in the general purpose financial statements. \n \nNote 10: 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 tc::11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \n \n- 16 - \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 10: CONTINGENT LIABILITIES \n \nThe Board is a defendant in various legal proceedings pertaining to matters incidental to the perforrnance of routine Board operations. The ultimate disposition of these proceedings is not presently detenninable, but is not believed to be material to the general purpose financial statements. \n \nNote 11: 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 \nfrom the Georgia Department of Audits 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 etnployer 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 \n \nPercentage Contributed \n \nRequired Contribution \n \n2000 1999 1998 \n \n100% 100% 100% \n \n$ 1,104,734.77 $1,016,745.08 $ 916,366.10 \n \n- 17 - \n \n DAWSON 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 \n70,023.23 $ \n \n0.00 \n \n7,679.12 5 501.00 \n \n$ \n \n83,203.35 $ ====0==00= \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Deficit Undesignated \nTotal Fund Equity \nTotal Liabilities and Fund Equity \nSee notes to the general purpose financial statements. \n- 18 - \n \n$ \n \n16,118.82 \n \n53,904.41 \n \n$ _ _...;.7-=:c0=,0=23==23::.... \n \n$ \n \n7,679.12 \n \n5,501.00 \n \n0.00 $ _ _ _ _.:::.:0-~00::.... \n \n$ \n \n13,180.12 $ _ _ _ _.:::.:0-~00::.... \n \n$ \n \n83,203.35 $ \n \n0.00 \n \n EXHIBIT \"E\" \n \nFEDERAL \nPROGRAMS \n \nOTHER \nPROGRAMS \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n0.00 $ \n \n70,023.23 $ \n \n51,839.12 \n \n$ \n \n73,642.39 \n \n73,642.39 \n \n137,712.63 \n \n7,679.12 5,501.00 \n \n9,796.43 6 489.05 \n \n$ \n \n73,642.39 $ \n \n0.00 $ \n \n156,845.74 $ ======2=0=5\u0026,8~3,;,,;7-~23= \n \n$ \n \n9,429.94 \n \n12,989.59 \n \n46,293.38 \n \n4,929.48 - \n \n. $ _ _..,:7.;:;3=,6..:.:42:.:.3=.:9a.. \n \n$ \n \n9,429.94 $ \n \n24,229.50 \n \n29,108.41 \n \n26,726.34 \n \n100,197.79 \n \n102,268.92 \n \n4,929.48 \n \n50,000.00 \n \n$ \n \n143,665.62 $ _ __;2;;;.;0;.;:;3..z=,2=24..;.;.\"--76;;;.... \n \n_ $ \n \n3,033.27 \n \n$ \n \n7,679.12 \n \n5,501.00 \n \n9,796.43 6,489.05 \n \n$ \n \n0.00 $ _ _ _ _~0-:.::.0=-0 \n \n-16,706.28 \n \n0.00 \n \n0.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n13,180.12 $ ----=2..:::,6...:,.:12::.:,.4~7~ \n \n$ \n \n73,642.39 $ \n \n0.00 $ \n \n156,845.74 $....,.......:2:.;;o.5.._,8=37;..;.2;;,;3== \n \n--------------\" - \n \n- 19 - \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 \n \nREVENUES \nState Funds Federal Funds Other Funds \n. \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services  Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ . \n \n65,424.00 $ \n \n398,522.43 \n \n550,739.33 \n \n119,488.74 \n \n$ 1,014,685.76 $ _ _1.;...1;..;;.9..;4;.;;;.8=8.\"'-74\"\"- \n \n$ \n \n120,692.96 \n \n$ __1:.,.;0,:.;:6:.aa9.z.:,8~0.:..:1=-34.:- \n \n$ 1z069,801 .34 $ ___1:,::2~0'\"'-69::.:2:.:.:9::.;:6;,_ \n \n$ \n \n-55, 115.58 $ \n \n-1,204.22 \n \n71,821.86 \n \n$ \n \n16,706.28 $ \n \n-420.80 \n \n-2, 117.31 -988.05 \n \n1,204.22 \n0.00 0.00 \n \n$ \n \n13,180.12 $ \n \n0.00 \n \nSee notes to the general purpose financial statements. -20- \n \n EXHIBIT \"F\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n15,000.00 \n \n$ \n \n598,819.94 \n \n- - - - - - $ _ _-'6'-\"6\"-',6...;.6\"\"\"5..a..00\"'- \n \n$ \n \n613 819.94 $ \n \n66,665.00 $ \n \n199,912.74 $ 997,342.37 617,404.33 \n1,814,659.44 $ \n \n109,770.20 870,564.82 523,277.24 \n1 503,612.26 \n \n$ \n \n528,319.49 \n \n7,473.01 $ 63,000.57 \n6,380.24 \n \n227.59 11,396.00 \n965.60 \n \n$ \n \n617,762.50 $ \n \n$ \n \n-3,942.56 $ \n \n$ \n66,665.94 \n66,665.94 $ -0.94 $ \n \n649,012.45 $ \n74,138.95 63,000.57 \n6,380.24 \n227.59 11,396.00 \n965.60 1,069,801.34 \n1,874,922.74 $ \n-60,263.30 $ \n \n448,174.21 \n71,193.58 39,723.98 10,016.92 \n1,729.20 1,624.69 7,927.00 \n605.11 1,032,420.14 \n1,613,414.83 \n-109,802.57 \n \n909.29 \n \n$ \n \n-3,033.27 $ \n \n3,033.27 \n \n0.94 \n0.00 $ 0.00 \n \n73,936.31 \n \n15,344.12 \n \n13,673.01 $ 2,612.47 \n \n-94,458.45 101,305.30 \n \n-2,117.31 -988.05 \n \n-5,139.10 904.72 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n13,180.12 $ - - - - - -2,-6-12-.-47-- \n \n- 21 - \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND \nJUNE 30, 2000 \n \nASSETS Cash and Cash Equivalents Accounts Receivable \nTotal Assets \nLIABILITIES AND FUND EQUITY LIABILITIES \nCash Overdraft Accounts Payable Retainages Payable \nTotal Liabilities FUND EQUITY \nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated \n \nTotal Fund Equity \nTotal Liabilities and Fund Equity \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n0.00 $ 6,996,184.68 \n \n \n \n$ \n \n0.00 $ 6.996.184.68 \n \n$ \n \n5,302.52 \n \n$ -----=-5i=13.:,:02:.:..5::.:2=- \n \n$ 6,990,882.16 \n \n$ \n \n0.00 \n \n0.00 \n \n$ \n \n0.00 $ 6.990.882.16 \n \n$ \n \n0.00 $ 61996.184.68 \n \nSee notes to the general purpose financial statements. \n- 22- \n \n EXHIBIT \"G\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n11,110.11 $ 7,007,294.79 $ \n \n523,450.76 \n \n28,527.90 \n \n$ \n \n11110.11 $ 7,007,294.79 $ ===5=51=,9=78=.66= \n \n$ \n \n28,527.90 \n \n$ \n \n5,302.52 \n \n51,125.00 \n \n$ \n \n5,302.52 $ _ _ _7_9_,6_5__2_._90_ \n \n$ 6,990,882.16 $ \n \n428,567.84 \n \n$ \n \n11,110.11 \n \n11,110.11 \n \n43,757.92 \n \n0.00 \n \n0.00 \n \n0.00 \n \n$ \n \n11 110.11 $ 7,001,992.27 $ _ _4\"'-'7-\"'2\"'-\",3=25=--76;a.. \n \n$ \n \n11110.11 $ 7,007,294.79 $ ......-==5=5=1=,9=7=8-.-6=6= \n \n-23- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND \nYEAR ENDED JUNE 30. 2000 \n... \n \nREVENUES \nState Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Support Services Business Administration \nCapital Outlay Land and Land Improvements Building and Building Improvements Equipment \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nPremiums on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFUND BALANCE JUNE 30 \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n0.00 $ _ __:3:..=0.i..;4:.::.9.:...;7.=83=-- \n \n$ \n \n0.00 $ _ __:3:..=0.i..;,4:.::.9.:...;7.=83=-- \n \n$ \n \n142.00 $ \n \n76,639.36 \n \n1,700.00 \n \n$ \n \n142.00 $ _ _....:7.:::8.i.::,3:::.39:..:.::.;36::.... \n \n$ \n \n-142.00 $ _ _...;-4:.:.7.i.:8;.:.4.:.:1.::.;53::.... \n \n$ \n \n25,155.85 \n \n6,385,000.00 \n \n$ \n \n142.00 \n \n200,000.00 \n \n$ \n \n142.00 $ _....;6a.i.,6::;...;1'\"\"\"0...,1_,=55=.8=5'- \n \n$ \n \n0.00 $ 6,562,314.32 \n \n0.00 \n \n428,567.84 \n \n$ \n \n0.00 $ 6,990,882.16 \n \n \n \nSee notes to the general purpose financial statements. \n- 24- \n \n EXHIBIT \"H\" \n \n- \n \nSPECIAL PURPOSE LOCAL OPTION \nSALES TAX \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n285,279.00 \n \n$ \n \n25,386.26 $ ---'5\"-'-5\"'-\",8-'-84_.-',,09\"'- \n \n49,323.10 \n \n$ \n \n25,386.26 $ \n \n55,884.09 $ _ _3;;.;;3'-'4.L.a,6.a.02=.\"\"-1QC... \n \n$ \n \n76,781.36 \n \n$ \n \n22,902.40 \n \n35,131.67 \n \n1,700.00 22,902.40 $ 35,131.67 \n \n2,398,008.55 451111.34 \n \n$ \n \n58,034.07 $ \n \n136,515.43 $ 2,849,119.89 \n \n$ \n \n-32,647.81 $ \n \n-80,631.34 $ -2,514,517.79 \n \n$ \n \n25,155.85 \n \n6,385,000.00 200,142.00 $ \n \n1,474,902.43 -1,277 ,298.85 \n \n$ 6z61 Q,297.85 $ _ _1.:.,9::.:,7.6:::,.::,0,:.:3-~58:a... \n \n$ \n \n-32,647.81 $ 6,529,666.51 $ -2,316,914.21 \n \n43,757.92 \n \n472,325.76 \n \n2,789,239.97 \n \n$ \n \n11110.11 $ \n \n7,001,992.27 $ 472,325.76 -- -- \"\" --------- \n \n \n \n 25- \n \n DAWSON COUNTY BOARD OF EDUCATION \nCOMBINING BALANCE SHEET DEBT SERVICE FUND \nJUNE 30, 2000 \n. \n \nEXHIBIT \"I\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 1,767,087.69 $ 2,754,699.52 $ 4,521,787.21 $ 2,912,361.67 \n \n17 016.66 \n \n525,800.66 \n \n542,817.32 \n \n458,073.42 \n \nTotal Assets \n \n$ 1 784,104.35 $ 3,280,500.18 $ 5,064,604.53 $ 3,370,435.09 \n \nFUND EQUITY \nFund Balances Reserved For Debt Service Unreserved U ndesig nated \n \n$ 1,784,104.35 $ 3,280,500.18 $ \n \n0.00 \n \n_ _ _ _0.00 ;;.;.;:;,.;;.... \n \n5,064,604.53 $ \n0.00 \n \n3,370,435.09 0.00 \n \nTotal Fund Equity $ 1,784,104.35 $ 3,280,500.18 $ 5,064,604.53 $ 3,370,435.09 \n \nSee notes to the general purpose financial statements. \n- 26- \n \n DAWSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nDEBT SERVICE FUND YEAR ENDED JUNE 30. 2000 \n \nEXHIBIT \"J\" \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 \n \nREVENUES \nTaxes Other Funds \nTotal Revenues \n \n$ 444,406.73 $ 3,224,801.00 $ 3,669,207.73 $ 3,214,152.39 \n \n28,901.27 \n \n128,727.95 \n \n157,629.22 \n \n87,738.01 \n \n$  473,308.00 $ 3,353,528.95 $ 3,826,836.95 $ 3,301,890.40 \n \nEXPENDITURES \n \nDebt Service Principal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ $ _ _3=59::.,0:.:...1.:.::5:.... \n \n1,460,000.00 $ 673,747.50 \n \n1,460,000.00 $ 673,747.50 3,590.15 \n \n1,170,000.00 871,625.42 3,378.26 \n \n$ \n \n3,590.15 $ 2,133,747.50 $ 2,137,337.65 $ 2,045,003.68 \n \n$ 469,717.85 $ 1,219,781.45 $ 1,689,499.30 $ 1,256,886.72 \n \nOTHER FINANCING SOURCES \nAccrued Interest on Bonds Sold \n \n4 670.14 \n \n4 670.14 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures \n \n$ 469,717.85 $ 1,224,451.59 $ 1,694,169.44 $ 1,256,886.72 \n \nFUND BALANCE JULY 1 \n \n1,314,386.50 \n \n2,056,048.59 \n \n3,370,435.09 \n \n2,113,548.37 \n \nFUND BALANCE JUNE 30 \n \n$ 1,784.104.35 $ 3,280,500.18 $ 5,064,604.53 $ 3,370,435.09 \n \nSee notes to the general purpose financial statements. \n \n-27- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2000 \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 \n \nChild Nutrition Cluster \n \nPass-Through From Georgia Department of Education \n \nFood and Nutrition Program \n \nFood Services School Breakfast Program \n \n* 10.553 \n \nNational School Lunch Program \n \n* 10.555 \n \nTotal Child Nutrition Cluster \n \nN/A \n \n$ 87,967.40 \n \n(2) \n \nNIA \n \n270,876.99 $ 1,030,123.30 (3) \n \n$ 358,844.39 $ 1,030,123.30 \n \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) \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 \n \n10.550 \n84.173 84.027 84.173 \n \nN/A \n \n39,678.04 \n \n39,678.04 \n \n$ 398,522.43 $ _ ___:.1!.0:;.=,.;69:a.,.,8;:;.;0;.;.1.:;:.3c.:.4 \n \n \nN/A $ 2,925.00 $ \n \nNIA \n \n156,687.45 \n \nN/A \n \n15,778.00 \n \n$ 175,390.45 $ \n \n2,925.00 156,6!!7 .45 \n15,778.00 \n175,390.45 \n \nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction \nGoals 2000 \nTechnology Literacy Challenge Fund Grant Vocational Education - Basic Grants to States \nHigh School Program Basic Grant \nTotal U. S. Department of Education \n \n84.010 84.281 84.298 84.340 84.318 \n84.048 \n \nNIA \n \n244,072.20 \n \nN/A \n \n12,966.73 \n \nNIA \n \n12,537.00 \n \nN/A \n \n42,229.00 \n \nN/A \n \n93,631.56 \n \n244,072.20 16,000.00 12,537.00 43, 138.29 (3) \n93,631.56 \n \nN/A \n \n17,993.00 \n \n32;993.00 (3) \n \n$ 598,819.94 $ _ _~6.:..:17_:.;,7~6~2:.:::.5.:::_0 \n \nTotal Federal Financial Assistance \n \nNIA= Not Available \n \n$ 997,342.37 $ _=-1._6=87_;,56_,;;3;,;.84.;. \n \n-28- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"1\" \n \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 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. \nMajor Programs are identified by an asterisk(*) in front of the CFDA number. \nThe Board did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the. Dawson County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \n \nSee notes to the general purpose financial statements. \n \n-29- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"2\" \n \n., \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 Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Applied Technology Labs Assistive Technology Computers in the Classroom \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS \nEducation, Georgia Department of Georgia's Reading Challenge Program Reading First Program \nOTHER Education, Georgia Department of Reimbursement for Substitutes \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 5,977,115.00 \n842,230.00 142,440.00 253,332.00 64,509.00 1,526,821.00 \n336,263.00 106,280.00 206,597.00 255,627.00 70,266.00 481,520.00 \n28,092.00 28,842.00 -2, 171,400.00 \n$ 17,939.00 \n121,409.00 2,000.00 5,840.23 \n217,092.01 7,100.00 10,692.00 \n37,357.00 3,301.81 \n \n20,219.38 \n \n$ 5,977,115.00 \n842,230.00 142,440.00 253,332.00 \n64,509.00 1,526,821.00 \n \n65,424.00 15,000.00 \n \n336,263.00 106,280.00 206,597.00 255,627.00 70,266.00 481,520.00 28,092.00 28,842.00 -2, 171,400.00 \n65,424.00 32,939.00 \n \n121,409.00 2,000.00 5,840.23 \n217,092.01 7,100.00 10,692.00 \n37,357.00 3,301.81 \n20,219.38 \n \n50,000.00 12,639.74 56,849.00 \n \n50,000.00 12,639.74 56,849.00 \n \n42,206.00 \n \n42,206.00 \n \n45,000.00 25,317.00 \n \n45,000.00 25,317.00 \n \n90.00 _ _ _ _ _ \n \n90.00 \n \n$ 8,704,097.43 $ 199,912.74 $ 8,904,010.17 \n \nSee notes to the general purpose financial statements. \n \n-30- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE ?\" \n \nPROJECT \nPayment of principal and interest due on the 1993 and 1994 Bonds \nAcquisition, construction and equipping of a new elementary school and necessary furnishings and equipment, including the acquisition of all necessary property \nPayment of principal and interest due on the 1997A Bonds coming due October 1, 2002 through and including April 1,2006 \nThe acquisition, construction and equipping of two new elementary schools, one new middle school and necessary furnishings and equipment, including the acquisition of all necessary property \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS \n \n$ 3,500,000.00 $ 3,500,000.00 $ 1,113,747.50 $1,691,297.31 \n \n6,809,000.00 \n \n6,809,000.00 \n \n58,034.07 6,512,274.16 \n \n1,265,000.00 \n \n1,265,000.00 \n \n0.00 \n \n0.00 \n \n20,535,000.00 20,535,000.00 \n \n1,700.00 \n \n0.00 \n \n$ 32,109,000.00 $ 32,109,000.00 $ 1,173,481.57 $ 8,203,571.47 \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 Dawson 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 taxes and/or other funds over the life of the projects. \n(4) The debt for the 1994 Series Bond Issue was retired through the sale of the 1997A Refunding Bond Issue. The Board will utilize the SPLOST proceeds budgeted for this project to retire a portion of the 1997A Refunding Bond Issue. \n \nSee notes to the general purpose financial statements. \n \n- 31 - \n \n DAWSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"4\" \n \nMinimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis \nSalaries Operations \nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \nExpenditures per Audit \nAmount of Underexpenditure for Total Allotment \n \nFOURTEEN WEIGHTED AND MEDIA CENTER \nPROGRAMS \n \n100/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \n \n$ \n \n7,696,638.00 $ - - -2-00-,93-0.0-0 \n \n$ \n \n8,525,028.73 \n \n654,028.92 $ _ _ _5.;._3_6..:..;,3...;.o_2._1o_ \n \n$ \n \n9,179,057.65 \n \n-166,587.96 $ _ _ _9..:...,0_1_2.,_,4_6_9._69_ \n \n$ \n \no.oo $ ========o..o..o= \n \n, \n \nSee notes to the general purpose financial statements. \n- 33 - \n \n DAWSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM \nGENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \n \nGENERAL AND CAREER EDUCATION PROGRAMS \nKindergarten (*) \nGrades 1 - 3 (*) Sub-Total K-3 \nGrades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) \nTotal General and Career Education Programs \nSPECIAL EDUCATION PROGRAMS \nRegular Programs Category I (*) Category II (*) Category 111 (*) Category IV (*) Category V (*) Sub-Total  Regular Category VI (Gifted) (*) Total Special Education Programs \nREMEDIAL EDUCATION PROGRAM (*l Total Fourteen Weighted Programs \nMEDIA CENTER PROGRAMS \nSalaries Operations \nTotal Media Center Programs \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF \n \nREQUIRED \n \nORIGINAL \n \n% \n \nORIGINAL \n \nMID-TERM \n \n$ \n \n771,105.00 \n \n1,809,366.00 \n \n$ \n \n693,994.50 \n \n___ __ 1,628,429.40 $ \n \n249_,9_77.65 \n \n$ 2,580,471.00 90 $ 2,322,423.90 $ \n \n837,676.00 90 \n \n753,908.40 \n \n1,257,205.00 90 \n \n1,131,484.50 \n \n249,977.65 206,301.74 \n98,665.61 \n \n819,194.00 90 \n \n737,274.60 \n \n187,752.00 90 \n \n168,976.80 \n \n294,817.00 90 \n \n265,335.30 \n \n$ 5,977,115.00 \n \n$ 5,379,403.50 $ _---'5;..a.54..;.:..;;..94'\"\"5\"\".0..;;..0 \n \n$ \n \n766,386.00 \n \n$ \n \n689,747.40 $ \n \n0.00 \n \n$ \n \n766,386.00 90 $ \n \n689,747.40 $ \n \n0.00 \n \n75,845.00 90 \n \n68,260.50 \n \n$ \n \n842,231.00 \n \n$ \n \n758,007.90 $ _ _ __..;;;.O;..;;;.O..;;..O \n \n$ \n \n142,440.00 90 $ \n \n128,196.00 $ ---\"-7'3\",4-25'.-00- \n \n$ 6,961,786.00 \n \ns_ _ $ s.2ss,so7.40 \n \n4'\"\"e..;.:1.\"\"'s2;;.;;o..;.;;.o..;;..o \n \n$ \n \n205,244.00 90 $ \n \n184,719.60 $ \n \n0.00 \n \n48,088.00 100 \n \n48,088.00 \n \n$ \n \n253,332.00 \n \n$ \n \ns_ _ _ 232,807.60 \n \n---\"o\"\"'.o\"'\"o \n \nTotal Fourteen Weighted and Media Center Programs $ 7,215,118.00 \n \n$ 6,498,415.00 $ \n \n481,520.00 \n \nSTAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development \nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. \n \n$ \n \n20,960.00 \n \n$ \n \n20,960.00 $ \n \n0.00 \n \n43,549.00 \n \n43,549.00 \n \n0.00 \n \n$ \n \n64,509.00 \n \n-- - - - - - - \n \n.- - \n \n100 $ \n \n64,509.00 $ ======O=.O=O \n \n- 34 - \n \n SCHEDULE \"5\" \n \nEDUCATION TOTAL \nREQUIRED \n \nACTUAL EXPENDITURES \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nAMOUNT OF UNDEREXPENDITURE \nFOR REQUIRED ALLOTMENT \n \n$ \n \n693,994.50 $ \n \n819,006.21 $ \n \n59,176.32 $ \n \n878,182.53 \n \n1,878,407.05 \n \n2,015,770.65 \n \n142,238.61 \n \n2,158,009.26 \n \n$ 2,572,401.55 $ 2,834,776.86 $ \n \n201,414.93 $ 3,036,191.79 $ \n \n0.00 \n \n960,210.14 \n \n1,108,117.53 \n \n73,156.21 \n \n1,181,273.74 \n \n0.00 \n \n1,230,150.11 \n \n1,377,109.27 \n \n87,373.83 \n \n1,464,483.10 \n \n0.00 \n \n737,274.60 \n \n980,462.39 \n \n83,249.23 \n \n1,063,711.62 \n \n0.00 \n \n168,976.80 \n \n354,429.07 \n \n22,979.90 \n \n377,408.97 \n \n0.00 \n \n265,335.30 \n \n420,505.91 \n \n47,288.25 \n \n467,794.16 \n \n0.00 \n \n$ 5,934,348.50 $ 7,075,401.03 $ \n \n515,462.35 $ 7,590,863.38 \n \n$ \n \n689,747.40 \n \n$ \n \n16,515.42 121,228.68 $ 733,736.72 \n38,978.00 7,805.78 \n \n$ 155.90 15,543.40 457.45 1,101.00 \n \n16,515.42 121,384.58 749,280.12 39,435.45 \n8,906.78 \n \n$ \n \n689,747.40 $ \n \n918,264.60 $ \n \n17,257.75 $ \n \n935,522.35 \n \n0.00 \n \n68,260.50 \n \n101,748.04 \n \n1,675.00 \n \n103,423.04 \n \n0.00 \n \n$ \n \n758,007.90 $ \n \n1,020,012.64 $ \n \n18,932.75 $ 1,038,945.39 \n \n$ \n \n54,771.00 $ \n \n127,421.92 $ \n \n1,907.00 $ _ _1=2=9=32\"\"'8-\"\".9=-2 \n \n0.00 \n \n$ 6,747,127.40 $ \n \n8,222,835.59 $ \n \n536,302.10 $ 8,759,137.69 \n \n$ \n \n184,719.60 $ \n \n302,193.14 \n \n$ \n \n302,193.14 \n \n0.00 \n \n48,088.00 \n \n$ _ _1.:...;1~7!;..,72::6~.8=2 \n \n117,726.82 \n \n0.00 \n \n$ \n \n232,807.60 $ \n \n302,193.14 $ - 117,726.82 $ _ _4..;1.a.9':.a.9..;19..;.96;.;. \n \n$ 6,979,935.00 $ \n \n8,525,028.73 $ \n \n654,028.92 $ 9,179,057.65 $=========0=0=0 \n \n$ \n \n20,960.00 \n \n43,549.00 \n \n$ \n \n64,509.00 \n \n$ \n \n19,635.69 $ \n \n19,635.69 \n \n44,873.31 \n \n44,873.31 \n \n$ \n \n64,509.00 $ \n \n64,509.00 $ \n \n0.00 \n \n., ------------- \n \n- ------------ \n \n- 35 - \n \n - \n \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n \n RussELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nJune 1, 2001 \n \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dawson 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 Dawson County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated June 1, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Dawson County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete11nination 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 perfu11ning our audit, we considered Dawson County Board ofEducation's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2000YB-40A \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 Dawson 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-6421-00-01. \n \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 no1mal course of perforrning 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 \nweakness. \n \nThis report is intended solely for the inforrnation and use ofmanagement, members ofthe Dawson 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 \n- -Respectfully submitted, \n \n \n \nRWH:gp \n2000YB-40A \n \nell W. Hinton State Auditor \n \n w. RUSSELL HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nJune 1, 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 Dawson County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dawson County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Si,pplementthatare applicable to each ofitsmajorFederalprograms for the year ended June 30, 2000. Dawson County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofDawson County Board ofEducation's management. Our responsibility is to express an opinion on Dawson County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, 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 Dawson 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 Dawson County Board of Education's compliance with those requirements. \n2000SA-10A \n \n In our opinion, the Dawson County Board of Education complied, in all material respects, with the require, r1ents 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 Dawson County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, \ncontracts and grants applicable to Federal programs. In planning and performing our audit, we \nconsidered Dawson County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one 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 norrnal 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 infor111ation and use of management, members ofthe Dawson County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \n \nRWH:gp \n2000SA-10A \n \nRussell W. Hinton State Auditor \n \n  \nSECTION ill \nAUDfl'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DAWSON COUNTY BOARD OF EDUCATION \n \nAUDITEE'S RESPONSE \n \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n_. \n \nYEAR ENDED JUNE 30, 2000 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6421-98-02 FS-6421-99-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6421-99-01 \n \nThe administration does not have the funds nor the staff resources to manage the general fixed assets of the local Board of Education, however, studies are being conducted as to the feasibility of securing the staff and funds required to make these assets part of our financial statements. \n \n \n \n  \nSECTIONN FINDINGS AND QUESTIONED COSTS \n \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEI1;__JLE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n. \n \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dawson County Board ofEducation'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 Dawson County Board ofEducation 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 of the Dawson County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dawson County Board ofEducation 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 Dawson County Board of Education'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 Dawson County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \n8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00. \n9. Low Risk Auditee The Dawson County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n- 1- \n \n DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6421-00-01 The Dawson County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo1mal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS  No matters were reported. \n \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. 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