{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2007-h2008","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, 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, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2008-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with: Fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga--fast","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Chickamauga--fast","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n23 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n24 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n25 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n26 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n27 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 30, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Chickamauga Board ofEducation, a component unit ofthe City ofChickamauga, Georgia as ofand for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Chickamauga Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe City of Chickamauga Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\n \r\n2008ARL-11 \r\n \r\n In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education, as of June 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nThe City of Chickamauga 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 30, 2009, on our consideration of the City of Chickamauga Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 23, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City ofChickamauga Board ofEducation's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n~ tJ. ~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2008ARL-l l \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET ASSETS JUNE 30, 2008 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets Restricted for \r\nContinuation of Federal Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n787,210.69 \r\n \r\n4,511,665.74 \r\n \r\n9,999.53 139,103.60 1,109,706.80 63,589.72 26,619.58 \r\n21,771.19 403,480.35 8,292,258.36 \r\n \r\n$ ==1=5,=3=65...,.4=0=5=.5===6 \r\n \r\n$ \r\n \r\n21,652.07 \r\n \r\n1,063,895.51 \r\n \r\n5,354.55 \r\n \r\n221,049.81 \r\n \r\n24,079.50 \r\n \r\n24 778.00 \r\n \r\n$ \r\n \r\n1,360,809.44 \r\n \r\n$ \r\n \r\n8,695,738.71 \r\n \r\n226,773.38 3,474,801.77 1,607,282.26 \r\n \r\n$ \r\n \r\n14,004,596.12 \r\n \r\n$ ===1=5,=36=5=,4=0=5=56= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2008 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Transfers to City Government \r\nTotal General Revenues and Special Items \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n6,942,962.13 $ \r\n \r\n403,131.00 183,734.51 187,081.01 520,632.60 738,680.15 137,288.67 995,052.71 \r\n98,380.98 8,480.59 \r\n \r\n51,695.48 576,792.82 \r\n \r\n$ 10,843,912.65 $ \r\n \r\n556,794.36 \r\n431 198.79 987,993.15 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n5,238,993.45 $ \r\n \r\n160,676.43 160,338.91 162,222.97 296,181.81 436,820.72 85,325.52 408,574.21 \r\n260.75 125.55 \r\n \r\n1,304.50 162,785.54 \r\n \r\n$ \r\n \r\n7,113,610.36 $ \r\n \r\n167,981.46 $ \r\n6,430.93 447.67 \r\n23,513.44 3,984.75 \r\n9,868.60 212,226.85 $ \r\n \r\n-979,192.86 \r\n-242,454.57 -23,395.60 -24,858.04 \r\n-218,019.86 -301,411.76 \r\n-51,963.15 -562,965.06 -98,120.23 \r\n-4,370.29 \r\n-50,390.98 27,060.11 \r\n-2,530,082.29 \r\n \r\n$ \r\n \r\n1,110,050.03 \r\n \r\n738,268.07 721,056.00 200,298.05 821,753.57 \r\n \r\n-679,938.00 \r\n \r\n$ \r\n \r\n2,911,487.72 \r\n \r\n$ \r\n \r\n381,405.43 \r\n \r\n13,623,190.69 \r\n \r\n$ ===1=4=,0=04=,5=9=6=12= \r\n \r\n-3- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2008 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government lnterfund Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 718,147.32 $ 69,063.37 $ 1,183,116.63 3,328,549.11 \r\n \r\n9,999.53 75,973.02 897,479.95 63,589.72 3,561.51 26,619.58 21 771.19 \r\n \r\n121,556.73 212,226.85 \r\n \r\n787,210.69 4,511,665.74 \r\n9,999.53 197,529.75 1,109,706.80 63,589.72 \r\n3,561.51 26,619.58 21 771.19 \r\n \r\nTotal Assets \r\n \r\n$ 3,000,258.45 $ 3,731,396.06 $===6,,..7=31..,,6=5=4-=5=1 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable lnterfund Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Inventories Capital Projects \r\nUnreserved Designated for Student Activities Undesignated for General Fund \r\nTotal Fund Balances \r\n \r\n$ \r\n \r\n13,748.60 $ \r\n \r\n1,063,895.51 5,354.55 \r\n \r\n24,778.00 $ 1,107,776.66 $ \r\n \r\n7,903.47 $ 3,561.51 \r\n221,049.81 24,079.50 \r\n256,594.29 $ \r\n \r\n21,652.07 3,561.51 \r\n1,063,895.51 5,354.55 \r\n221,049.81 24,079.50 24 778.00 \r\n1,364,370.95 \r\n \r\n$ 205,002.19 \r\n \r\n$ \r\n \r\n21,771.19 \r\n \r\n$ 3,474,801.77 \r\n \r\n107,558.60 1,558,149.81 \r\n \r\n$ 1,892,481.79 $ 3,474,801.77 $ \r\n \r\n205,002.19 21,771.19 \r\n3,474,801.77 \r\n107,558.60 1,558,149.81 \r\n5,367,283.56 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 3,000,258.45 $ 3,731,396.06 $===6'=,7=31=,6=5=4=.5=1 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\n \r\n$ 5,367,283.56 \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n305,136.42 \r\n \r\n345,211.40 \r\n \r\n9,457,615.60 \r\n \r\n1,364,712.48 \r\n \r\n-2,875,281.12 \r\n \r\n8,695,738.71 \r\n \r\n-58,426.15 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 14,004,596.12 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nTransfers Out \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,170,684.60 \r\n \r\n$ 1,170,684.60 \r\n \r\n$ 738,268.07 \r\n \r\n738,268.07 \r\n \r\n7,436,692.51 \r\n \r\n212,226.85 \r\n \r\n7,648,919.36 \r\n \r\n397,973.84 \r\n \r\n397,973.84 \r\n \r\n987,993.15 \r\n \r\n987,993.15 \r\n \r\n61,415.66 \r\n \r\n138,882.39 \r\n \r\n200,298.05 \r\n \r\n821,403.57 \r\n \r\n350.00 \r\n \r\n821,753.57 \r\n \r\n$ 10,876,163.33 $ 1,089,727.31 $ 11,965,890.64 \r\n \r\n$ 6,789,276.05 $ 98,462.10 $ 6,887,738.15 \r\n \r\n403,131.00 183,734.51 192,373.01 509,614.99 738,112.52 136,967.29 947,887.86 \r\n59,012.73 3,428.05 \r\n51,695.48 558,453.75 \r\n1 000.00 \r\n \r\n2,863.39 321.38 \r\n51,820.71 \r\n18,132.30 641,336.92 \r\n \r\n403,131.00 183,734.51 192,373.01 512,478.38 738,112.52 137,288.67 999,708.57 \r\n59,012.73 3,428.05 \r\n51,695.48 576,586.05 642,336.92 \r\n \r\n$ 10,574,687.24 $ 812,936.80 $ 11,387,624.04 \r\n \r\n$ 301,476.09 $ 276,790.51 $ 578,266.60 \r\n \r\n-679,938.00 \r\n \r\n-679,938.00 \r\n \r\n$ 301,476.09 $ -403,147.49 $ -101,671.40 \r\n \r\n1,591,005.70 3,877,949.26 \r\n \r\n5,468,954.96 \r\n \r\n$ 1,892,481.79 $ 3,474,801.77 $ 5,367,283.56 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\n \r\n$ -101,671.40 \r\n \r\n$ 808,885.18 -265,173.78 \r\n \r\n543,711.40 -60,634.57 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 381,405.43 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n$ 31,148.77 \r\n$ 31,148.77 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofChickamauga Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City ofChickamauga Board ofEducation is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements ofthe City of Chickamauga Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\n-9- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \r\n \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City ofChickamauga fixed the property tax levy for the 2007 tax digest year (calendar year) on October 1, 2007 (levy date). Taxes were due on December 20, 2007 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax digest are reported as revenue in the governmental funds for fiscal year 2008. The Chickamauga City Clerk bills and collects the property taxes for the School District and remits 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 $1,170,684.60. \r\n \r\nThe tax millage rate levied for the 2007 tax year (calendar year) for the City ofChickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n10.25 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $738,268.07 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance ofSpecial Purpose Local Option Sales Tax (SPLOST). In fiscal year 2008, the School District provided $679,938.00 ofSPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 \r\n \r\nNIA 15 to 80 years 15 to 80 years 5 to 25 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nNET ASSETS \r\n \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation ofFederal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $2,395,313.14. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\nCategory I - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\nI \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n2,093,120.05 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 2,093,120.05 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2008, the carrying value of the School District's total investments was $3,328,549.11, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund I, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office ofTreasury and Fiscal Services for the Georgia Fund I (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund I is disclosed in the State ofGeorgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits. state.ga.us/internet/searchRpts.html. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2007 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2008 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 98,343.93 \r\n \r\n$ 98,343.93 \r\n \r\n87,500.00 $ 381,436.42 $ 163,800.00 305,136.42 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 185,843.93 $ 381,436.42 $ 163,800.00 $ 403,480.35 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 9,163,513.05 $ 294,102.55 1,186,592.10 186,605.38 $ 234,670.57 110,540.83 \r\n \r\n$ 9,457,615.60 8,485.00 1,364,712.48 \r\n345,211.40 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n1,837,458.91 608,833.19 172,300.24 \r\n \r\n158,523.47 97,393.59 \r\n9,256.72 \r\n \r\n8,485.00 \r\n \r\n1,995,982.38 697,741.78 181,556.96 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 7,966,183.38 $ 326,074.98 $ \r\n \r\n0.00 $ 8,292,258.36 \r\n \r\nGovernmental Activity Capital Assets - Net $ 8,152,021.31 $ 1{l7i51 l.4Q $ 163,8QQ,QQ $ 8,695,138,11 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation ofPlant Student Transportation Services Other Support Services Food Services \r\n \r\n$ 171,095.63 \r\n \r\n$ 8,035.34 559.35 \r\n29,379.64 38,794.30 \r\n4,978.88 \r\n \r\n81,747.51 12,330.64 \r\n \r\n$ 265,173.78 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement ofNet Assets because their use is limited by statutory provisions. Restricted assets at June 30, 2008, were as follows: \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Capital Acquisitions \r\n \r\n$ 5,193.09 $ 63,870.28 $ 1,046,050.13 $ 2,282,498.98 \r\n \r\nNote 7: INTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2008, consisted of the following: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nGeneral Fund District-wide Capital Projects \r\n \r\n$ 3,561.51 $ 3,561.51 \r\n \r\n$ 3,561.51 $ 3.561,51 \r\n \r\nTransfers are used to repay the General Fund for invoices paid incorrectly. \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 8: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2008, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nCity of Chickamauga \r\n \r\n$ 679,938.00 \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance ofSpecial Purpose Local Option Sales Tax (SPLOST). In fiscal year 2008, the School District provided $679,938.00 ofSPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\nNote 9: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The City of Chickamauga has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver Education School Each Employee \r\n \r\n$ 10,000.00 $ 2,500.00 $ 10,000.00 \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $163,339.56 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $158,878.55 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $3,645.01 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $816.00 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n09/08S-769-070 \r\n \r\n$ 108,810.69 $ 75,837.15 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\n \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 13: POSTEMPLOYMENTBENEFITS \r\n \r\nGeorgia Retiree Health Benefit Fund \r\n \r\nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \r\n \r\nTeachers Non-Certificated Employees \r\n \r\n18.534% of state-based salaries $162.72 per month \r\n \r\nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $913,892.39, which equaled the required contribution. \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\n- 20- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2008 2007 2006 \r\n \r\n100% 100% 100% \r\n \r\n$ 514,663.55 $ 485,502.32 $ 449,609.14 \r\n \r\n- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ 1,100,000.00 $ 1,100,000.00 $ 1,170,684.60 \r\n \r\n7,006,922.00 \r\n \r\n7,236,567.00 \r\n \r\n7,436,692.51 \r\n \r\n397,541.00 \r\n \r\n405,219.00 \r\n \r\n397,973.84 \r\n \r\n979,264.00 \r\n \r\n987,964.00 \r\n \r\n987,993.15 \r\n \r\n45,100.00 \r\n \r\n74,400.00 \r\n \r\n61,415.66 \r\n \r\n842,132.00 \r\n \r\n932,032.00 \r\n \r\n821,403.57 \r\n \r\n$ 10,370,959.00 $ 1o,736, 182.00 $ 10,876,163.33 \r\n \r\n$ 6,551,629.02 $ 6,695,860.85 $ 6,789,276.05 \r\n \r\n443,632.91 173,799.93 184,676.20 487,354.08 769,914.86 141,762.49 735,295.48 113,050.00 \r\n4,000.00 55,000.00 585,000.00 \r\n \r\n444,657.89 193,099.62 191,503.18 534,809.96 766,432.60 145,966.49 982,595.97 120,650.00 \r\n3,900.00 55,000.00 602,500.00 \r\n \r\n403,131.00 183,734.51 192,373.01 509,614.99 738,112.52 136,967.29 947,887.86 59,012.73 \r\n3,428.05 51,695.48 558,453.75 \r\n1 000.00 \r\n \r\n$ 10,245,114.97 $ 1o,736,976.56 $ 10,574,687.24 \r\n \r\n$ \r\n \r\n125,844.03 $ \r\n \r\n-794.56 $ \r\n \r\n301,476.09 \r\n \r\n1,591,005.70 \r\n \r\n1,591,005.70 \r\n \r\n1,591,005.70 \r\n \r\n6 418.34 \r\n \r\n8,356.23 \r\n \r\nFund Balances - Ending \r\n \r\n$ 1,723,268.07 $ 1,598,567.37 $ 1,892,481.79 \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U. S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nNIA N/A $ \r\n$ \r\n \r\n(2) 513,098.40 \r\n513,098.40 \r\n \r\n10.550 \r\n \r\nN/A \r\n$ \r\n \r\n18,669.35 531,767.75 \r\n \r\n84.027 84.173 \r\n \r\nNIA $ NIA \r\n$ \r\n \r\n175,418.00 3,897.00 \r\n179,315.00 \r\n \r\n84.048 84.365 84.367 84.298 84.010 \r\n \r\nNIA NIA N/A NIA N/A \r\n$ \r\n \r\n2,271.00 336.00 \r\n37,227.00 1,130.00 \r\n41,595.30 \r\n261,874.30 \r\n \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \r\n \r\n$==1..,9.3..,.6..4..2...0...5.. \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the fund earned on School Breakfast Program ($18,304.11) were not maintained separately and are included in the 2008 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n-24- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nGRANTS \r\n \r\nEducation, Georgia Department of \r\n \r\nQuality Basic Education \r\n \r\nDirect Instructional Cost \r\n \r\nKindergarten Program \r\n \r\n$ 356,116.00 \r\n \r\n$ \r\n \r\nKindergarten Program - Early Intervention Program \r\n \r\n18,520.00 \r\n \r\nPrimary Grades (1-3) Program \r\n \r\n922,670.00 \r\n \r\nPrimary Grades - Early Intervention (1-3) Program \r\n \r\n82,554.00 \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\n462,054.00 \r\n \r\nUpper Elementary Grades - Early Intervention (4-5) Program \r\n \r\n34,563.00 \r\n \r\nMiddle School (6-8) Program \r\n \r\n1,008,784.00 \r\n \r\nHigh School General Education (9-12) Program \r\n \r\n875,978.00 \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\n311,463.00 \r\n \r\nStudents with Disabilities \r\n \r\n433,392.00 \r\n \r\nGifted Student - Category VI \r\n \r\n288,098.00 \r\n \r\nRemedial Education Program \r\n \r\n76,175.00 \r\n \r\nAlternative Education Program \r\n \r\n80,285.00 \r\n \r\nMedia Center Program \r\n \r\n145,943.00 \r\n \r\n20 Days Additional Instruction \r\n \r\n47,776.00 \r\n \r\nStaff and Professional Development \r\n \r\n26,542.00 \r\n \r\nIndirect Cost \r\n \r\nCentral Administration \r\n \r\n349,318.00 \r\n \r\nSchool Administration \r\n \r\n379,597.00 \r\n \r\nFacility Maintenance and Operations \r\n \r\n370,653.00 \r\n \r\nCategorical Grants \r\n \r\nSparsity \r\n \r\n20,000.00 \r\n \r\nNursing Services \r\n \r\n41,928.00 \r\n \r\nVocational Supervisors \r\n \r\n7,844.64 \r\n \r\nEducation Equalization Funding Grant \r\n \r\n721,056.00 \r\n \r\nFood Services \r\n \r\n26,686.00 \r\n \r\nVocational Education \r\n \r\n18,219.00 \r\n \r\nAmended Formula Adjustment \r\n \r\n-112,976.00 \r\n \r\nOther State Programs \r\n \r\nGraduation Coaches \r\n \r\n84,192.00 \r\n \r\nHealth Insurance \r\n \r\n158,878.55 \r\n \r\nNational Teacher Certification \r\n \r\n48,425.00 \r\n \r\nPreschool Handicapped Program \r\n \r\n11,073.00 \r\n \r\nRemedial Summer Middle School \r\n \r\n1,142.00 \r\n \r\nSpecial Education Low Incidence Grant \r\n \r\n5,216.00 \r\n \r\nTeachers' Retirement \r\n \r\n3,645.01 \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\n$ 212,226.85 \r\n \r\nGovernor's Office of Highway Safety Drivers Education Grant \r\n \r\n130,066.31 \r\n \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\n816.00 \r\n \r\nTOTAL \r\n356,116.00 18,520.00 \r\n922,670.00 82,554.00 462,054.00 34,563.00 1,008,784.00 875,978.00 311,463.00 433,392.00 288,098.00 76,175.00 80,285.00 145,943.00 47,776.00 26,542.00 \r\n349,318.00 379,597.00 370,653.00 \r\n20,000.00 41,928.00 \r\n7,844.64 721,056.00 \r\n26,686.00 18,219.00 -112,976.00 \r\n84,192.00 158,878.55 48,425.00 \r\n11,073.00 1,142.00 5,216.00 3,645.01 \r\n212,226.85 \r\n130,066.31 \r\n816.00 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nConstruction and equipping additional instructional space at Chickamauga Elementary School; Constructing, modifying, renovating and equipping Gordon Lee Middle School; Modifying and upgrading HVAC at WareJewell Activities Building at Gordon Lee High School; Constructing new physical education and athletic facilities at Gordon Lee High School; and acquiring, constructing, repairing, improving, retrofitting, upgrading, and equipping other building and facilities useful or desirable in connection therewith, including acquiring any necessary property therefore, both real and personal. \r\nConstruction of additions, renovations and improvements to Gordon Lee High School, Gordon Lee Middle School and Chickamauga Elementary School, including the upgrading and expansion of technology and equipment; Construction of additions, renovations and improvements to various athletic facilities and sites; System-wide security and safety improvements and HVAC upgrades; Acquisition of new school buses, textbooks, desks, rolling science labs and driver education simulators; Upgrading and equipping cafeterias; and acquisition, construction, improvement, repair and equipping of facilities, including acquisition of any necessary property therefore, both real and personal. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEAR (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\n$ 3,575,000.00 $ 3,575,000.00 $ 242,642.89 $ 2,488,721.04 Ongoing \r\n \r\n4,244,857.00 4,244,857.00 \r\n \r\n570,293.91 \r\n \r\n457,715.49 Ongoing \r\n \r\n$ 7,819,857.00 $ 7,819,857.00 $ 812,936.80 $ 2,946,436.53 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of the City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\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: \r\n \r\nPrior Years \r\n \r\n$ 388,653.03 \r\n \r\nCurrent Year \r\n \r\n119,438.00 \r\n \r\nTotal \r\n \r\n$ 508,091.03 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 26 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES OPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory Ill \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n382,582.00 $ \r\n20,024.00 990,102.00 \r\n91,241.00 499,752.00 \r\n \r\n336,300.81 $ \r\n19,274.83 957,761.86 102,900.12 459,596.13 \r\n \r\n36,403.00 1,089,965.00 \r\n950,367.00 344,553.00 453,848.00 \r\n308,199.00 76,246.00 87,612.00 \r\n \r\n30,545.46 1,186,929.31 1,157,434.10 \r\n318,712.70 \r\n334,030.16 297,942.48 \r\n74,529.27 45,412.12 \r\n2,928.33 \r\n \r\n10,661.91 $ \r\n93.77 46,094.64 \r\n803.58 22,099.59 \r\n \r\n346,962.72 19,368.60 \r\n1,003,856.50 103,703.70 481,695.72 \r\n \r\n191.00 51,030.25 46,634.66 26,274.41 \r\n \r\n30,736.46 1,237,959.56 1,204,068.76 \r\n344,987.11 \r\n \r\n10,849.15 4,337.99 700.76 885.71 \r\n \r\n344,879.31 302,280.47 \r\n75,230.03 46,297.83 \r\n2,928.33 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n5,330,894.00 $ 5,324,297.68 $ 220,657.42 $ 5,544,955.10 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n157,493.00 28 872.00 \r\n \r\n166,112.58 \r\n \r\n18,418.83 29 104.87 \r\n \r\n184,531.41 29 104.87 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n5,517,259.00 $ 5,490,410.26 $ 268,181.12 $ 5,758,591.38 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 30, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofCity ofChickamauga Board ofEducation as ofand for the year ended June 30, 2008, which collectively comprise City of Chickamauga Board ofEducation's basic financial statements and have issued our report thereon dated March 30, 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose ofexpressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe City of Chickamauga Board of Education's internal control over financial reporting. \r\nA control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the City of Chickamauga Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally \r\n2008YB-10 \r\n \r\n accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City of Chickamauga Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the City ofChickamauga Board ofEducation's internal control. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the City of Chickamauga Board of Education's internal control. \r\nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City ofChickamauga Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nThis report is intended solely for the information and use of management, members of the City of Chickamauga Board of Education, others within the entity, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2008YB-10 \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 30, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of City of Chickamauga 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. City of Chickamauga Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofCity ofChickamauga Board of Education's management. Our responsibility is to express an opinion on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Chickamauga Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements. \r\n2008SA-10 \r\n \r\n In our opinion, the City ofChickamauga Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2008. \r\nInternal Control Over Compliance \r\nThe management of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over compliance. \r\nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \r\nOur consideration ofthe internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\nThis report is intended solely for the information and use of management, members of the City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~ tJ . :t1::t;. \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp \r\n2008SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofChickamauga Board ofEducation's financial statements was unqualified. \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the City of Chickamauga Board of Education did not disclose any significant deficiencies related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Chickamauga Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the City of Chickamauga Board of Education did not disclose any significant deficiencies in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City of Chickamauga Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .5 IO(a) of 0MB Circular A-133 The City ofChickamauga Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The City of Chickamauga Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2006-h2007","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, 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, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2007-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with: Fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga--fast","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Chickamauga--fast","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION A COMPONENT UNIT OF THE \r\nCITY OF CHICKAMAUGA, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n21 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n22 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n23 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n24 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n25 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 11, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Chickamauga Board ofEducation, a component unit ofthe City ofChickamauga, Georgia as ofand for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Chickamauga Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe City of Chickamauga Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\n \r\n2007ARL-11 \r\n \r\n In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nThe City of Chickamauga 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 11, 2008, on our consideration ofthe City of Chickamauga 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 of that report is to describe the scope ofour testing ofinternal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 21, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City ofChickamauga Board ofEducation's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n~~AL~~ \r\n~uJsell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2007ARL-11 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET ASSETS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenues \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Fe~eral Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n927,472.08 \r\n \r\n4,401,423.57 \r\n \r\n11,685.92 201,590.11 844,320.86 \r\n50,549.77 35,271.72 13,414.96 \r\n \r\n98,343.93 87,500.00 234,670.57 9,163,513.05 1,186,592.10 -2,618,592.34 \r\n \r\n$ ==1=4,=63=7=7' =5=6=.3=0 \r\n \r\n$ \r\n \r\n2,501.40 \r\n \r\n1,012,062.32 \r\n \r\n1.89 \r\n \r\n$ \r\n \r\n1,014,565.61 \r\n \r\n$ \r\n \r\n8,152,027.31 \r\n \r\n187,719.71 3,877,949.26 1,405,494.41 \r\n \r\n$ 13,623,190.69 \r\n \r\n$ =====1=4'=63=7=,7=5=6=.3=0 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n- 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\nTotal Governmental Activities \r\nGeneral Revenues and Special Items Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Proceeds from Sale of Bonds by City Transfers to City Government \r\nTotal General Revenues and Special Items \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 6,718,101.30 $ \r\n332,993.87 130,318.95 178,278.86 466,575.65 757,321.49 192,198.98 706,565.17 103,695.33 \r\n14,525.24 \r\n48,017.77 526,470.46 \r\n$ 10,175,063.07 $ \r\n \r\n552,956.19 \r\n431 715.28 984 671.47 \r\n \r\nNet Assets - End of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n4,910,555.79 $ \r\n \r\n187,807.51 115,942.89 151,953.72 259,671.21 382,270.67 93,125.28 387,253.89 \r\n2,937.70 \r\n \r\n1,072.61 129,967.54 \r\n \r\n$ \r\n \r\n6,622,558.81 $ \r\n \r\n6.53 $ \r\n0.22 0.02 0.98 50,001.37 0.38 \r\n0.50 50,010.00 $ \r\n \r\n-1,254,582.79 \r\n-145,186.36 -14,376.06 -26,325.14 \r\n-206,904.22 -375,050.80 \r\n-99,073.70 -319,310.30 \r\n-50,756.26 -14,524.86 \r\n-46,945.16 35,212.86 \r\n-2,517,822.79 \r\n \r\n$ \r\n \r\n1,172,799.78 \r\n \r\n769,594.34 549,319.00 185,947.19 919,310.24 \r\n \r\n2,900,000.00 -611 697.12 \r\n \r\n$ \r\n \r\n5,885,273.43 \r\n \r\n$ \r\n \r\n3,367,450.64 \r\n \r\n10,255,740.05 \r\n \r\n$ ==1=3=,6..,23='1...9.,..0,...6..,.9 \r\n \r\n-3- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Inventories Capital Projects \r\nUnreserved Designated for Student Activities Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 667,369.32 $ 260,102.76 $ 933,851.39 3,467,572.18 \r\n \r\n11,685.92 48,745.25 844,320.86 50,549.77 35,271.72 13 414.96 \r\n \r\n150,636.44 \r\n \r\n927,472.08 4,401,423.57 \r\n11,685.92 199,381.69 844,320.86 50,549.77 35,271.72 \r\n13414.96 \r\n \r\n$ 2,605,209.19 $ 3,878,311.38 $ ===6,=48=3=,5=2=0.=57= \r\n \r\n$ \r\n \r\n2,139.28 $ \r\n \r\n1,012,062.32 \r\n \r\n1.89 \r\n \r\n$ 1,014,203.49 $ \r\n \r\n362.12 $ 362.12 $ \r\n \r\n2,501.40 1,012,062.32 \r\n1.89 \r\n1,014,565.61 \r\n \r\n$ 174,304.75 \r\n \r\n$ \r\n \r\n13,414.96 \r\n \r\n$ 3,877,949.26 \r\n \r\n116,284.12 \r\n \r\n1,287,001.87 \r\n \r\n$ 1,591,005.70 $ 3,877,949.26 $ \r\n \r\n174,304.75 13,414.96 \r\n3,877,949.26 \r\n116,284.12 \r\n1,287,001.87 \r\n5,468,954.96 \r\n \r\n$ 2,605,209.19 $ 3,878,311.38 $ ===6,=48=3=,5=2=0.=57= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\n \r\n$ 5,468,954.96 \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n87,500.00 \r\n \r\n234,670.57 \r\n \r\n9,163,513.05 \r\n \r\n1,186,592.10 \r\n \r\n-2,618,592.34 \r\n \r\n8,152,027.31 \r\n \r\n2,208.42 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 13,623,190.69 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds from Sale of Bonds by City Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,137,421.52 $ \r\n6,839,114.57 382,763.26 984,671.47 54,943.88 919 310.24 \r\n \r\n$ 769,594.34 \r\n10.00 \r\n131,003.31 \r\n \r\n1,137,421.52 769,594.34 \r\n6,839,124.57 382,763.26 984,671.47 185,947.19 919,310.24 \r\n \r\n$ 10,318,224.94 $ 900,607.65 $ 11,218,832.59 \r\n \r\n$ 6,355, 196.25 $ 218,604.26 $ 6,573,800.51 \r\n \r\n332,993.87 130,318.95 178,278.86 464,173.16 755,818.21 128,954.71 628,863.74 132,086.75 \r\n3,310.00 48,017.77 519,566.65 \r\n \r\n3,668.25 819.00 \r\n63,244.27 49,133.90 52,538.00 17,476.73 \r\n202,134.12 \r\n \r\n332,993.87 130,318.95 178,278.86 467,841.41 756,637.21 192,198.98 677,997.64 184,624.75 20,786.73 48,017.77 519,566.65 202,134.12 \r\n \r\n$ 9,677,578.92 $ 607,618.53 $ 10,285,197.45 \r\n \r\n$ 640,646.02 $ 292,989.12 $ \r\n \r\n933,635.14 \r\n \r\n$ 2,900,000.00 $ 2,900,000.00 \r\n \r\n-611,697.12 \r\n \r\n-611,697.12 \r\n \r\n$ 2,288,302.88 $ 2,288,302.88 \r\n \r\n$ 640,646.02 $ 2,581,292.00 $ 3,221,938.02 \r\n \r\n950,359.68 1,296,657.26 \r\n \r\n2,247,016.94 \r\n \r\nFund Balances - Ending \r\n \r\n$ 1,591,005.70 $ 3,877,949.26 $ 5,468,954.96 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\n \r\n$ 3,221,938.02 \r\n \r\n$ 348,549.45 -238,415.05 \r\n \r\n110,134.40 35,378.22 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 3,367,450.64 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n$ 34,469.54 528.24 \r\n$ 34,997.78 \r\n$ 34,997.78 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofChickamauga Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City ofChickamauga Board ofEducation is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements ofthe City of Chickamauga Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\n-9- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation ofthe United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City ofChickamauga fixed the property tax levy for the 2006 tax digest year (calendar year) on October 2, 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 Chickamauga City Clerk bills and collects the property taxes for the School District and remits 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 $1,137,421.52. \r\n \r\nThe tax millage rate levied for the 2006 tax year (calendar year) for the City ofChickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n10.25 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $769,594.34 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance ofSpecial Purpose Local Option Sales Tax (SPLOST). In fiscal year 2007, the School District provided $611,697.12 ofSPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 \r\n \r\nNIA 15 to 80 years 15 to 80 years 5 to 25 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nNET ASSETS \r\n \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value ofsuch surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $2,465,175.90. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \r\nagent in the School District's name, Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n2,160,876.92 \r\n \r\n3 \r\n \r\n314.54 \r\n \r\nTotal \r\n \r\n$2,161,191.46 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2007, the carrying value ofthe School District's total investments was $3,467,572.18, which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Local Government Investment Pool is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department ofAudits and Accounts at http://www.audits.state.ga.us/internet/searchRpts.html. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2007, was 15 days. \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1. 2006 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30. 2007 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 98,343.93 \r\n \r\n$ \r\n \r\n0.00 $ 87.500.00 \r\n \r\n0.00 $ 98,343.93 87,500.00 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 98,343.93 $ 87,500.00 $ \r\n \r\n0.00 $ 185,843.93 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$9,158,388.05 $ 5,125.00 \r\n \r\n955,193.55 237,772.55 $ \r\n \r\n216,518.67 \r\n \r\n18,151.90 \r\n \r\n$9,163,513.05 6,374.00 1,186,592.10 \r\n234,670.57 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n1,684,920.00 534,548.03 167,083.26 \r\n \r\n152,538.91 80,659.16 \r\n5,216.98 \r\n \r\n6,374.00 \r\n \r\n1,837,458.91 608,833.19 172,300.24 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 7,943,548.98 $ 22,634.40 $ \r\n \r\n0.00 $ 7,966,183.38 \r\n \r\nGovernmental Activity Capital Assets - Net $ 8,041,822.21 $ 110,134.40 $ \r\n \r\nQ,QQ $8,152,027.31 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services \r\n \r\n$ 155,719.16 \r\n \r\n$ 5,054.34 559.35 \r\n23,351.82 32,744.90 \r\n9,167.60 \r\n \r\n70,878.01 11,817.88 \r\n \r\n$ 238,415.05 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are reported as restricted assets in the Statement ofNet Assets because their use is limited by statutory provisions. Restricted assets at June 30, 2007, were as follows: \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Capital Acquisitions \r\n \r\n$ 3,984.44 $ 256,118.32 $ 918,612.46 $ 2,548,959.72 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2007, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nCity of Chickamauga \r\n \r\n$ 611,697.12 \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance ofSpecial Purpose Local Option Sales Tax (SPLOST). In fiscal year 2007, the School District provided $611,697.12 ofSPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The City of Chickamauga Board of Education has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Each Employee \r\n \r\n$ 10,000.00 $ 10,000.00 \r\n \r\nNote 9: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $120,201.83 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $115,454.27 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $3,827.56 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$920.00 \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\n \r\nNote 11: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2007 2006 2005 \r\n \r\n100% 100% 100% \r\n \r\n$ 485,502.32 $ 449,609.14 $ 434,328.27 \r\n \r\n- 19 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ 1,050,000.00 $ 1,050,000.00 $ 1,137,421.52 \r\n \r\n6,445,754.00 \r\n \r\n6,630,493.00 \r\n \r\n6,839,114.57 \r\n \r\n413,020.00 \r\n \r\n411,003.00 \r\n \r\n382,763.26 \r\n \r\n1,399,400.00 \r\n \r\n1,391,900.00 \r\n \r\n984,671.47 \r\n \r\n19,650.00 \r\n \r\n25,450.00 \r\n \r\n54,943.88 \r\n \r\n404,650.00 \r\n \r\n534,950.00 \r\n \r\n919,310.24 \r\n \r\n$ 9,732,474.00 $ 10,043,796.00 $ 10,318,224.94 \r\n \r\n$ 6,297,016.15 $ 6,369,754.46 $ 6,355, 196.25 \r\n \r\n431,654.48 67,541.00 173,169.48 \r\n450,194.71 787,096.00 129,497.91 672,917.81 194,395.00 \r\n3,310.00 55,000.00 574,000.00 \r\n \r\n335,917.48 142,817.13 175,121.48 459,997.71 769,169.00 133,644.91 674,914.81 195,495.00 \r\n3,310.00 55,000.00 574,000.00 \r\n \r\n332,993.87 130,318.95 178,278.86 464,173.16 755,818.21 128,954.71 628,863.74 132,086.75 \r\n3,310.00 48,017.77 519,566.65 \r\n \r\n$ 9,835,792.54 $ 9,889,141.98 $ 9,677,578.92 \r\n \r\n$ \r\n \r\n-103,318.54 $ \r\n \r\n154,654.02 $ \r\n \r\n640,646.02 \r\n \r\n950,359.68 \r\n \r\n950,359.68 \r\n \r\n950,359.68 \r\n \r\n-3 447.37 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n847 041.14 $ 1I101 1566.33 $ ===1,:=59=:1:!:Z0::0:=5=7:.=:0 \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A NIA $ \r\n$ \r\n \r\n(2) 488,326.12 \r\n488,326.12 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n4 482.20 492,808.32 \r\n \r\n84.027 84.173 \r\n \r\nNIA $ NIA \r\n$ \r\n \r\n181,783.75 3 804.00 \r\n185,587.75 \r\n \r\n84.367 84.298 84.010 84.048 \r\n \r\nN/A N/A NIA NIA \r\n$ \r\n \r\n39,409.75 1,150.00 \r\n43,237.22 10 169.00 \r\n279,553.72 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n$ ===7=72=,3=6=2=.0=4 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($14,965) were not maintained separately and are included in the 2007 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\nGRANTS \r\n \r\nEducation, Georgia Department of \r\n \r\nQuality Basic Education \r\n \r\nDirect Instructional Cost \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program - Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades - Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades - Early Intervention (4-5) Program \r\n \r\nMiddle Grades (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nMedia Center Program \r\n \r\n20 Days Additional Instruction \r\n \r\nStaff and Professional Development \r\n \r\nIndirect Cost \r\n \r\nCentral Administration \r\n \r\nSchool Administration \r\n \r\nFacility Maintenance and Operations \r\n \r\nCategorical Grants \r\n \r\nPupil Transportation \r\n \r\nPupil Transportation - State Bonds \r\n \r\nSparsity \r\n \r\nNursing Services \r\n \r\nPrincipal Supplements \r\n \r\nVocational Supervisors \r\n \r\nEducation Equalization Funding Grant \r\n \r\nFood Services \r\n \r\nVocational Education \r\n \r\nAmended Formula Adjustment \r\n \r\nOther State Programs \r\n \r\nGraduation Coaches \r\n \r\nK-8 Statewide Reading and Math Grants \r\n \r\nHealth Insurance \r\n \r\nMiddle School Remediation \r\n \r\nNational Teacher Certification \r\n \r\nPreschool Handicapped Program \r\n \r\nSpecial Education Low Incidence Grant \r\n \r\nTeachers' Retirement \r\n \r\nVirtual School Grant \r\n \r\n328,646.00 18,826.00 \r\n842,023.00 91,662.00 \r\n445,451.00 29,694.00 \r\n964,148.00 873,063.00 358,118.00 321,606.00 248,592.00 \r\n33,509.00 83,417.00 137,497.00 45,479.00 24,969.00 \r\n333,761.00 367,610.00 365,677.00 \r\n50,000.00 20,000.00 41,936.00 \r\n4,114.00 7,616.04 549,319.00 26,758.00 102,319.70 -117,982.00 \r\n40,075.00 22,500.00 115,454.27 \r\n324.00 38,833.00 13,556.00 \r\n5,546.00 3,827.56 \r\n250.00 \r\n \r\n$ 328,646.00 18,826.00 \r\n842,023.00 91,662.00 \r\n445,451.00 29,694.00 \r\n964,148.00 873,063.00 358,118.00 321,606.00 248,592.00 \r\n33,509.00 83,417.00 137,497.00 45,479.00 24,969.00 \r\n333,761.00 367,610.00 365,677.00 \r\n50,000.00 20,000.00 41,936.00 \r\n4,114.00 7,616.04 549,319.00 26,758.00 102,319.70 -117,982.00 \r\n40,075.00 22,500.00 115,454.27 \r\n324.00 38,833.00 13,556.00 \r\n5,546.00 3,827.56 \r\n250.00 \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\n$ \r\n \r\n10.00 \r\n \r\n10.00 \r\n \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\n920.00 \r\n \r\n920.00 \r\n \r\n$ 6,839,114.57 $ ===1..0...0..=0 $ 6,839,124.57 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nConstruction and equipping additional instructional space at Chickamauga Elementary School; Constructing, modifying, renovating and equipping Gordon Lee Middle School; Modifying and upgrading HVAC at WareJewell Activities Building at Gordon Lee High School; Constructing new physical education and athletic facilities at Gordon Lee High School; and acquiring, constructing, repairing, improving, retrofitting, upgrading and equipping other building and facilities useful or desirable in connection therewith, including acquiring any necessary property therefore, both real and personal. \r\nConstruction of additions, renovations and improvements to Gordon Lee High School, Gordon Lee Middle School and Chickamauga Elementary School, including the upgrading and expansion of technology and equipment; Construction of additions, renovations and improvements to various athletic facilities and sites; System-wide security and safety improvements and HVAC upgrades; Acquisition of new school buses, textbooks, desks, rolling science labs and driver education simulators; Upgrading and equipping cafeterias; and acquisition, construction, improvement, repair and equipping of facilities, including acquisition of any necessary property therefore, both real and personal. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEAR (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\n$ 3,575,000.00 $ 3,575,000.00 $ 149,903.04 $ 2,338,818.00 Ongoing \r\n \r\n4,244,857.00 4,244,857.00 \r\n \r\n457 715.49 \r\n \r\nOngoing \r\n \r\n$ 7,819,857.00 $ 7,819,857.00 $ 607,618.53 $ 2,338,818.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of the City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\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: \r\n \r\nPrior Years \r\n \r\n$ 318,156.78 \r\n \r\nCurrent Year Total \r\n \r\n70,496.25 $ 388,653.03 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 24- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category Ill Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES OPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n353,820.00 $ 308,942.32 $ \r\n \r\n6,633.11 $ \r\n \r\n315,575.43 \r\n \r\n19,304.00 \r\n \r\n12,972.28 \r\n \r\n12,972.28 \r\n \r\n908,490.00 \r\n \r\n876,377.76 \r\n \r\n18,649.57 \r\n \r\n895,027.33 \r\n \r\n99,812.00 \r\n \r\n103,186.88 \r\n \r\n883.20 \r\n \r\n104,070.08 \r\n \r\n482,489.00 \r\n \r\n510,955.32 \r\n \r\n7,309.65 \r\n \r\n518,264.97 \r\n \r\n29,278.00 1,045,492.00 \r\n935,467.00 382,624.00 347,490.00 \r\n277,017.00 36,795.00 89,262.00 \r\n \r\n30,425.33 1,119,162.89 1,102,913.89 \r\n295,555.65 \r\n296,289.32 262,283.61 \r\n93,677.08 53 694.41 \r\n \r\n17,229.71 26,219.12 30,880.39 \r\n18,569.28 4,738.43 \r\n359.76 842.00 \r\n \r\n30,425.33 1,136,392.60 1,129,133.01 \r\n326,436.04 \r\n314,858.60 267,022.04 \r\n94,036.84 54 536.41 \r\n \r\n$ \r\n \r\n5,007,340.00 $ 5,066,436.74 $ 132,314.22 $ 5,198,750.96 \r\n \r\n148,620.00 27 226.00 \r\n \r\n154,011.91 \r\n \r\n17,352.64 27,316.03 \r\n \r\n171,364.55 27 316.03 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n5,183,186.00 $ 5,220,448.65 $ 176,982.89 $ 5,397,431.54 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 11, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofCity ofChickamauga Board ofEducation as ofand for the year ended June 30, 2007, which collectively comprise City of Chickamauga Board ofEducation's basic financial statements and have issued our report thereon dated February 11, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose ofexpressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe City of Chickamauga Board of Education's internal control over financial reporting. \r\nA control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the City of Chickamauga Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally \r\n2007YB-10 \r\n \r\n accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City of Chickamauga Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the City ofChickamauga Board ofEducation's internal control. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the City of Chickamauga Board of Education's internal control. \r\nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part ofobtaining reasonable assurance about whether City ofChickamauga Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted a certain matter that we have reported to management of City of Chickamauga Board of Education in a separate letter dated February 11, 2008. \r\nThis report is intended solely for the information and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2007YB-10 \r\n \r\n~W-~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 11, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of City of Chickamauga 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. City of Chickamauga Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofCity ofChickamauga Board of Education's management. Our responsibility is to express an opinion on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Pro.fit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Chickamauga Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements. \r\n2007SA-10 \r\n \r\n In our opinion, the City ofChickamauga Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2007. \r\nInternal Control Over Compliance \r\nThe management of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe City of Chickamauga Board of Education's internal control over compliance. \r\nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \r\nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement ofa Federal program will not be prevented or detected by the entity's internal control. \r\nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\nThis report is intended solely for the information and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\nw~ \r\nR ssell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2007SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofChickamauga Board ofEducation's financial statements was unqualified. \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the City of Chickamauga Board of Education did not disclose any significant deficiencies related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Chickamauga Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the City of Chickamauga Board of Education did not disclose any significant deficiencies in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City of Chickamauga Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 Jlie City ofChickamauga Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The City of Chickamauga Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2005-h2006","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, 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, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2006-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with: Fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga--fast","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Chickamauga--fast","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n3 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n4 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n5 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n6 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n7 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n21 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n22 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n23 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n24 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n25 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nSECTION III \r\nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 2, 2007 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Chickamauga Board ofEducation, a component unit ofthe City of Chickamauga, Georgia as ofand for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Chickamauga Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1ons. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education, as of June 30, 2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n The City of Chickamauga Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 2, 2007, on our consideration of the City of Chickamauga Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 21, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chickamauga Board ofEducation's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n~.... G Q W ~ \r\n~J:ell W. Hinton, CPA, CGFM \r\nState Auditor \r\nRWH:as 2006ARL-11 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY STATEMENT OF NET ASSETS JUNE 30, 2006 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nSalaries Payable \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n849,891 \r\n \r\n1,300,929 \r\n \r\n148,426 788,175 \r\n8,312 40,127 16,862 \r\n \r\n98,344 216,518 9,158,388 955,193 -2,386,551 \r\n \r\n$ ===1=1=1=9=4=6=14= \r\n \r\n$ \r\n \r\n938 872 \r\n \r\n$ \r\n \r\n8,041,892 \r\n \r\n141,239 1,296,658 \r\n775 953 \r\n \r\n$ \r\n \r\n10 255 742 \r\n \r\n$ ===11=1=9=4=6=14= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2006 \r\n \r\nEXHIBIT\"B\" \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\n \r\n$ 6,187,223 $ \r\n281,239 163,152 159,517 440,195 736,866 130,216 646,936 125,284 \r\n22,334 \r\n51,486 507,816 \r\n \r\n385,633 $ \r\n16,347 67 \r\n13,695 \r\n418 318 \r\n \r\n4,581,658 $ \r\n161,681 160,239 129,637 265,310 367,577 \r\n80,948 367,953 \r\n848 1,638 \r\n49,961 141 779 \r\n \r\n-1,219,932 \r\n-119,558 -2,913 \r\n-29,880 -174,885 -352,942 \r\n-49,268 -278,916 -110,741 \r\n-20,696 \r\n-1,525 52 281 \r\n \r\nTotal Governmental Activities \r\n \r\n$ 9,452,264 $ \r\n \r\nGeneral Revenues and Special Items Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Transfer to City Government \r\n \r\n834 060 $ =====6=,3=0=9,=22=9= $ \r\n$ \r\n \r\n-2,308,975 \r\n993,100 \r\n728,031 284,108 \r\n55,039 848,104 -584476 \r\n \r\nTotal General Revenues and Special Items \r\n \r\n$ \r\n \r\n2,323,906 \r\n \r\nChange in Net Assets \r\n \r\n$ \r\n \r\n14,931 \r\n \r\nNet Assets - Beginning of Year \r\n \r\n10240811 \r\n \r\nNet Assets - End of Year \r\n \r\n$ ===10..,,2=5=5..,,7=42= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2006 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nSalaries Payable \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Inventories Capital Projects \r\nUnreserved Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n448,719 $ \r\n \r\n401,172 $ \r\n \r\n532,318 \r\n \r\n768,611 \r\n \r\n54,721 788,175 \r\n8,312 40,127 16 862 \r\n \r\n126,875 \r\n \r\n849,891 1,300,929 \r\n181,596 788,175 \r\n8,312 40,127 16 862 \r\n \r\n$ \r\n \r\n1,889,234 $ \r\n \r\n1,296,658 $ =====3alaa,1=8=5,=89=2= \r\n \r\n$ \r\n \r\n938,872 \r\n \r\n$ \r\n \r\n938 872 \r\n \r\n$ \r\n \r\n124,377 \r\n \r\n$ \r\n \r\n16,862 \r\n \r\n$ 1,296,658 \r\n \r\n809,123 \r\n \r\n$ \r\n \r\n950,362 $ 1,296,658 $ \r\n \r\n124,377 16,862 \r\n1,296,658 \r\n809 123 2,247,020 \r\n \r\n$ 1,889,234 $ 1,296,658 $ =====3;;.,1=8=5,=8=92= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \r\n \r\nEXHIBIT\" \" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n2,247,020 \r\n \r\n$ \r\n \r\n98,344 \r\n \r\n216,518 \r\n \r\n9,158,388 \r\n \r\n955,193 \r\n \r\n-2,386,551 \r\n \r\n8,041,892 \r\n \r\n-33 170 \r\n \r\n$ 10,255,742 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nTransfers Out \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,165,481 $ \r\n5,984,527 608,810 834,060 19,137 847 639 \r\n$ 9,459,654 $ \r\n \r\n$ \r\n728,031 \r\n35,902 465 \r\n764,398 $ \r\n \r\n1,165,481 728,031 \r\n5,984,527 608,810 834,060 55,039 848 104 \r\n10,224,052 \r\n \r\n$ 6,057,108 $ \r\n281,239 163,152 159,517 434,313 734,435 135,271 621,296 165,635 \r\n4,916 48,965 514,218 \r\n \r\n$ 9,320,065 $ \r\n \r\n$ \r\n \r\n139,589 $ \r\n \r\n37,707 $ \r\n2,079 539 438 \r\n46 557 \r\n87 320 $ 677,078 $ \r\n \r\n6,094,815 \r\n281,239 163,152 159,517 434,313 736,514 135,810 621,734 165,635 \r\n4,916 48,965 514,218 46 557 \r\n9,407,385 \r\n816,667 \r\n \r\n-584 476 \r\n \r\n-584 476 \r\n \r\n$ \r\n \r\n139,589 $ \r\n \r\n92,602 $ \r\n \r\n232,191 \r\n \r\n810 773 \r\n \r\n1,204,056 \r\n \r\n2,014,829 \r\n \r\n$ \r\n \r\n950,362 $ 1,296,658 $ =====2=,2=4=-7,=02=0= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\n \r\n$ \r\n \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\n \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\n \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\n \r\n$ 159,933 -204,812 \r\n \r\nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \r\n \r\n232,191 \r\n-44,879 -172,381 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ =====14=,9=31= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2006 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n$ ===26='=72=2= \r\n$ ===2=6,=72=2= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofChickamauga Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City ofChickamauga Board ofEducation is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements ofthe City of Chickamauga Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\n-9- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City ofChickamauga fixed the property tax levy for the 2005 tax digest year (calendar year) on October 3, 2005 (levy date). Taxes were due on December 20, 2005 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2005 tax digest are reported as revenue in the governmental funds for fiscal year 2006. The Chickamauga City Clerk bills and collects the property taxes for the School District and remits taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2006, for maintenance and operations amounted to $1,165,481. \r\n \r\nThe tax millage rate levied for the 2005 tax year (calendar year) for the City of Chickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n10.25 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $728,031 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2006, the School District provided $584,476 ofSPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAny Amount \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\nNIA 15 to 80 years 15 to 80 years 5 to 25 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nvalue of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS AtJune 30, 2006, the bank balances were $1,783,935. The amounts of the total bank balances are classified into four categories of custodial credit risk: \r\nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \r\nCategory 4 - Uncollateralized. \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 204,395 \r\n \r\n2 \r\n \r\n1,579,540 \r\n \r\n3 \r\n \r\n0 \r\n \r\n4 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$ 1,783.935 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2006, the carrying value ofthe School District's total investments was $768,611 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\nInvestments in Georgia Fund 1 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U.S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2006, was 28 days. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2005 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2006 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n98,344 \r\n \r\n2,622,093 $ \r\n \r\n$ 629 $ 2,622,722 \r\n \r\n98,344 0 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 2,720,437 $ \r\n \r\n629 $ 2,622,722 $ \r\n \r\n98 344 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 6,535,666 $ 2,622,722 \r\n \r\n826,666 \r\n \r\n153,804 $ \r\n \r\n211,018 \r\n \r\n5,500 \r\n \r\n$ 25,277 \r\n \r\n9,158,388 955,193 216,518 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n1,554,339 490,272 162 405 \r\n \r\n130,580 69,553 \r\n4 679 \r\n \r\n25,277 \r\n \r\n1,684,919 534,548 167 084 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 5,366,334 $ 2,577,214 $ \r\n \r\n0 $ 7,943,548 \r\n \r\nGovernmental Activity Capital Assets - Net $ 8,Q86,771 $ 2,577,843 $ 2,622,722 $ 8,041,892 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services \r\n \r\n$ 129,992 \r\n \r\n$ \r\n \r\n4,679 \r\n \r\n280 \r\n \r\n20,048 \r\n \r\n26,149 \r\n \r\n13,856 \r\n \r\n65,012 9 808 \r\n \r\n$ 204,812 \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are reported as restricted assets in the Statement of Net Assets because their use is limited by statutory provisions. Restricted assets at June 30, 2006, were as follows: \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Capital Acquisitions \r\n \r\n$ \r\n \r\n4,395 $ 396,777 \r\n \r\n$ 666,390 $ 102,221 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2006, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From District-wide Capital Projects \r\n \r\nCity of Chickamauga \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2006, the School District provided $584,476 ofSPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The City of Chickamauga Board of Education has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Each Employee \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\nNote 9: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $101,830 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $100,910 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $920 \r\n \r\nNote 10: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nNote 11: SUBSEQUENT EVENTS \r\n \r\nOn September 19, 2006, the voters of City of Chickamauga - Walker County voted in favor of a Special Purpose Local Option Sales Tax Referendum for educational purposes. The imposition of the tax by the City of Chickamauga Board ofEducation is not to exceed $4,244,857 and is to be used for various capital outlay projects. Also with this vote, the issuance of debt in the amount of $2,900,000 was approved. \r\n \r\nNote 12: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2006 2005 2004 \r\n \r\n100% 100% 100% \r\n \r\n$ 449,609 $ 434,328 $ 421,532 \r\n \r\n- 19 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOther Sources \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n1,050,000 $ \r\n \r\n1,181,000 $ \r\n \r\n1,165,481 \r\n \r\n5,699,422 \r\n \r\n5,839,214 \r\n \r\n5,984,527 \r\n \r\n601,587 \r\n \r\n616,255 \r\n \r\n608,810 \r\n \r\n766,450 \r\n \r\n771,100 \r\n \r\n834,060 \r\n \r\n8,766 \r\n \r\n14,641 \r\n \r\n19,137 \r\n \r\n771 970 \r\n \r\n831 970 \r\n \r\n847 639 \r\n \r\n$ \r\n \r\n8,898,195 $ \r\n \r\n9,254,180 $ \r\n \r\n9 459 654 \r\n \r\n$ \r\n \r\n5,915,559 $ \r\n \r\n5,917,705 $ \r\n \r\n6,057,108 \r\n \r\n251,572 158,836 161,828 426,873 715,730 141,366 611,804 159,303 \r\n3,325 55,000 536,000 \r\n \r\n275,687 163,604 160,828 426,873 715,430 137,290 612,104 149,303 \r\n6,325 55,000 546,582 \r\n \r\n281,239 163,152 159,517 434,313 734,435 135,271 621,296 165,635 \r\n4,916 48,965 514 218 \r\n \r\n$ \r\n \r\n9 137 196 $ \r\n \r\n9 166 731 $ \r\n \r\n9,320,065 \r\n \r\n$ \r\n \r\n-239,001 $ \r\n \r\n87,449 $ \r\n \r\n139,589 \r\n \r\n3 000 \r\n \r\n$ \r\n \r\n-236,001 $ \r\n \r\n810,771 \r\n \r\n4 771 \r\n \r\n3 000 90,449 $ 810,771 \r\n4486 \r\n \r\n139,589 810,773 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n579 541 $ \r\n \r\n905,706 $ ===9=5==0'=36=2= \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U.S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Enhancing Education Through Technology Program Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\nNIA \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 467 489 \r\n467,489 \r\n \r\n10.550 \r\n \r\nN/A \r\n$ \r\n \r\n20 717 488,206 \r\n \r\n84.027 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n84.332 84.318 84.367 84.298 84.010 84.048 \r\n \r\nN/A \r\nN/A N/A \r\nN/A NIA \r\nNIA \r\n$ \r\n \r\n178,328 3 411 \r\n181,739 \r\n207,278 976 \r\n37,354 2,345 \r\n52,590 10 763 \r\n493 045 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$===9=8=1=2=5=1 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($14,594) were not maintained separately and are included in the 2006 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Sparsity Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs K-3 Statewide Reading Program Health Insurance National Teacher Certification Preschool Handicapped Program Special Education Low Incidence Grant \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n304,208 5,859 \r\n798,173 93,262 \r\n434,802 8,611 \r\n950,285 778,580 311,690 \r\n6,805 17,723 176,652 56,434 50,872 290,318 38,041 73,968 127,439 43,040 24,109 \r\n325,893 348,384 364,528 \r\n20,000 42,502 \r\n4,237 4,546 333,970 26,014 57,322 -299,136 \r\n25,000 100,910 \r\n25,937 8,080 4,549 \r\n920 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23 - \r\n \r\n$ ======5=,9=8=41=,5=27=== \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION-WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\nConstruction of a new physical education facility for Gordon Lee Middle/High School; construct and equip a new Science/Math classroom building for Gordon Lee High School; repair, renovate, modify, retrofit, and reroof selected classrooms and buildings; renovate and retrofit for accommodation of computers and other technology equipment for: Chickamauga Elementary School, Gordon Lee Middle School and Gordon Lee High School \r\n \r\n$ 3,776,340 $ 3,776,340 $ \r\n \r\n83,052 $ 3,062,895 Completed \r\n \r\nConstruction and equipping additional instructional space at Chickamauga Elementary School; Constructing, modifying, renovating and equipping Gordon Lee Middle School; Modifying and upgrading HVAC at WareJewell Activities Building at Gordon Lee High School; Constructing new physical education and athletic facilities at Gordon Lee High School; and acquiring, constructing, repairing, improving, retrofitting, upgrading, and equipping other building and facilities useful or desirable in connection therewith, including acquiring any necessary property therefore, both real and personal \r\n \r\n3,575,000 \r\n \r\n3,575,000 \r\n \r\n3 728 \r\n \r\n2,335,090 Completed \r\n \r\n$ 7 351 340 $ 7 351 340 $ \r\n \r\n86780 $==5===39=7~9=8=5 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of the City of Chickamauga approved the imposition of a 1% sales tax to fund the above project and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n615,614 \r\n \r\nCurrent Year \r\n \r\n64476 \r\n \r\nTotal \r\n \r\n$ =====6=80=,0=9=0 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory Ill \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\n331,047 $ 12,214 \r\n862,864 100,345 469,725 \r\n11,119 1,024,942 \r\n847,828 338,030 333,607 \r\n316,684 38,816 80289 \r\n \r\n313,161 $ 46,219 810,798 76,635 452,388 \r\n22,774 1,005,581 1,028,603 \r\n311,791 \r\n226,240 276,449 \r\n31,477 42 343 \r\n \r\n4,010 $ 710 \r\n12,236 1,211 9,679 \r\n29,469 51,730 25,167 \r\n6,405 4,983 \r\n220 862 \r\n \r\n317,171 46,929 \r\n823,034 77,846 \r\n462,067 \r\n22,774 1,035,050 1,080,333 \r\n336,958 \r\n232,645 281,432 \r\n31,697 43 205 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n4,767,510 $ 4,644,459 $ \r\n \r\n146,682 $ \r\n \r\n4,791,141 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n138,170 26 351 \r\n \r\n140,256 6 615 \r\n \r\n12,977 19 910 \r\n \r\n153,233 26,525 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n4 932 031 $ 4,791,330 $ \r\n \r\n179 569 $ ==4='=97=0=,8=9=9 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 2, 2007 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Chickamauga Board ofEducation as ofand for the year ended June 30, 2006, which collectively comprise City of Chickamauga Board of Education's basic financial statements and have issued our report thereon dated February 2, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation 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. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. \r\n2006YB-10 \r\n \r\n Compliance and Other Matters \r\nAs part ofobtaining reasonable assurance about whether City ofChickamauga Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nThis report is intended solely for the information and use of the management and members of the City ofChickamauga Board ofEducation and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\nw..;g~ \r\nRus ell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2006YB-10 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 2, 2007 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of City of Chickamauga Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2006. City of Chickamauga 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 oflaws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofCity ofChickamauga Board of Education's management. Our responsibility is to express an opinion on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Chickamauga Board of Education's compliance with those requirements and performing such other procedures as we considered \r\n \r\n2006SA-10 \r\n \r\n necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements. \r\n \r\nIn our opinion, the City ofChickamauga Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2006. \r\n \r\nInternal Control Over Compliance \r\n \r\nThe management of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\n \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\n \r\nThis report is intended solely for the information and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\n \r\nRespectfully submitted, \r\n \r\n \r\n \r\nRWH:as 2006SA-10 \r\n \r\nRu sell W. Hinton, CPA, CGFM State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofChickamauga Board ofEducation's financial statements was unqualified. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Chickamauga Board of Education did not disclose any reportable conditions related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Chickamauga Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City of Chickamauga Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City of Chickamauga Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The City ofChickamauga Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n9. Low Risk Auditee The City of Chickamauga Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2004-h2005","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Walker County, Chickamauga, 34.87119, -85.29079"],"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-be33-bc4-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Chickamauga--fast","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n3 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n4 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n7 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n8 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n9 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n11 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n12 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n27 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n29 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n30 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMarch 4, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Chickamauga Board ofEducation, a component unit ofthe City ofChickamauga, Georgia as ofand for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Chickamauga Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1ons. \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education, as of June 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n2004ARL-11 \r\n \r\n The City of Chickamauga Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nAs discussed in Note 2 to the basic financial statements, during fiscal year 2004, the Board completed a comprehensive inventory of its capital assets for inclusion in the basic financial statements and consolidated its individual school activity accounts for inclusion in the basic financial statements. These changes are in accordance with generally accepted accounting principles. \r\nAs described in Note 2, the City of Chickamauga 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, 2004. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 4, 2005, on our consideration of the City of Chickamauga Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chickamauga Board ofEducation's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\n2004ARL-11 \r\n \r\n A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2004ARL-11 \r\n \r\nState Auditor \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION-WALKER COUNTY STATEMENT OF NET ASSETS JUNE 30, 2004 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \r\nDue Within One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n831,571 \r\n \r\n1,622,226 \r\n \r\n141,452 691,525 \r\n28,302 6,262 10,968 \r\n \r\n98,344 1,747,804 \r\n211,018 6,535,666 \r\n757,216 -2,049,661 \r\n \r\n$ ===1=0=,6=3=2,...,69=3= \r\n \r\n$ \r\n \r\n231,459 \r\n \r\n639,827 \r\n \r\n160,733 \r\n \r\n117,640 \r\n \r\n15,524 \r\n \r\n24478 \r\n \r\n$ \r\n \r\n1,189,661 \r\n \r\n$ \r\n \r\n7,275,909 \r\n \r\n41,426 1,290,029 \r\n835,668 \r\n \r\n$ \r\n \r\n9,443,032 \r\n \r\n$ ===1=0=,6=3=2,=69=3= \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30. 2004 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChanges in Net Assets \r\nNet Assets - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n5,686,904 $ \r\n \r\n261,275 111,847 176,768 358,961 745,604 707,853 604,427 139,708 \r\n39,949 \r\n \r\n35,259 0 \r\n522,329 542 \r\n \r\n$ \r\n \r\n9,391,426 $ \r\n \r\n287,855 \r\n361,864 649 719 \r\n \r\nNet Assets - End of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n4,134,030 \r\n \r\n$ \r\n \r\n-1,265,019 \r\n \r\n129,317 98,941 118,960 \r\n270,624 344,380 \r\n$ \r\n157 \r\n \r\n53,048 364,215 \r\n530 \r\n \r\n-131,958 -12,906 -57,808 -88,337 \r\n-401,224 -654,805 -240,212 -139,551 \r\n-39,419 \r\n \r\n129,359 \r\n \r\n34,158 \r\n \r\n-35,259 34,158 -31,106 \r\n-542 \r\n \r\n$ \r\n \r\n5,225,768 $ \r\n \r\n451 951 $ \r\n \r\n-3,063,988 \r\n \r\n$ \r\n \r\n932,782 \r\n \r\n616,605 128,960 40,951 803 930 \r\n \r\n$ \r\n \r\n2,523,228 \r\n \r\n$ \r\n \r\n-540,760 \r\n \r\n9 983 792 \r\n \r\n$ ====9=,4=4=3=0=3==2 \r\n \r\n-5- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION -WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2004 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Inventories Continuation of Federal Programs Capital Projects \r\nUnreserved Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n548.424 $ \r\n \r\n283,147 $ \r\n \r\n445,726 \r\n \r\n1,176,500 \r\n \r\n691,525 28,302 6,262 10 968 \r\n \r\n108,755 \r\n \r\n831,571 1,622,226 \r\n108,755 691,525 \r\n28,302 6,262 10 968 \r\n \r\n$ \r\n \r\n1,731,207 $ \r\n \r\n1,568,402 $ ======3\u0026,2=9='9,=60=9= \r\n \r\n$ \r\n \r\n231,459 \r\n \r\n$ \r\n \r\n639,827 \r\n \r\n$ \r\n \r\n160,733 \r\n \r\n117,640 \r\n \r\n15,524 \r\n \r\n$ \r\n \r\n886,810 $ \r\n \r\n278,373 $ \r\n \r\n231,459 639,827 160,733 117,640 \r\n15 524 \r\n1 165 183 \r\n \r\n$ \r\n \r\n10,968 \r\n \r\n$ \r\n \r\n30,458 \r\n \r\n$ 1,290,029 \r\n \r\n802,971 \r\n \r\n$ \r\n \r\n844 397 $ 1,290,029 $ \r\n \r\n10,968 30,458 1,290,029 \r\n802 971 \r\n2,134,426 \r\n \r\n$ \r\n \r\n1,731,207 $ \r\n \r\n1,568,402 $ ======3,..,2=9=9,~6,;;,;09~ \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS \r\nJUNE 30. 2004 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in .the funds. Long-Term Liabilities at year-end consist of: \r\nCapital Leases \r\n \r\n$ 2,134,426 \r\n \r\n$ \r\n \r\n98,344 \r\n \r\n1,747,804 \r\n \r\n211,018 \r\n \r\n6,535,666 \r\n \r\n757,216 \r\n \r\n-2,049,661 \r\n \r\n7,300,387 \r\n \r\n32,696 \r\n \r\n-24 478 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ =====9'==44=3;.,;,0=3=1 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nTransfers Out \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n929.106 \r\n \r\n$ \r\n \r\n5,375,637 \r\n \r\n431,042 \r\n \r\n649,719 \r\n \r\n12,104 \r\n \r\n803,930 \r\n \r\n$ 8,201,538 $ \r\n \r\n$ 616.605 \r\n28,847 645,452 $ \r\n \r\n929.106 616.605 5,375,637 431,042 649,719 \r\n40,951 803,930 \r\n8,846,990 \r\n \r\n$ 5,393.884 \r\n \r\n$ \r\n \r\n5,393,884 \r\n \r\n261,275 111,847 176,768 354,885 745,604 114,892 536,668 103,307 \r\n7,147 35,259 499,178 \r\n4,700 $ \r\n \r\n2,075,933 \r\n \r\n261,275 111,847 176,768 354,885 745,604 114,892 536,668 103,307 \r\n7,147 35,259 499,178 2,080,633 \r\n \r\n23,006 3 039 \r\n \r\n23,006 \r\n \r\n542 \r\n \r\n3 581 \r\n \r\n$ 8,371,459 $ 2,076,475 $ 10,447,934 \r\n \r\n$ \r\n \r\n-169,921 $ -1,431,023 $ -1,600,944 \r\n \r\n-583,480 \r\n \r\n-583,480 \r\n \r\n$ \r\n \r\n-169,921 $ -2,014,503 $ -2,184,424 \r\n \r\n1,014,318 \r\n \r\n3,304,532 \r\n \r\n4,318,850 \r\n \r\n$ \r\n \r\n844,397 $ 1,290,029 $ ==2=!'=13=4=,4=26= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nBecause some property taxes will not be collected for several months after the School District\"s fiscal year ends, they are not considered \"available\" revenues. \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nCapital Lease Payments \r\n \r\n$ -2,184,424 \r\n \r\n$ \r\n \r\n1,790,063 \r\n \r\n-173 081 \r\n \r\n1,616,982 3,676 \r\n \r\n23,006 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ==-=54=0=,7=6=0 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION-WALKER COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2004 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS $ ===25=,9=9=7= \r\n$ ===25='=99=7= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofChickamauga Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City of Chickamauga Board of Education is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements ofthe City of Chickamauga Board of Education. \r\nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \r\n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and Special Purpose Local Option Sales Tax proceeds to be used for the acquisition, construction or renovation of major capital facilities. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \r\n \r\nIn prior years, the financial activities of the School District's School Food Services Fund, Lottery Programs, Federal Programs and Other Programs were reported as Special Revenue Funds. These funds had a combined fund balance of$21 l,283 at July 1, 2003. For fiscal year 2004, 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, 2004. The governmental fund activity ofthe various school activity accounts had a fund balance of$104,795 at July 1, 2003. This change is in accordance with generally accepted accounting principles. \r\n \r\nGeneral Fund Balance July 1, 2003 \r\n \r\n$ 698,239 \r\n \r\nAdd Funds Consolidated with General Fund: School Food Services Fund Other Programs School Activity Account - Governmental Activity \r\n \r\n49,010 162,274 104,795 \r\n \r\nGeneral Fund Balance July 1, 2003 (Restated) \r\n \r\n$ 1,014,318 \r\n \r\nCHANGES IN ACCOUNTING PRINCIPLES \r\n \r\nThe City ofChickamauga Board ofEducation has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004. \r\n \r\nThe provisions of GASB Statement No. 34 require the inclusion ofa Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \r\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nGeneral Fund (Restated) July 1, 2003 Capital Projects Fund \r\n \r\n$ 1,014,318 3,304,532 \r\n \r\nGovernmental Funds (Restated) July 1, 2003 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Capital Leases Payable \r\n \r\n$ 4,318,850 7,559,985 -1,876,580 29,021 -47 484 \r\n \r\nNet Assets Beginning (See Exhibit \"B\") \r\n \r\n$ 9!983!792 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \r\n \r\nINVESTMENTS \r\n \r\nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Chickamauga fixed the property tax levy for the 2003 tax digest year (calendar year) on October 6, 2003 (levy date). Taxes were due on December 29, 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 Chickamauga City Clerk bills and collects the property taxes for the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $929,106. \r\n \r\nThe tax millage rate levied for the 2003 tax year (calendar year) for the City of Chickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n10.25 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $616,605 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2004, the School District provided $583,480 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the District-wide financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the purchases method to account for inventories whereby expenditures are recorded at the time of purchase or when received. To conform to generally accepted accounting principles, all food inventories should be accounted for using the consumption method whereby an asset is recorded when foods are purchased/received and expenses are recorded at the time the food items are consumed. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAny Amount \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\n$ \r\n \r\n5,000 \r\n \r\nNIA 15 to 80 years 15 to 80 years 5 to 25 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nbeen 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. \r\nAcceptable security for deposits consists of any one of or any combination ofthe following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $2,109,018. The amounts of the total bank balances are classified into three categories of credit risk: \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 310,235 \r\n \r\n2 \r\n \r\n1,798,783 \r\n \r\n3 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$ 2,109.018 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2004, the carrying value ofthe School District's total investments was $656,133 which is materially the same as fair value. This investment consisted entirely offunds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net ofmanagement fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years. \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2003 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30. 2004 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n98,344 \r\n \r\n$ \r\n \r\n56,297 $ 1,691,507 \r\n \r\n0 $ \r\n \r\n98,344 \r\n \r\n1,747,804 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 154,641 $ 1,691,507 $ \r\n \r\n0 $ 1,846,148 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 6,507,220 $ 727,345 170,779 \r\n \r\n28,446 $ 29,871 40,239 \r\n \r\n0 $ 6,535,666 757,216 211,018 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n1,337,245 384,579 154,756 \r\n \r\n108,370 61,557 \r\n3 154 \r\n \r\n1,445,615 446,136 157,910 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 5,528.764 $ \r\n \r\n-74.525 $ \r\n \r\n0 $ 5,454.239 \r\n \r\nGovernmental Activity Capital Assets - Net $ 5,683.405 $ 1,616.982 $ \r\n \r\n0 $ 7,300.387 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2004, are as follows: \r\n \r\n- 20- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 5: CAPITAL ASSETS \r\nEquipment Less: Accumulated Depreciation \r\n \r\nGovernmental Funds \r\n$ 127,308 44,557 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\nInstruction Support Services \r\nGeneral Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services \r\n \r\n$====82='=.7=\"5==1 \r\n$ 108,438 \r\n1,300 3,024 21,613 18,949 10,463 9 294 \r\n \r\n$====1=='73'='=.0==8==1 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2004, were as follows: \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Capital Acquisitions \r\n \r\n$ \r\n \r\n6,223 $ 276,924 \r\n \r\n$ 560,224 $ 616,276 \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2004, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nCity of Chickamauga \r\n \r\n$=~5=83~,4=8=0 \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2004, the School District provided $583,480 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEndofYear Liability \r\n \r\n2003 2004 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n874 $ \r\n \r\n874 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n2,300 $ \r\n \r\n2,300 $ \r\n \r\n0 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\n- 22- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Each Employee \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Chickamauga Board ofEducation has entered into various lease agreements as lessee for the purchase oftwo 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. \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \r\n \r\nGovernmental Funds Capital Leases \r\n \r\nBalance July 1, 2003 \r\n \r\n$ \r\n \r\n47,484 \r\n \r\nDeductions Lease Payments \r\n \r\n23,006 \r\n \r\nBalance June 30, 2004 \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$==\"=24==,4==7==8 $_ _2~4,~47~8 \r\n \r\nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2005 \r\n \r\n$ \r\n \r\n24,478 $=====1-5==6===7 \r\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"H\" NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of$40,020 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $39,460 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $560 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2004, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n05-769-058; SA015-769-182; 04-769-054 04-769-053 Gordon Lee High School Renovations \r\n \r\n$ \r\n \r\n35,700 $ 406,617 \r\n \r\n126,865 \r\n \r\n53,447 \r\n \r\n587,069 \r\n \r\n0 \r\n \r\n$ 7492634 $ 4602064 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\n- 24- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 13: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2004 2003 2002 \r\n \r\n100% 100% 100% \r\n \r\n$ 421,532 $ 421,544 $ 398,216 \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n1,062,177 $ \r\n \r\n1,062,177 $ \r\n \r\n929,106 \r\n \r\n5,164,307 \r\n \r\n5,208,144 \r\n \r\n5,375,637 \r\n \r\n358,878 \r\n \r\n406,174 \r\n \r\n431,042 \r\n \r\n534,000 \r\n \r\n534,000 \r\n \r\n649,719 \r\n \r\n14,500 \r\n \r\n14,500 \r\n \r\n12,104 \r\n \r\n102,000 \r\n \r\n102,000 \r\n \r\n803,930 \r\n \r\n$ \r\n \r\n7,235,862 $ \r\n \r\n7,326,995 $ \r\n \r\n8,201,538 \r\n \r\n$ \r\n \r\n5,125,848 $ \r\n \r\n5,172,884 $ \r\n \r\n5,393,884 \r\n \r\n188,022 81,514 177,589 330,245 561,614 113,133 650,000 \r\n2,000 4,730 \r\n469,000 52,606 \r\n \r\n193,595 82,389 177,589 341,152 561,614 113,133 650,000 \r\n2,000 4,730 \r\n469,000 52,606 \r\n \r\n261,275 111,847 176,768 354,885 745,604 114,892 536,668 103,307 \r\n7,147 35,259 499,178 4,700 26045 \r\n \r\n$ \r\n \r\n7,756,301 $ \r\n \r\n7,820,692 $ \r\n \r\n8,371,459 \r\n \r\n$ \r\n \r\n-520,439 $ \r\n \r\n-493,697 $ \r\n \r\n-169,921 \r\n \r\n927,230 \r\n \r\n927,230 \r\n \r\n1,014,318 \r\n \r\n-12 212 \r\n \r\n-12 212 \r\n \r\n0 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n394 579 $ \r\n \r\n421321 $======8=4=4~3=97= \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U.S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program State Program Improvement Grants Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Education Agencies Vocational Education - Basic Grants to States \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n. 10.553 \r\n10.555 \r\n \r\nN/A N/A $ \r\n$ \r\n \r\n(2) 458 261 \r\n458,261 \r\n \r\n10.550 \r\n \r\nN/A \r\n$ \r\n \r\n15 033 473 294 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ \r\nN/A \r\n$ \r\n \r\n84.318 84.218 84.367 84.298 84.010 84.048 \r\n \r\nN/A \r\nN/A \r\nN/A N/A N/A N/A \r\n$ \r\n \r\n156,385 1 968 \r\n158,353 \r\n1,833 12,257 53,021 4,243 87,695 10 165 \r\n327 567 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$====80=0=8=6=1 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($15,993) were not maintained separately and are included in the 2004 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Sparsity Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs At-Risk Summer School Program Health Insurance Mentor Teachers National Teacher Certification Preschool Handicapped Program Special Education Low Incidence Grant Lottery Program Computers in the Classroom \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Education, Georgia Department of Implementation of Reading Challenge \r\n \r\nSee notes to the basic financial statements. \r\n \r\n-29- \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n280,867 \r\n \r\n64,107 \r\n \r\n718,992 \r\n \r\n63,478 \r\n \r\n397,431 \r\n \r\n17,302 \r\n \r\n809,588 \r\n \r\n727,101 \r\n \r\n305,154 \r\n \r\n-473 7,617 238,195 33,192 25,929 320,285 13,646 66,819 117,860 38,613 23,319 \r\n \r\n305,869 325,056 362,762 \r\n \r\n19,500 43,585 \r\n4,710 6,262 143,372 25,884 4,000 -272,505 \r\n \r\n6,420 39,460 4,035 14,546 \r\n6,778 4,062 \r\n \r\n51,096 \r\n \r\n560 \r\n \r\n11163 \r\n \r\n$ =====5='=3=7=5=6=37.,., \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nConstruction of a new physical education facility for Gordon Lee Middle/High School; construct and equip a new Science/Math classroom building for Gordon Lee High School; repair, renovate, modify, retrofit, and reroof selected classrooms and buildings; renovate and retrofit for accommodation of computers and other technology equipment for: Chickamauga Elementary School, Gordon Lee Middle School and Gordon Lee High School \r\nConstruction and equipping additional instructional space at Chickamauga Elementary School; Constructing, modifying, renovating and equipping Gordon Lee Middle School; Modifying and upgrading HVAC at WareJewell Activities Building at Gordon Lee High School; Constructing new physical education and athletic facilities at Gordon Lee High School; and acquiring, constructing, repairing improving, retrofitting, upgrading, and equipping other building and facilities useful or desirable in connection therewith, including acquiring any necessary property therefore, both real and personal \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS(3)(4) \r\n \r\nPROJECT STATUS \r\n \r\n$ 3,776,340 $ 3,776,340 $ \r\n \r\n131,696 $ \r\n \r\n2,902,914 Ongoing \r\n \r\n3,575,000 \r\n \r\n3,575,000 \r\n \r\n1,665,863 \r\n \r\n60 044 Ongoing \r\n \r\n$ 7,351,340 $ 7,351,340 $ \r\n \r\n1,797,559 $ \r\n \r\n2,962,957 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of the City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\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: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n427,758 \r\n \r\nCurrent Year \r\n \r\n103 480 \r\n \r\nTotal \r\n \r\n$ ==5=3=1.,,,.2,..38= \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE} ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory Ill \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n316,833 $ 63,337 801,872 68,211 439,602 \r\n \r\n273,041 $ 62,276 743,762 80,030 372,942 \r\n \r\n26,158 919,744 814,765 338,785 336,078 \r\n330,276 14,613 75,569 \r\n \r\n17,258 958,894 1,064,131 249,741 \r\n192,382 203,734 \r\n21,148 45,874 \r\n2,935 \r\n \r\n13,808 $ 188 \r\n54,169 \r\n20,458 \r\n109 17,351 29,854 33,339 \r\n1,381 6,121 \r\n \r\n286,849 62,464 \r\n797,931 80,030 393,400 \r\n17,367 976,245 1,093,985 283,080 \r\n193,763 209,855 \r\n21,148 45,874 \r\n2 935 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n4,545,843 $ 4,288,148 $ \r\n \r\n176,778 $ \r\n \r\n4,464,926 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n130,753 25669 \r\n \r\n158,863 5,588 \r\n \r\n12,526 20,425 \r\n \r\n171,389 26 013 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ ====4,=70=2=,2=6=5 $ 4,452,599 $ \r\n \r\n209,729 $ ==4~,~66~2;.;,3~2~8 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMarch 4, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe City of Chickamauga Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Chickamauga Board ofEducation as ofand for the year ended June 30, 2004, which collectively comprise City of Chickamauga 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation 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. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. \r\n2004YB-10 \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City of Chickamauga Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nThis report is intended solely for the information and use of the management and members of the City of Chickamauga Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n'-fb:.~,~-~ State Auditor \r\nRWH:gp 2004YB-10 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nMarch 4, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of City of Chickamauga Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2004. City of Chickamauga 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 oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofCity ofChickamauga Board of Education's management. Our responsibility is to express an opinion on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City ofChickamauga Board ofEducation's compliance with those \r\n \r\n2004SA-10 \r\n \r\n requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements. \r\nIn our opinion, the City of Chickamauga Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2004. \r\nInternal Control Over Compliance \r\nThe management of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n\u003c:;?......oo ~.~ \r\nR1ssell W. Hinton State Auditor \r\nRWH:gp 2004SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7691-02-01 FS-7691-03-01 \r\n \r\nFurther Action Not Warranted Previously Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Chickamauga Board ofEducation's financial statements was unqualified. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Chickamauga Board of Education did not disclose any reportable conditions related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Chickamauga Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City of Chickamauga Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City of Chickamauga Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510{a) of 0MB Circular A-133 The City ofChickamauga Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n9. Low Risk Auditee The City of Chickamauga Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2002-h2003","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, 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, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. 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(online surrogate); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga--fast","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Chickamauga--fast","Periodicals--fast","Statistics--fast"],"fulltext":"-GA . \r\nA' 8oo'., \r\n'i2. i ' E3~~ \r\n(4' Joo -,10 \r\n \r\n' ' \r\n \r\n1_  j \r\n \r\n'' 1 \r\n \r\n) . \r\n \r\n. ., ',STATE'_()'f,_GEOR~IA 'A,' ,.,, \" \r\n \r\n,. \r\n \r\nD~P.A.~JMENT~~F A~~~TS-AN~ ~C,GQUNT~_: :. _' \r\n \r\n' \r\n-. \r\n-' , ' ' \r\n \r\n\"' \r\n,, \r\n \r\n-/ \r\n' \r\n \r\n,., \". \r\n\" \r\n \r\n' ' \r\n \r\n'' \r\n \r\n. ' \r\n \r\n' ' \r\n \r\n,, \r\n \r\n' \r\n-' \r\n \r\n:::. .!'' \r\n;I \r\n \r\nI, \r\n.-,._ I \r\n \r\n-: I \r\n \r\n J \r\n \r\n.: .... \r\n \r\n \r\n \r\nclTY OF CHICKAMAUGA BOARD OF EDUCATiON \r\n \r\n,, ' \r\n \r\n' ' \r\n \r\n- , \r\n:' .:'.- \r\n \r\n:, ,: 1  cA ;COMPONENT UNIT OF THE . - . . CITY.OF CHICl_(AMAU~A: GEORGiA \r\n \r\n. \r\n \r\n, \r\n \r\n,- , \r\n,, \r\n \r\nr \r\n \r\nI' ' \r\n \r\nREPORT.ON AUplT . \r\n \r\n'bF THE FINANCIAL STATEMENTS \" \r\n \r\n' \r\n \r\n. FOR THE FISCAL YEAR ENDEb' JUNE 30; 2002 \r\n \r\nt \r\n \r\n_ \r\n \r\n_ \r\n \r\n-~,-r :,- 'I \r\n \r\n I \r\n \r\n.,_ \r\n \r\n' \r\n \r\n-,. \r\n \r\n~ \r\n \r\n' \r\n \r\n' \r\n \r\n~ _. \r\n \r\n \r\n \r\nI \r\n \r\n_. 1 \r\n \r\n1 _, \r\n \r\n. ,, \r\n \r\n f  \r\n \r\n. ' \r\n \r\n,: \r\n \r\n,_ \r\n \r\nRU:sse_11 w. Hl~ton \r\n \r\n' . \r\n \r\n, ' \r\n \r\n,, \r\n \r\n...State , \r\n \r\nA- \r\n \r\nu \r\n \r\nd ' \r\n \r\ni \r\n \r\nt \r\n \r\no-r \r\n \r\n,, \r\n \r\n'' \r\n. ' \r\n,. ' \r\n \r\n,, \r\n \r\n'' \r\n \r\n' ' \r\n \r\n' ' \r\n \r\n,_ \r\n \r\nr- ' \u003e \r\n, ,, \r\n \r\n \r\n-' \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY -TABLE OF CONTENTS - \r\n \r\nSECTION! \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDIT1JRES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS-OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND 1YPES AND ACCOUNT GROUP \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND 1YPES \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTTJAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nADDillONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING AND INDIVIDUAL FUND STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nI \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCY FUND \r\n \r\nSCHEDULES \r\n \r\nI SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n2 \r\n4 7 9 \r\n20 22 \r\n24 25 27 28 \r\n30 31 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION! \r\n \r\nFINANCIAL \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\nALLOTMENfS AND EXPENDIT1JRES \r\n \r\nGENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\n4 \r\n \r\nBY PROGRAM \r\n \r\n32 \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\n33 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONfROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONfROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWTIHGOVERNMENTAUDITINGSTANDARDS \r\nREPORT ON COMPLIANCE WI1H REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONfROL OVER COMPLIANCE IN ACCORDANCE WI1H 0MB CIRCULAR A-133 \r\n \r\nSECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECT10NN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Rrn,st:1.1. W. HINTIJN \r\nSTATE AUDITOR (~) a56-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n-:!54 Wa,hing1on S1rce1. S W ~ullc 214 Atlan\\a, Georgia 30334-8400 \r\nMarch 15, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Supenntendent and Members of the City of Clnckamauga Board of Educalion \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have auchted the accompanymg general-purpose financial statements ofthe City ofClnckamauga Board of Education, a component urut of the City ofClnckamauga, Georgia, as of and for the year ended June 30, 2002, as listed m the table ofcontents. These general-purpose financial statements are the respons1b11ity of the City of Clnckamauga Board of Education's management Our responsibility 1s to express an opmion on these general-purpose financial statements based on our audit. \r\nWe conducted our audit m accordance With auditing standards generally accepted m the Uruted States ofAmenca and the standards applicable to financial audits contamed m Government Aud11Ing Standards, issued by the Comptroller General ofthe Uruted States Those standards reqwre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are free ofmatenal misstatement An audit mcludes exarrurung, on a test basis, evidence supporting the amounts and disclosures m the financial statements An audit also mcludes assessmg the accounnng pnnc1ples used and s1gruficant estimates made by management, as well as evaluanng the overall financial statement presentation We believe that our audn provides a reasonable basis for our op1ruon \r\nAs descnbed m the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared usmg certam accounnng pracnces and pohc1es winch, m our optruon, vary m some respects from generally accepted accounling pnnc1ples. These vanances are descnbed as follows \r\n \r\n2002ARL-13 \r\n \r\n * The general-purpose financial statements of the Board ofEducat10n did not contam a \r\nGeneral Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg pnnc1ples. \r\n School act1v1ty accounts mamtamed at the md1V1dual schools are not mcluded m the general-purpose financial statements. To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded in the general-purpose financial statements \r\n,. The Board of Education did not recogrnze as expenditures, m the year ended June 30, 2002, a portion of salanes and the corresponding employer's cost ofrelated benefits earned for contractual semces completed pnor 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 reVJew Conversely, the s1m1lar expenditures and related revenues for contractual serVJces completed prior to June 30, 2001, were unproperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting pnnc1ples, revenues should be recorded when avrulable and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed \r\nThe aggregate effects on the general-purpose financial statements of these vanances or omissions have not been determmed, but are beheved to be material. \r\nIn our oplillon, except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fa.trly, m all matenal respects, the financial position of the City of Chickamauga Board of Educat10n as ofJ11De 30, 2002, and the results of its operations for the year then ended, m confomuty with accounting pnnc1ples generally accepted m the Uruted States of Amenca \r\nIn accordance With Government Auditing Standards, we have also 1Ssued our report dated March 15, 2003, on our consideration of the City ofCluckamauga Board of Education's mtemal control over financial reporting and our tests of its comphance With certam proV1s1ons of laws, regulallons, contracts and grants That report 1s an mtegral part of an audit performed in accordance with Government Aud,tmg Standards and should be read in conJuncllon With tins report m cons1denng the results of our audit \r\nOur audit was performed for the purpose of formmg an op1ruon on the general-purpose financial statements of the City of Chickamauga Board of Education taken as a whole The accompanying \r\ncomb1rung and md1v1dual fund statements (Exhibits E through O and the financial schedules \r\n(Schedules I through 5), which mcludes the Schedule ofExpenditures offederal Awards as reqwred by U S. Office of Management and Budget Circular A-133, Audzts ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a reqmred part ofthe general-purpose financial statements. Such informatJon has been subjected to the \r\n2002ARL-13 \r\n \r\n aud1tmg procedures applied m the aucht of the general-purpose financial statements and m our op1mon, except for the effects of the matters referred tom the third paragraph, such mformal!on 1s fiurly stated, m all matenal respects, m relation to the general-purpose financial statements taken as a whole \r\n \r\nA copy oftlus report has been filed as a permanent record m the office ofthe State Auchtor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\n \r\n---- \\0 . ~ ...Respectfully submitted, \r\n \r\n....tt-- \r\n \r\nll W Hmton \r\n \r\nRWH.as 2002ARL-13 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2002 \r\n \r\nASSETS \r\nGash and C8ah Equivalents \r\nlnvealments \r\nAccounts RecelV8ble \r\nlnventanes Food Donated Commodllles Purchu\u0026d Food \r\nAmount ta be Provided ,n Future Yean; Far Payment of Capital Lease Agreement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n179,353 92 $ 151,582 50 $ \r\n \r\n2,038 22 \r\n \r\n625,527 57 \r\n \r\n50,249 32 \r\n \r\n3,176,791 76 \r\n \r\n24,987 24 \r\n \r\n15,000 00 \r\n \r\n106,70816 \r\n \r\n9,870 02 6,11295 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n829868 73 $ 232,814 79 $ 3,285,538 14 \r\n \r\nLIABILITIES AND FUND EOUfTY \r\nLIABILITIES \r\nAccounts Payable Salanes Payable Explr8d Grant Balances Payable Deferred Revenue Funds Held far Othe111 Capital Lease Agreements \r\nTotal l.Jab1hbes \r\nFUND EQUITY \r\nFund Balances Reserved For lnventones Food Donated Cammadlbes Purchased Food Far Purpoae of Band luue Far SPLOST PrQJ8CIS Unreaervad Undeslgnated \r\nTotal Fund Equity \r\n \r\ns \r\n \r\ns 69,545 92 \r\n \r\n4,635 42 \r\n \r\n36,453 30 \r\n \r\n13,205 10 \r\n \r\n9,098 53 \r\n \r\n$ \r\n \r\ns 69,545 92 \r\n \r\n63,392 35 \r\n \r\n$ \r\n \r\n9,870 02 \r\n \r\n6,11295 \r\n \r\n$ 2,756,679 63 \r\n \r\n528,858 51 \r\n \r\n$ \r\n \r\n760,322 81 \r\n \r\n15343947 \r\n \r\n000 \r\n \r\ns \r\n \r\ns 760 322 81 \r\n \r\n169 422 44 $ 3,285,538 14 \r\n \r\nTotal L!abll1bes and Fund Equity \r\n \r\n$ \r\n \r\n829,868 73 $ 232.814 79 S \r\n \r\nThe notes ta the general-purpaaa finanaal statemenls are an lnlegrel part of thm atatament -2- \r\n \r\n3,285,53814 \r\n \r\n EXHIBIT\"A\" \r\n \r\nFIDUCIARY FUND TYPE AGENCY FUND \r\n \r\nACCOUNT GROUP GENERAL \r\nLONG-TERM DEBT \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n5,353 60 \r\n \r\n$ \r\n \r\n338,328 24 $ \r\n \r\n242,699 88 \r\n \r\n3,852,568 65 \r\n \r\n1,308,750 20 \r\n \r\n146,695 40 \r\n \r\n102,397 13 \r\n \r\n- - - - - - $ _ ____,6\"\"9\"'1\"'06\"-44=- \r\n \r\n9 870 02 6,11295 \r\n69106 44 \r\n \r\n8,678 33 9,490.28 \r\n69106 44 \r\n \r\n$ \r\n \r\n535360 $ \r\n \r\n69 106 44 $ 4,422,681 70 $ 1 741 122 26 \r\n \r\ns \r\n \r\n5,353 60 \r\n \r\n$ \r\n \r\n$ \r\n \r\ns 535360 \r\n \r\n$ \r\n6910644 \r\ns 69106 44 \r\n \r\ns 74,181 34 \r\n36,453 30 \r\n13,20510 9,098 53 5,35360 \r\n6910644 \r\ns 207,398 31 \r\n \r\n118,270 25 34,028 76 7,075 18 5,322 79 35360 6910644 \r\n234157 02 \r\n \r\n$ \r\n \r\n535360 $ \r\n \r\n$ \r\n \r\ns 9,870 02 \r\n \r\n6,11295 \r\n \r\n2,756,679 63 \r\n \r\n528,858 51 \r\n \r\n8,678 33 9,490 28 409,368 70 525,894 50 \r\n \r\n913 762 28 \r\ns 4,215,283 39 $ \r\n \r\n554 53343 1,506,965 24 \r\n \r\n6910644 $ 442268170 $ 1 741 122 26 -3- \r\n \r\n CIJY OF CHICKAMAUGA BOARD Of EDUCATION - WALKER COUNTY COMBINED STATEMENT OF REI/ENUES EXPENPIJVRES AND CHANGES IN FUND BALANCES \r\nALL GOyERNMENTAL FUND JYPES YEAR ENDED JUNE 30 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Rewtnues \r\nEXPENDIJVRES \r\nCurrent lnstrucllon SupportSeMc:es Pupil SeMces Improvement of lnstruc:bonal Servlcea Educabonal Media 5erv..,. General Adnmlstration School AdmlmstratJon Business Admlmstratlon Maintenance and Oparabon of Plan! Studen1 Tranaportabon SeMCet Other Support Services Food Services Operation \r\nCep,tal Outlay Debt Service \r\nPnnclpal lnterul \r\nTotal E,,pendlturet \r\nExcels of Revenues ow,r (under) E,,penditures \r\nOTHER flNANCING SOURCES {USES) \r\nProceeds from General Obl!gabon Bonds Par Value \r\nOperabng Transfers In Oparabng Transfera Out \r\nTolal Other Flnanang Soun:es (I.Jaes) \r\nExceaa of Revenues and Other Finenang Sources over (under) ExpendrbJras and Other fm9nang Uaes \r\nFUND BAV,NCE JULY l \r\nFood lnwnlory- Net Change mPe~od Dona19d Conmod111os Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\ns s 5,916,415 50 \r\n607,547 67 253,227 89 \r\ns s 6 777191 06 \r\n \r\n71 035 97 360,076 76 \r\n480 84961 \r\n911 962 34 \r\n \r\ns s 4,724,345 34 \r\n145,982 87 23,674 67 167,974 43 294,002 66 540,474 61 84,844 56 522,071 52 \r\n3,155 00 6,248 83 \r\n \r\n164,737 27 \r\n60,893 22 57,11788 \r\n6,012 45 17,966 04 \r\n20,738 30 17,765 21 \r\n469,519 69 \r\n \r\ns s 6,512,774 49 \r\n \r\ns \r\n \r\ns 264416 57 \r\n \r\n814 750 06 97 212 28 \r\n \r\ns \r\n \r\ns 11,25000 \r\n \r\n-4 687 31 \r\n \r\n$ \r\n \r\ns 6,562 69 \r\n \r\ns \r\n \r\ns 270,97926 \r\n \r\n489,343 55 \r\n \r\n2,287 31 -1125000 \r\n-I! 962 69 \r\n88,249 59 83,35849 \r\n \r\n1,191 69 -3 377 33 \r\n \r\nfUNP BAIJINCE JUNE 30 \r\n \r\ns \r\n \r\nTha notes to tho general-purpooe ftnanaal llatemon1B era an integral part of this llatemon1 \r\n-4- \r\n \r\ns_ _ 150 322 81 \r\n \r\n1_.6_9,_42.,2,_44_, \r\n \r\n1 \r\n \r\n EXHIBIT\"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30 2001 \r\n \r\n$ 5,987,451 47 s 5,539 64645 \r\n \r\n360,076 76 \r\n \r\n311,092 07 \r\n \r\n$ \r\n \r\n592,623 32 \r\n \r\n1,200,170 99 \r\n \r\n980,11281 \r\n \r\n20 34048 \r\n \r\n754 417 98 \r\n \r\n822 371 53 \r\n \r\n$ \r\n \r\ns s 612,963 80 \r\n \r\n8,302, 117 20 \r\n \r\n7,653~22 86 \r\n \r\ns s 4,889,082 61 \r\n \r\n4,510,840 74 \r\n \r\ns \r\n \r\n55,711 97 \r\n \r\n207,329 39 \r\n \r\n206,876 09 80,782 55 173,986 88 311,968 70 540,474 61 140,556 53 542,809 82 17,765 21 3,155 00 \r\n475,768 52 207,329 39 \r\n \r\n215,043 29 40,99543 175,TT0 55 \r\n238,871.27 397,562 05 83,32112 536,124 25 \r\n23,94566 5,13262 \r\n488,087 95 489,815 59 \r\n \r\n60,321 56 5 72340 \r\n \r\n$ \r\n \r\ns s 263 041 36 \r\n \r\n7,590,565 91 \r\n \r\n7,271,555 48 \r\n \r\ns \r\n \r\ns 349 922 44 \r\n \r\n711 551 29 s \r\n \r\n381667 38 \r\n \r\ns s 2,600,000 00 \r\n \r\n2,600,000 00 \r\n \r\n2,40000 \r\n \r\n15,937 31 s \r\n \r\n-601 047 50 \r\n \r\n-616 984 81 \r\n \r\ns s 2,001,352 50 s 1,998,952 50 \r\n \r\n50,600 00 -623 5TT 50 \r\n-5n9TT50 \r\n \r\ns s s 2,351,274 94 \r\n \r\n2,710,503 79 \r\n \r\n-191,310 12 \r\n \r\n934,263 20 \r\n \r\n1,506,965 24 \r\n \r\n1,694,689 70 \r\n \r\n1,19169 -3 3TT 33 \r\n \r\n-341 63 3 927 29 \r\n \r\ns \r\n \r\n4,2151293 39 s __1.,:,506=.:96::;5:...24. ., \r\n \r\n-5- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL  !NON-GAAP BASIS) \r\nGENERAL AND SPECIAL RE\\IENUE FUNDS \r\nYEAR ENDED JUNE 3Q 2002 \r\n \r\nEXHIBIT \"C\" \r\n \r\nGENERAL FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nREVENUES \r\nSlate Funds F-.ilFunds Taxeo Other Furos \r\nTotal Rewnues \r\n \r\ns s 5 884,445 00 \r\n \r\n5 916,415 50 \r\n \r\n500,00000 295,00000 \r\n \r\n607,547117 253,227 69 \r\n \r\ns s 6 479 445 00 \r\n \r\n6,m,191 06 \r\n \r\nEXPEND[TURES \r\nC1.mmt Instruction SupportServlcos \r\nP\\c)6Servlces \r\nI m - of lnotrudlonal SeMCSI Educational Media Services General Admln!Wwon Sd\u003eool Adnmlstration BlJ81nau Admlni11'1'ation Malnt9nance and Operation of Plant Student Transporta!Jon Se11111:es Other Support Se1111ces Food SeMc:es Operation \r\nTotaJExpe-..as \r\nExceosofRewooellMlf(undor)E,cpendltlns \r\n \r\ns s 4,773,762 00 \r\n \r\n4,724,345 34 \r\n \r\n170.264 00 38,862 00 173.295 00 253,75000 494,602 00 83,0llO 00 63350000 \r\n \r\n145 982.67 23.674 67 167,874 43 294,00266 640474 61 \u00264\u00264456 522,07152 \r\n \r\n3,500 00 \r\n \r\n3155 00 6 246 63 \r\n \r\ns s 6,622.735 00 \r\n \r\n6,512,774 49 \r\n \r\ns s -143i90 00 \r\n \r\n264 416 57 \r\n \r\nOTHER EINANs,IN!, llQURs,ES !Llliiali) \r\nOtherS\u003cut:85 Other Ules \r\nTOia! Other Fnandng Sourooa (Ules) \r\nExcess of Rewnuos and Other Financing 5olat:es \r\ns owr (under) Expendrtina and Other Fnandng U- \r\nEUND BALANCE JULY l ~ l \r\nAdJUO!mfflll Food Inventory - Net Change In Period \r\nDonated CommodPurchaaed Food \r\n \r\ns s s -143.290 00 \r\n489,515 00 71500 \r\n \r\n11.250 00 -4 667 31 6,56269 \r\n270,97926 489,343 55 \r\n \r\nEUNQ BALANs,E JUNE 30 2002 \r\n \r\ns s 3461940 00 \r\n \r\n7601322 81 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\ns 71 919 00 $ 71,03597 \r\n \r\n2n 315 00 \r\n \r\n360 076 76 \r\n \r\n34150000 \r\n \r\n460,649 61 \r\n \r\ns s 690734 00 \r\n \r\n91196234 \r\n \r\ns s 125 999 00 \r\n \r\n164,737 27 \r\n \r\n61,543 00 3098200 \r\n15000 \r\n \r\n60,693.22 57,117.86 \r\n6,01245 17,966 04 \r\n \r\n2,00000 \r\n \r\n20 738 30 17 76521 \r\n \r\n441,229 00 \r\n \r\n469,519 69 \r\n \r\ns s 661,903 00 \r\n \r\n614 750 06 \r\n \r\ns s 8 631 00 \r\n \r\n97,212 28 \r\n \r\ns 2.287 31 \r\n-11,250 00 \r\ns -8,962 69 \r\n \r\ns s 8,631 00 \r\n \r\n66,249 59 \r\n \r\n21,527 00 \r\n \r\n63 35849 \r\n \r\n6,528 00 \r\n \r\n1 191 69 -3 377 33 \r\n \r\ns s 38.888 00 \r\n \r\n169 422 44 \r\n \r\nThe notes to the genora~purpose flnanci..l statements an, an 1nte9ral part of this ata1ement \r\n 7 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe City ofCluckamauga Board ofEducation (School D1stnct) was estabhshed under the Jaws ofthe State of Georgia and operates under the gmdance of a school board elected by the voters and a Supenntendent appomted by the Board The School D1stnct 1s not organized as a separate legal entity and does not have the power to levy taxes or issue bonds Its budget 1s subJect to approval by the City of Clnckamauga, Georgia Accordmgly, the City of Cluckamauga Board of Education 1s determmed to be a component unit of the City of Clnckamauga, Georgia, winch 1s the pnmary government \r\nFUND ACCOUNTING \r\nThe School D1stnct uses funds and an account group to report on its financial pos1Uon and the results ofits operations Fund accountmg 1s designed to demonstrate legal comphance and to aid financial management by segregating transactions related to certam governmental functions or activities A fund 1s a separate accountmg entity wtth a self-balancmg set of accounts An account group 1s a financial reportmg deV1ce designed to proV!de accountab1hty for certam assets and hab1hues that are not recorded m the funds because they do not directly affect expendable available financial resources. \r\nGeneral Fixed Assets are recorded as expenditures m the vanous funds at the ume of purchase A General Fixed Assets Account Group 1s not presently maintained by the School D1stnct. To conform to generally accepted accounting pnnc1ples, a General Fixed Assets Account Group should be maintamed for reportmg the cost of assets acquired by governmental fund types \r\nAlthough \"school acuv1ty accounts\" are maintained at the md1V1dual schools, neither the assets, hab1h!Ies and fund eqwty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements. To conform to generally accepted accounting pnnc1ples, these accounts should be recorded m the general-purpose financial statements \r\nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, m comphance wtth generally accepted accounting pnnc1ples apphcable to governmental uruts, unless otherwtse disclosed m these notes Funds and the account group presented m tins report are as follows \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational ac!IV1tles Governmental Fund Types mclude \r\nGENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those required to be accounted form another fund These transactions relate to resources obtained and used for SerV!ces provided by a board of educat10n. \r\n \r\n-9- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COill,TY EXHIBIT \"D\" NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEME\"ITS \r\nJUNE 30, 2002 \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for maJor capital proJects) that are legaJly restncted to expenditures for specified purposes. These funds are received pnmanly from the Georgia Department of Education and from the FederaJ government to accomplish specific educatlonaJ obJectlves \r\nCAPITAL PROJECTS FUND - the fund used to account for financ1aJ resources to be used for the acqu1S1tlon or construction of maJor cap1taJ fac1ht1es \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government urut m a trustee capacity or as an agent for md1v1duaJs, pnvate orgamzatJons, other government uruts and/or other funds Tius fund mcludes: \r\nAGENCY FUND - the fund used to account for assets held m a fiduciary capacity for other funds, governments, or md!VIduaJs. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP-A financ1aJ reportmg deVIce used to account for cap1taJ lease obhgatJons \r\nBASIS OF ACCOUNTING \r\nThe accountmg and fi.nanc1aJ reporting treatment apphed to a fund 1s determmed by its measurement focus. All govemmentaJ funds are accounted for usmg a current financial resources measurement focus With tins measurement focus, only current assets and current hab1htJes generaJly are mcluded on the baJance sheet Operatmg statements ofthese funds present mcreases (1 e., revenues and other financmg sources) and decreases (1.e., expenditures and other fi.nancmg uses) m net current assets The1r reported fund baJance 1s considered a measure of available spendable resources \r\nL1ab1htJes winch are expected to be financed from available spendable resources are reported as hab1hlles m the governmental funds. Other hab1ht1es, which are not expected to be financed from available spendable resources, are reported m the GeneraJ Long-Term Debt Account Group \r\nAgency funds are purely custod!aJ m nature and do not mvolvc measurement ofresults ofoperations \r\nGovernmental funds are accounted for usmg the mochfied accruaJ basts ofaccounllng under which. \r\nRevenues are recogmzed when susceptible to accrual (1.e , when they become both measurable and available) \"Measurable\" means the amount ofthe transaction can be determmed and \"available\" means collectible w1thm the current penocl or soon enough thereafter to be used to pay hab1ht1es of the current penod The School D1stnct considers receivables collected wtthm sixty days after yearend to be available Property taxes, sales taxes and mterest are considered to be susceptlble to accrual Nonexchange transactions, m winch the School D1stnct gives (or receives) value without \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTI' EXHIBIT \"D\" \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nduectly rece1vmg (or givmg) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes 1s recogruzed in the fiscal year for which the taxes are leVIed Revenue from sales taxes 1s recogruzed in the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recogruzed in the fiscal year in which all ehgib1hty requirements have been satisfied \r\nExpenditures are generally recogruzed when the related fund habihty 1s incurred. \r\nA departure from the above defirutions 1s the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts Dunng fiscal year 2002, a substantial number ofpersonnel ofthe School D1stnct were employed for a one hundred and runety day penod beginnmg ID August 200l and endrng ID early June 2002 Personnel contracts for this employment penod specify that compensation be paid in twelve equal monthly payments beginrung m September 2001 and endmg m August 2002. State grants to fund the State's share of these contracts were d!sbursed from the Georgia Department of Education to the School D1stnct 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 expend1t1Ires by the School D1stnct subsequent to June 30, 2002 Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the srnular expendJtIIres and related revenues for contractual services completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002. Generally accepted accountmg pnnc1ples reqwre that revenues be recorded when available and measurable and that expendJtIIres be recorded when incurred, rather than when funds are received or disbursed. \r\nAgency funds are accounted for using the modified accrual basis ofaccountmg in recogruzmg assets and habihues. \r\nBUDGET \r\nThe City of Chickamauga Board of Education\"s budget 1s a complete financial plan for the School D1stnct\"s fiscal year and 1s based upon estimates of expend1t1Ires together with probable funding sources There 1s no statutory prolub1t1on regarding overexpend1ture ofthe budget at any level The budget for all governmental funds 1s prepared by fund, function and obJect The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnc1ples. \r\nThe budget process begins when the School D1stnct's admm1stratlon prepares a tentative budget for the Board\"s approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once in a newspaper ofgeneral c1rculat1on in the locahty At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes reV1s1ons as \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COl/ND' EXHIBIT \"D\" NOTES TO THE GENERAL-PURPOSE FINANCIAt STATEMENTS JUNE 30. 2002 \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nnecessary and with the approval ofthe City Council adopts a final school budget Tins final budget 1s then submitted, in accordance with prov1s10ns ofthe Quality Basic Educanon Act, OCGA Secnon 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any nme dunng the year All unexpended budget authonty lapses at fiscal year-end \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with ongmal matunt1es of three months or less from the date of acqws1t1on in authonzed financial 1nslltut1ons Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan assoc1allons. \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School D1stnct in nonparncipating interest-earrung contracts (such as certJ.ficates ofdeposit) and repurchase agreements are reported at cost Part1c1patmg mterest-earnmg contracts and money market investments with a maturity at purchase ofone year or less are reported at amortJ.zed cost Both parnc1pat1ng interest-earning contracts and money market investments with \r\na matunty at purchase greater than one year are reported at farr value. The Official Code ofGeorgia Annotated Section 36-83-4 authonzes the School D1stnct to invest its funds and in selecting among \r\noptions for investment or among mstltu0onal bids for deposits, the lnghest rate ofreturn shall be the obJcctlve, given equivalent condinons of safety and hqu1d!ty. Funds may be invested in the following: \r\n(I) Obhgat1ons issued by the State of Georgia or by other states, \r\n(2) Obhgallons issued by the Urutcd States government, \r\n(3) Obhgallons fully msured or guaranteed by the Uruted States government or a Umted States government agency, \r\n(4) Obligations of any corporalion ofthe United States government, \r\n(5) Pnme banker's acceptances, \r\n(6) The Local Government Investment Pool adrmrustered by the State of Georgia, Office of \r\nTreasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obhgat1ons ofotherpohtlcal subd1vis1ons of the State of Georgia \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" NOTES TO Tiffi GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformat1on available. Receivables are recorded when either the asset or revenue recogrullon cntena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts wluch would necessitate the need for an allowance for uncollecl!ble receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Cluckamauga fixed the property tax levy for the 2001 tax digest year (calendar year) on October I, 2001 (levy date). Taxes were due on December 20, 2001 (hen date). Taxes collected w1thm the current fiscal year or withm 60 days after year-end on the 2001 tax digest are reported as \r\nrevenue in fiscal year 2002. The Cluckamauga City Clerk bills and collects the property taxes for \r\nthe School D1stnct and remits the taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operallons amounted to $607,547 67 \r\n \r\nThe tax millage rate levied for the 2001 tax year (calendar year) for the City ofCluckamauga Board of Educauon was as follows (a rrull equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operallons \r\n \r\n~mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local OptJon Sales Tax revenue dunng the year amounted to $592,623.32 and 1s to be used for capital outlay for educal!onal purposes or debt service Tlus sales tax was authonzed by local referendum and the sales tax must be re-authorized at least every five years \r\n \r\nThe City of Cluckamauga (City Government) sold general obhgatJon bonds to provide advance funding for Capital Outlay ProJects associated with issuance ofa Special Purpose Local OptJon Sales Tax (SPLOST) In fiscal year 2002, the School D1stnct proVJded $601,047 50 ofSPLOST proceeds to the City Government for debt service on said general obhgallon debt \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES Inventones of donated food commod11Jes used m the preparallon of meals are reported on the Combmed Balance Sheet at their Federally assigned value. Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commod!tJes are recorded as revenues and expenditures at the IJme commodity items are received. Purchased foods mventones are recorded as expenditures at the llme ofpurchase The mventones reported on the balance sheet \r\n \r\n- 13 - \r\n \r\n CIIT OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nfor donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets \r\nINTERFUND TRANSACTIONS \r\nThe School D1stnct has the follow1Dg types of interfund transactions \r\nReimbursements ofexpenditures 1rutJ.ally made from a fund that are properly applicable to another fund are recorded as expenditures in the re1mbursmg fund and as reductJ.ons of expenditures ID the fund that 1s reimbursed \r\nOperating transfers are recorded for all 1Dterfund transactions other than reimbursements \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\nTotal colwnns on the general-purpose financial statements are captioned \"Memorandum Only\" to mdicate that they are presented only to fac1htate financial analysis Data m these colwnns do not present financial pos1t1on or results of operatJ.ons m confonruty with generally accepted accounting pnnc1ples Neither are such data comparable to a consohdatJ.on. Interfund ehmmatJ.ons have not been made ID the aggregation of th.ls data \r\nNote 2 DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 proVldes that there shall not be on deposit at any time m any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofIDSurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent ofthe pubhc funds being secured after the deduction ofthe amount ofdeposit IDSurance Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe secuntles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance OCGA Section 45-8-11 (b) proV1des an officer holding public funds may, m his d1scretJ.on, waive the requirement for secunty m the case ofoperating funds placed m demand deposit checking accounts. \r\nAcceptable secunty for deposits consists of any one ofor any combination of the following. \r\n(1) Surety bond signed by a surety company dwy qualified and authonzed to transact busmess within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\n \r\nNote 2 DEPOSITS AND INVESTMENTS \r\n \r\n(3) Bonds, bills, notes, certificates of mdebtedness or other direct obhgations of the Umted States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of mdebtedness or other obhgallons of the counties or mumc1pah11es of the State of Georgia, \r\n \r\n(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, proVIdmg that the statute that created the authonty authonzed the use of the bonds for this purpose, \r\n \r\n(6) lndustnal revenue bonds and bonds of development authonlies created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, b1lls, notes, certificates of indebtedness, or other obhga!Jons of a subs1d1ary \r\ncorporation of the Uruted States government, which are fully guaranteed by the Umted \r\nStates government both as to pnncipal and mtcrest or debt obhgatJons 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 Assoc1at1on, and the Federal National Mortgage Assoc1a!lon. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $1,417,803.36. The amounts ofthe total bank balances are classified mto three categones of credit nsk: \r\n \r\nCategory I - Cash that 1s msured (e.g., Federal depository msurance) or collaterahzed With secun!les held by the School District or by the School D1stnct's agent m the School District's name. \r\nCategory 2 - Cash collateralIZed With secunbes held by the pledgmg financial mstltut10n's trust department or agent m the School D1stnct's name \r\nCategory 3 - Uncollateral1zed deposits (Tins includes any bank balance that 1s collateral1zed with secunties held by the pledgmg financial 1nst1tullon, or by its trust department or agent but not m the School D1stnct's name.) \r\n \r\nThe School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\nI \r\n \r\n$ 100,000 00 \r\n \r\n2 \r\n \r\n000 \r\n \r\n3 \r\n \r\n1,317.803 36 \r\n \r\nTotal \r\n \r\n$ 1.417,803,36 \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION- WALKER COUNTY EXHIBIT \"D\" NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\nNote 2 DEPOSITS AND INVESTMENTS \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value of the School D1stnct's total investments was $3,176,791 76 wluch 1s matenally the same as fa.ir value. Tlus investment consisted entirely of funds invested in the Local Government Investment Pool adrmmstered by the State ofGeorgia, Office ofTreasury and Fiscal Services wluch are not required to be categonzed smce the School D1stnct did not own any specific 1denllfiable secunl!es in the pool The mvestment pohcyofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1d1ty Portfolio) does not provide for investment in denvatlves or smular investments A descnptlon ofthe Pnmary L1qwd!ty Portfolio 1s as follows: \r\nThe Pnmary L1qu1d1ty Portfolio consists of Georgia Fund I, wluch 1s a combmat1on local and state government investment pool, and Fund 6 Georgia Fund l 1s a stable net asset value mvestment pool wluch follows Standard and Poor's cntena for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent With Rule 2a-7 ofthe Investment Company Act of 1940 and is coDS1dered to be a Rule 2a7 hke pool. The pool's pnmary ob3cctives are safety of capital, mvestment mcome, liqwd1ty and d!vers1fica11on while mamla!mng pnnc1pal ($1.00 per share value). Net asset value 1s calculated weekly to ensure stability The pool d1stnbutes earmngs (net of management fees) on a monthly basis and values part1c1pant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash eqwvalents and investments are reported at cost wluch approxlOlates fmr value The pool does not issue any legally bmdmg g11armtees to support the value ofthe shares Paruc1patlon m the pool 1s voluntary and deposits consist of funds from local governments; operatmg and trust funds of Georgia's state agencies, colleges and wuvers11!es; and current operal!ng funds of the State of Georgia's General Fund \r\nInvestments m Georgia Fund 1 and Fund 6 are directed toward short-term mstruments such as U. S Treasury obligations, secunl!es issued or g11armteed as to pnnc1pal and interest by the U S Government or any of its agencies or 1nstrumentali11es, banker's acceptances and repurchase agreenients The weighted average matunty of Georgia Fund 1 may not exceed 60 days The weighted average matunty for Georgia Fund 1 on June 30, 2002, was O 12 years The average mvestment duralion for Fund 6 on June 30, 2002, was 0.75 years. \r\nNote 3 NON-MONETARY TRANSACTIONS \r\nThe School D1stnct receives food commod!l!es from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commod!l!es are recorded at their Federally assigned value See Note 1 - Inventories \r\nNote 4: RISK MANAGEMENT \r\nThe School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and destruction of assets, errors or om1ss1ons, job related illness or m3unes to employees, acts of God and unemployment compensal!on \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEME!-.\"TS \r\nJUNE 30. 2002 \r\n \r\nNote 4 RISK MANAGEMENT \r\n \r\nThe School D1stnct has obtamed commercial msurance for nsk ofloss associated with torts. assets, errors or om1ss10ns,1ob related illness or mJunes to employees and acts ofGod The School D1stnct has neither s1gruficantly reduced coverage for these nsks nor mcurred losses (settlements) which exceeded the School D1stnct\"s insurance coverage m any of the past three years \r\n \r\nThe School D1stnct 1s self-msured with regard to unemployment compensation claims The School District accounts for claims w1thm the General Fund with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated The School D1stnct has not mcurred any hab1hties for unemployment compensation dunng the past two fiscal years. \r\n \r\nThe School D1stnct has purchased a surety bond to proVIde additional insurance coverage as follows \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSupenntendent \r\n \r\n$ 10,000.00 \r\n \r\nNote 5. GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Cmckamauga Board of Education has entered mto a lease agreement as lessee for the purchase oftwo buses Tins lease agreement qualifies as a capital lease for accounting purposes and, \r\ntherefore, has been recorded at the present value of the future mirumum lease payments as of the \r\ndate of its mception \r\n \r\nThe changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows. \r\n \r\nBalance July I, 2001 \r\n \r\nCapital Leases \r\ns 69,106 44 \r\n \r\nDeductions \r\n \r\nLease Payments \r\n \r\n000 \r\n \r\nBalance June 30, 2002 \r\n \r\n$ '22.1~1i4 \r\n \r\nAt June 30, 2002, payments due by fiscal year which includes pnnc1pal and mterest for these Items are as follows \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 5 GENERAL LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\n2003 2004 2005 \r\n \r\n$ 26,044 96 26,044 96 26,044 96 \r\n \r\nTotal Pnnc1pal and Interest \r\n \r\n$ 78,134.88 \r\n \r\nDeduct Imputed Interest \r\n \r\n9 028 44 \r\n \r\nNet Present Value of Future M1rumurn Lease Payments \r\n \r\n$ 69 )06 44 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe School D1stnct has recogruzed revenues and expenditures m the amount of $62,641 50 for health insurance and retrrement contnbutlons patd on the School D1stnct's behalf by the following State Agencies \r\n \r\nGeorgia Department of Education P111d to the Georgia Department of Comrnuruty Health For Health Insurance ofNon-Certtfied Personnel In the amount of$54,813.50 \r\n \r\nOffice of Treasury and Fiscal SCTV1ces Patd to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of$7,828.00 \r\n \r\nNote 7 CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies Thts could result m requests for reimbursement to the grantor agency for any expenditures winch are chsallowed under grant terms The School Dlstnct believes that such chsallowances, 1f any, will be umnatenal to its overall fmanc1al position \r\n \r\nI ' \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COU\u003e,TY \r\nNOTES TO TIJE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 8 RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substan!Ially all teachers, adnumstrative and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), wluch 1s a cost-shanng multiple employer defined benefit pension plan. TRS provides service retirement, d1sab1hty retirement and survivors benefits for its members m accordance With State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE \r\nEmployees ofthe School Distnct who are covered by TRS are reqwred by State statute to contnbute 5% ofthe1r gross earnings to TRS The School Dlstnct makes monthly employer contnbut1ons to TRS at rates adopted by the TRS Board of Trustees m accordance With State statute and as adVIsed by therr independent actuary. The requrred employer contnbution rate 1s 9 24% and employer \r\ncontnbutlons for the current fiscal year and the preceding two fiscal years are as follows. \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contnbutlon \r\n \r\n2002 2001 2000 \r\n \r\n100% 100% I 000/o \r\n \r\n$ 398,215 59 $ 445,025 85 $ 413,375 26 \r\n \r\n- I9 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2002 \r\n \r\nASSETS Cash end Cash Equivalents Investments \r\nAccounts Receivable \r\nlnventones Food Donated Commodl!Jes Purchased Food \r\nTotal Assets \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n60,707 73 $ \r\n \r\n9,098 53 \r\n \r\n9,870 02 6 112 95 \r\n \r\n$ \r\n \r\n16 690 10 s_ _..e_oo=0_s.3.. \r\n \r\nLIABILITIES AND FUND EQUITY \r\nUABILJJIES \r\nAccounts Payable Selanes Payable Expired Grant Balances Payable Deferred Revenue \r\nTotal Uabllrtles \r\nFUND EOUIJY \r\nFund Balances Reserved For Inventories Food Donated Commodmes Purchased Food Unreserved Undes1gneted \r\nTotal Fund Equrty \r\nTotal Llebillbes end Fund Equrty \r\nSee notes to the genera~purpose finencael statements \r\n- 20 - \r\n \r\n$ \r\n \r\n2,813 48 \r\n \r\n27,956 70 \r\n \r\n$ \r\n \r\n$ \r\n \r\n30 770 18 $ \r\n \r\n9 098 53 9 098 53 \r\n \r\n$ \r\n \r\n9,870 02 \r\n \r\n6,112 95 \r\n \r\n29 937 55 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n45,920 52 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n76 eoo 10 s _ _ _9.;0=9=8;;;53~ \r\n \r\n EXHJBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n8,523 64 $ \r\n \r\n73,252 60 $ \r\n \r\n151,58250 $ \r\n \r\n117,678 95 \r\n \r\n50,249 32 \r\n \r\n50,249 32 \r\n \r\n15,000 00 \r\n \r\n15,000 00 \r\n \r\n54300 \r\n \r\n9,87002 6 112 95 \r\n \r\n8,678 33 9 490 28 \r\n \r\n$ \r\n \r\n23,52364 $ \r\n \r\n123,501 92 $ \r\n \r\ns_ _ 232181410 \r\n \r\n1:.:36=,390;::;.56:;::.. \r\n \r\n$ \r\n \r\n1,821 94 \r\n \r\n8,496 60 \r\n \r\n13,205 10 \r\n \r\n$ \r\n \r\n23,52364 \r\n \r\ns \r\n \r\n4,63542 s \r\n \r\n8,322 48 \r\n \r\n36,453 30 \r\n \r\n32,528 76 \r\n \r\n13,205 10 \r\n \r\n6,858 04 \r\n \r\n9,098 53 \r\n \r\n5,322 79 \r\n \r\ns \r\n \r\n63 392 35 s \r\n \r\n53,032 07 \r\n \r\n$ \r\n \r\n9,870 02 $ \r\n \r\n8,678 33 \r\n \r\n6,112 95 \r\n \r\n9,490 28 \r\n \r\n$ \r\n \r\n0 00 $ _---'1~2.:!,3,~50:c,1_,9:,e,_2 \r\n \r\n153 439 47 \r\n \r\n65 189 88 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n123,501 92 $ \r\n \r\n169 422 44 $ _ _..8.,.,3,:358=c4c:..9 \r\n \r\n$ \r\n \r\n23,523 64 $ \r\n \r\n123,501 92 $ \r\n \r\n232 814 79 s _ _1_36..,,,:;;39;;;:o_se_ \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL RE\\IENUE FUND \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDlil/RES \r\nCurrent lnstrucbon Support SeMC\u0026S Pup1ISeMCeS Improvement of lnstrucl!onal SeMCeS Educational Mocha Serv,oes General Adrrumslrabon Maintenance and Operation of Plant Student Transporta11on Serv,ces Other Support ServlC89 Food Services Operation \r\nDebi Service Pnnapal Interest \r\nTotal Expendrtures \r\nExcess of Revenues over (under) Expendrtures \r\nOTHER FINANCING SOURCES rUSESl \r\nOperating Transfera In Opera1mg Transfera Out \r\nTotal Other F1nanang SotJroes (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY l \r\nAdjus1ments Food Inventory - Not Change ,n Penod \r\nDonated CommodrtJes Purchased Food \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\nSee notes to the general-purpose financial Bla1ements \r\n \r\n-22- \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n36,48600 $ \r\n \r\n107,192 36 \r\n \r\n355 TT8 88 \r\n \r\n$ \r\n \r\n499457 24 $ \r\n \r\n34 549 97 34 54997 \r\n \r\n$ \r\n \r\n34,54997 \r\n \r\n$ \r\n \r\n469,519 69 \r\n \r\n$ \r\n \r\n469 519 69 $ \r\n \r\n$ \r\n \r\n29937 55 $ \r\n \r\n34 54997 000 \r\n \r\n$ \r\n \r\n29,937 55 $ \r\n \r\n000 \r\n \r\n18,16861 \r\n \r\n000 \r\n \r\n1,191 89 -3 377 33 \r\n$ 45 920 52 s_____o_oo_ \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30 2001 \r\n \r\n$ \r\n \r\n$ \r\n \r\n252,88440 \r\n \r\n- - - - - - $_---'1=25=0=7=0~7~3 \r\n \r\n$ \r\n \r\n252,884 40 $ \r\n \r\n125 070 73 $ \r\n \r\n71,03597 $ 360,07676 480 849 61 \r\n \r\n62,56522 311,092 07 424 495 03 \r\n \r\n911 962 34 $ _ __;.7,,:;98e.:.,15:,,.2.:,:32~ \r\n \r\n$ \r\n \r\n130,187 30 \r\n \r\n60,893 22 57,117 88 \r\n6,012 45 96086 $ \r\n \r\n$ \r\n \r\n255 171 71 $ \r\n \r\n$ \r\n \r\n-2 287 31 $ \r\n \r\n$ \r\n17,005 18 20,738 30 17,765 21 \r\n55 50889 $ 69562 04 $ \r\n \r\n164,737.27 $ 60,89322 57,117 88 6,012 45 17,966 04 20,738 30 17,765 21 \r\n469,51969 \r\n814 750 06 $ \r\ns 97 212 28 \r\n \r\n148,699 12 \r\n64,286 56 7,147 73 9,168 00 11,40136 \r\n23,94566 2,00000 \r\n468,374 74 \r\n60,321 56 5 723 40 \r\n801 06813 \r\n-2 915 81 \r\n \r\n$ \r\n \r\n2,287 31 \r\n \r\n$ \r\n \r\n2,287 31 $ \r\n \r\n14,834 96 \r\n \r\n-1125000 \r\n \r\n-85434 96 \r\n \r\n$ \r\n \r\n2 287 31 $ \r\n \r\n-1125000 $ \r\n \r\n-e 962 69 s_ _-=50=eoo==oo~ \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n58,312 04 S \r\n \r\n88,249 59 $ \r\n \r\n-53,515 81 \r\n \r\n000 \r\n \r\n65,189 88 \r\n \r\n83,35849 \r\n \r\n133,288 64 \r\n \r\n1,19169 \r\n-3 377 33 \r\n \r\n-341 63 3927 29 \r\n \r\n$ \r\n \r\n000 S \r\n \r\n123 501 92 $ \r\n \r\ns_ _ 159 422 44 \r\n \r\n.;:;83::..3:::.58=49::.. \r\n \r\n-23- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING BALANCE SHEET \r\nCAPIIAL PROJECTS FUND \r\nJUNE 3Q 2002 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable \r\nTotal Assets \r\n \r\nBOND PROCEEDS \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS JUNE 30. 2002 JUNE 30 2001 \r\n \r\n$ \r\n \r\n2,35945 $ \r\n \r\n2,35945 $ \r\n \r\n61,096 65 \r\n \r\n$ 2,757,000 86 \r\n \r\n419,79090 \r\n \r\n3,176,791 76 \r\n \r\n771,385 35 \r\n \r\n106 708 16 \r\n \r\n106 708 16 \r\n \r\n101 781 20 \r\n \r\nS 2,757,000 86 $ 528.858 51 S 3,285.859 37 S 934 263 20 \r\n \r\nLIABILITIES AND FUND EQUITY \r\n \r\nLIABILITIES Cash Overdraft \r\n \r\n$ \r\n \r\n321.23 \r\n \r\nFUND ECUIJY \r\nFund BalanCB8 Reserved For PulJ)Ol88 of Bond Issue For SPLOST Projects Unreserved Undea:gnated \r\nTotal Fund Equ:ty \r\n \r\n$ 2,756,679 63 \r\n$ \r\n000 \r\ns $ 2,756,679 63 \r\n \r\ns \r\n \r\n321 23 \r\n \r\ns $ 2 756 679 63 \r\n \r\n528,858 51 \r\n \r\n528,858 51 \r\n \r\n000 \r\n \r\n000 \r\n \r\ns 528,858 51 $ 3,285,538 14 \r\n \r\n408,368 70 525,894 50 \r\n000 \r\n934,263 20 \r\n \r\nTotsl Llab:lrlies and Fund Equ:ty \r\n \r\n$ 2,757,000 86 $ \r\n \r\n528,858 51 S 3,285.859 37 $ 934 263 20 \r\n \r\nSee notes to the general-purpose financial alBlemBnts \r\n \r\n-24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAP!TAL PROJECTS FUND \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nEXHIBIT \"H\" \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTola! Revenueo \r\nEXPEND!TURES \r\nCurrent \r\nSupportSelvlcea \r\nBu11neaa Adnmlslrabon Capital Outlay \r\nBulchng and Bu1fdlng Improvements Eqinpmont \r\nTotal Expendltunls \r\nExcesa of R.,_,uoa over (under) Expenditures \r\nOlli!;R FINANCING SQURCES (USES! \r\nProceeds from Genorot Obtlgaton Benda Par Value \r\nOperabng Trans\"\"\" In OperatJng Transfers Out \r\nTotat Other Flnanang Sources (Usea) \r\nExceaa ol Revenueo and Other Flnancng Soun:es over (under) Expendtturea and Other Financing \r\nUsea \r\nFUND BALANCE JULY 1 \r\n \r\nBOND PROCEEDS \r\n \r\nSPECIAL PURPOSE LOCAL OPTION \r\nSALES TAX \r\n \r\nTOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 \r\n \r\n$ \r\n \r\n30,521 40 \r\n \r\n$ 592,623 32 $ 592,623 32 \r\n \r\n634,025 06 \r\n \r\n$ \r\n \r\n8 952 29 \r\n \r\n1138819 \r\n \r\n20 34048 \r\n \r\n5179889 \r\n \r\n$ \r\n \r\n8,952 29 $ \r\n \r\n604 011 51 s 612,963 80 $ 716.345 35 \r\n \r\n$ 55,711 97 \r\n83 93065 $ 123 398 74 \r\n$ 263 041 36 s \r\n$ -254 089 07 $ \r\n \r\n$ 000 \r\n000 $ 604 011 51 $ \r\n \r\n55,711 97 $ 83,93065 123,398 74 263 041 36 $ \r\n349 922 44 $ \r\n \r\n66250 421,436 59 \r\n68 37900 490 478 09 225,867 26 \r\n \r\n$ 2,600,000 00 2,400 00 $ \r\ns 2,602,400 00 $ \r\n \r\n$ -60104750 \r\n \r\n2,600,000 00 2,400 00 $ \r\n-601 047 50 \r\n \r\n264,894 45 -837,871 95 \r\n \r\n-601 047 50 $ 2,001,352 50 $ -572 977 50 \r\n \r\ns 2,348,310 93 $ \r\n408,368 70 \r\n \r\n2,964 01 $ 2,351,274 94 $ -347, 110 24 \r\n \r\n525,894 50 \r\n \r\n934,263 20 \r\n \r\n1 281 373 44 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n528 858 51 $ 3,i!8S,S38 14 $ 934,263 20 \r\n \r\nSae notea 10 the g_,,1-purpose finandal atataments \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nSTATEMENT Of CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2002 \r\n \r\nEXHIBIT\"!\" \r\n \r\nVAN PROOYEN FELLOWSHIP FUND \r\nASSETS Cash and Cash Equivalents \r\n \r\nBALANCE JULY 1, 2001 \r\n \r\nBALANCE ADDITIONS DEDUCTIONS JUNE 30, 2002 \r\n \r\n$ \r\n \r\n35360 $ 5 00000 $ \r\n \r\n000 $ \r\n \r\n5 353 60 \r\n \r\nLIABILmES Funds Held for Others \r\n \r\ns___353=-so-- s 5ooo oo s \r\n \r\no oo s _ _ _5._3_53._s_o_ \r\n1 \r\n \r\nSee notes to the general-purpose flnanaal s1a1ements -27 - \r\n \r\n CITY Of CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgnaJltule, U S Department of Child NutrttlOn Cluster \r\nPass-Through From Georgl8 Department of Education Food and Nulr1tlon Program \r\nFood Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrlbon Cluster \r\nOther Programs Pua-Through From Georgia Department of Education \r\nFood and Nutrition Program Food Dlslrfbullon Program (1 ) \r\nTotal U S Departmant of Agnrultln \r\nEducation, U S Depa11ment of \r\nSpecial EdLIC8llon CIUSler Pass-Through From Geo,vla Depar1menl of Education Individuals with Dlsablllties Education Ad Part B - Special EdLIC8llon Capaaty Building lmprowement Flow Through Pleschool \r\nTotal Special Education Cluster \r\nOther Prog1'1!11ms Pass-Through From Georgia Depar1menl of Education \r\nComprehenalve Sdlool Reform DerrM um a w Protect Elementary and Seconclary Educabon Ad \r\nT1tle I Grants lo Local Educational Agendeo \r\nT1tle II Eisenhower Profaulonal Dewloprnant \r\nTIiie VI \r\nIMOVIUon Program Class Slza Reduction VocabOnal Education - Baaic Grants to States High School Program \r\nBaalc Grant \r\nTotal U S Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10 553 10 555 \r\n \r\nNIA \r\n \r\ns 15,474 13 \r\n \r\nNIA \r\n \r\n71 591 77 s \r\n \r\ns s 87,065 90 \r\n \r\n(2) 449 393 23 (3) \r\n449,393 23 \r\n \r\n10 550 \r\n \r\nNIA \r\n \r\n20,128 48 \r\n \r\ns s 107,192 36 \r\n \r\n20 126 48 489,519 89 \r\n \r\n114 027 114 027 114 173 \r\n \r\nNIA s 1,40000 s \r\n \r\nNIA \r\n \r\n89,272 89 \r\n \r\nNIA \r\n \r\n3 828 00 \r\n \r\ns 74,30089 s \r\n \r\n2,735 09 (3) 89,272 89 \r\n3 961 17 (3) \r\n75,989 15 (3) \r\n \r\n114 332 \r\n114 010 114281 114 298 114 340 \r\n114 048 \r\n \r\nNIA \r\n \r\n52,00000 \r\n \r\n52,000 00 \r\n \r\nNIA \r\n \r\n85,445 17 \r\n \r\nNIA \r\n \r\n31,840 60 \r\n \r\nNIA \r\n \r\n3,152.20 \r\n \r\nNIA \r\n \r\n15,505 00 \r\n \r\n~.44517 \r\n32,459 55 (3) \r\n3,152 20 15,605 00 \r\n \r\nNIA \r\n \r\n1084064 \r\n \r\ns 252,884 40 s \r\n \r\n10 640 64 255171 71 \r\n \r\nTotal Federal Flnandal Asu.tance NIA  Not Aviulable \r\n \r\ns 360,076 76 s \r\n \r\n724 891 40 \r\n \r\n-28- \r\n \r\n C)TY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE Of EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Sdledule of ExDendrtures of Federal Awards \r\n(1) The amounts shown for the Food OlsbibuUon Program represents the Federally assigned value of nonmonetary assistance for donated commodmes recerved and/or consi..med by the system dlllng lhe a.nrent fiscal year \r\n(2) Expenditures tor the Sdlool Breakfast Program were not nuuntalned lel)arately and are lnduded In the 2002 Nation.al SchOOI Lunch Program \r\n(3) Expenchtures for this program Include State, and/or Other Foods Expenditures are not malntalned by hmd source \r\nMaJor Programs are klen1ltle\u003cI by an asterisk (\") In front of the CFDA number \r\nTho Schoot Ols1!1tl did not provide Fecler,il Aulstanc:e to any S u b ~ \r\nThe accompanying achedule of expenclJtures of Federal awards Includes the Feclaral grant activity of the Clly of Chld\u003camauga Boanl of Education and lo pn,sentecl on the modlfled acaual bul of aw,unbng which \" the bHls of aocountJng used In the presentation of the ve-al-purpose financial statements \r\n \r\nSee notes to the genaral-purpoae financial ,tatementa \r\n \r\n-29  \r\n \r\n CITY OF CHICKAMAUGA BOARD Of EDUCATION WALKER COUNTY \r\nSCHEDULE Of STATE RE\\/ENUE YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Communrty Alfa\u003ca, Georgia Department of Local Aulstance Gran\\ (1) \r\nEducabon, Georgia Department of Quelrty Basic Educallon Daecl lnstructJonal Coo\\ Kinder!larten Program Kindergarten Program - Ear1y Intervention Program Prima1y Grades (1-3) Program Primely Grades - Early lnter,ent,on (1-3) Program Upper ElaiMntary Grades (4-5) Program Upper EleiMntary Grades lntervenbon (4-5) Program Middle School (6-8) Program High School General Educa11on (9-12) Program Vocational Laboratory (9-12) Program Sluden\\s wl\\h Dlsabdibes Category II Category Ill Category IV Gifted Student  Ce1egory VI Remedial Educa\\lon Program Mematlve Education Program 20 Days Addibonal lns1rudlon Medra Center Program Staff end ProfeSSlonal DeW!lopment Indirect Cos\\ Categorical Grants Sparsity Nin,ngSernces PnnclpalSupplemenla Vocational ~ Educa\\lon Equallzallon Finl1ng Grant Food Services Other State Programs Heatth Insurance Preachool Handicapped Program Special Education Low Incidence Grant Lottery Programs AealltMI Technology Computers n the Classroom \r\nOffice of Treaaury end FISCIII Serv,ces Public School Employees Retnment \r\nCONTRACTS Educabon, Georgia Department of After SchooJ Programs Reading Fnt Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \u003c40,000 00 \r\n \r\n$ \u003c40 000 00 \r\n \r\n259,197 00 9,950 00 \r\n692,715 00 \u003c40,405 00 349,411 00 53,669 00 923,2\u003c40 00 811,4\u003c40 00 \r\n251,392 00 \r\n \r\n15,376 00 150,311 00 \r\n67,844 00 234,591 00 \r\n3,568 00 75,014 00 41.213 00 127,204 00 22,798 00 978,212 00 \r\n \r\n20,00000 43,822 00 \r\n5,048 00 9,097 00 588.266 00 \r\n \r\n$ 36,486 00 \r\n \r\n54,81350 7,164 00 \r\n10,046 00 \r\n \r\n3,482 54 31,06743 \r\n \r\n7,828 00 \r\n \r\n259,197 00 9,950 00 \r\n692,715 00 40,405 00 349,411 00 53,669 00 \r\n923 2\u003c40 00 811,4\u003c4000 251,392 00 \r\n15,376 00 150,311 00 \r\n67,844 00 234,591 00 \r\n3,568 00 75,014 00 41,213 00 127,204 00 22,798 00 978,212 00 \r\n20,00000 43,822 00 \r\n5,048 00 9,097 00 588,266 00 36,486 00 \r\n54 81350 7,164 00 \r\n10 046 00 \r\n3,482 54 31 067 43 \r\n7,828 00 \r\n \r\n10,781 00 12,000 00 \r\n \r\n10,781 00 12 000 00 \r\n \r\n(1) The purpoae of the funds ere to construct e physleaI educa\\lon fadIlly \r\n \r\nSee notes to the general-purp088 linanaal stataments \r\n \r\n-30- \r\n \r\n CITY OF CHICKAMAUGA BOARD Of EDUCATION - WALKER COUNTY SCHEDULE OF APPRO\\IED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 3Q 2002 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nConalrudJon of a oow physical education fadl/ty \r\nfor Gordon Lee Mkkfte SdlOol, construcl and equrp a new Science/Math dawoom bulldlng for Gonlon Lee Hlgh School, ,-Ir, 19110Y81e, modify, retrofit and reroot selected da1Sf'00111S and bu.tidings rvnovate and retrofit for acammodatlon of computers and \r\nother technology for and purchaalng tecmology \r\nequipment for, Chickamauga Elementary School, Gonlon Lee Middle School and Gonion Lee High School \r\n \r\nConslrucllng Ind equipping eddltionlll \r\n \r\nlnstrudlonal lll\u003eOCO at Cllicl\u003camauga Elementary Scl1oal, cone1rudlng, modifying, renovating \r\n \r\n-cand eq11pp,ng Gonlon Lee Mcldle School, \r\nmocflf)jng and uporadmg HVAC at W.,.._ . - 1 AdMtles Buidlng It Gordon Leo High School, a,nstructing MW ~ I education \r\n \r\nand \r\n \r\nfacilities at Gonlon Leo High \r\n \r\nSchool, aid acq11nng, constructing, repa!rfng \r\n \r\nlml)tO\\llnl,, 1o1Joflttu,g, upgrading, and \u0026q\\Jlpp,ng \r\n \r\n- building and facil- useful or deu'ablo 1n a\u003emedlon therewith 1ndudmg acqulnng any \r\n \r\nnecessary property-. both real Ind \r\n \r\npor,onal \r\n \r\nORIGINAL \r\nESTIMATED COST 11) \r\n \r\nCURRENT ESTIMATED \r\nCOSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3l (4l \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS(3l \r\n \r\nPROJECT STATUS \r\n \r\n$ 3,776,34000 $ 3,776,34000 $ 207,32939 $ 2,560,60450 Ong01ng \r\n \r\n3,575,000 00 \r\n \r\n3,S75,000 00 \r\n \r\n0 00 --~0~00~ Ongoing \r\n \r\nS 71351,34000 $ 713~1,34000 $ 207,32939 $ 2,580,604 50 \r\n \r\n(1) The School Dlslrlct's original cost osbmate 81 specified In Iha l9liOfutlon calling for Iha Imposition of Iha Local Option Sa!eaTax. \r\n \r\n(2) The School Dlslrlct'\u0026 runent estimate o f - cost for Iha projeda lnc:looes all cost !ram project Inception to caupleHCA, \r\n \r\n(3) The II018rO of the Crty of Chickamauga approved the .....,.nlon of a 1II lllleS tax to fund the above projeda and ratJra 81S\u003c\u003eCilted debt lnam1'd by the City of Ctaduimauga C i t y ~ on the School Dlstricl'\u0026 beha~ Amounts -ided fer Iha prqecli may Uldude Ille\u003e tax proceed\u0026, -  local - r t y taxao and/0\u003c other fir.do .,... Iha lie of Iha P'oie\u003c:I\u003e \r\n \r\n(4) In addition to the expend...... ahcMn above, Iha School Dlstrld has Incurred for Iha above projects ae follows \r\n \r\nto prtJlllde advance funding \r\n \r\nPrior Yaaro \r\n \r\n$ 304,197 92 \r\n \r\nCtarent Year Total \r\n \r\n4104750 \r\ns 345 245 42 \r\n \r\n. - o Seo \r\n \r\nto Iha genoral-lJurJ\u003eo ftnar,dal statements \r\n \r\n 31  \r\n \r\n ctIX Of CHICKAMAUGA BOARD OF EOUCATION - WALKER COUNTY \r\nGENERAL FUND - QUALITY BASIC EDUCAJION PROGRAM !CBEl \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM VEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\nDhct lnstrucllonal Programs Klnde,val1en Program Kildergarten Program-Earty lrrtarvention Program Primary Grades (1-3) Program Primary Gnuleo-Earty Intervention (1-3) Program Upper Elemanlary Grades (4-5) Progrmn U - Elementary Gradel-Earty lnle!wntlon (4-5) Program Middle School (6-8) Program High School General Educabon (11-12) Program Voca11onal Laboratory (11-12) Program \r\nStudanu with DiaablllUes \r\nCo1egorylll Gifted Student - Co1egory VI Remod1\u0026I Education Program Allemative EdUCltion Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Ce- Program Slaff and Professional Developmen1 \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES OPERATIONS \r\n \r\nTOTAL \r\n \r\ns \r\n \r\ns s 268,573 00 \r\n \r\n201,098 15 \r\n \r\ns 7,735 73 \r\n \r\n208,833 88 \r\n \r\n10,310 00 \r\n \r\n10 88429 \r\n \r\n130 00 \r\n \r\n11 01429 \r\n \r\n717,TT2 00 \r\n \r\n752,590 34 \r\n \r\n38,177 22 \r\n \r\n790 767 56 \r\n \r\n41,887 00 \r\n \r\n46,882 75 \r\n \r\n65000 \r\n \r\n47 612 75 \r\n \r\n362,026 00 \r\n \r\n399,372 01 \r\n \r\n16 754 72 \r\n \r\n416,125 73 \r\n \r\n85,634 00 956,835 00 840,791 00 250,465 00 241,979 00 \r\n243,0TTOO 3,697 00 \r\nTT72700 \r\n \r\n49,875 47 952,974 28 1,038,728 90 266,947 60 \r\n200,90840 193 901 05 \r\n22,19668 62 794 42 \r\n \r\n870 74 38,68093 51 480 59 26,648 55 \r\n5 230 45 4,665 04 \r\n6,060 53 \r\n \r\n50,746 21 989,835 21 1,088,189 49 295 594 35 \r\n206,138 85 196,766 09 \r\n22,196 68 70 674 95 \r\n \r\n$ \r\n \r\n4,060,673 00 $ 4,199,234 54 $ 199,262 50 $ 4,398,497 04 \r\n \r\n131,605 00 23,622 00 \r\n \r\n137,8TT36 443862 \r\n \r\n24,316 58 19 169 37 \r\n \r\n162193 94 23 626 99 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n4.236,000 00 $ 4 341 548 52 $ 242 768 45 $ 4 584 316 97 \r\n \r\n(1) Com~ of Stale Funds plus Local Five MIii Share \r\n \r\nSee notes to the general-purpose flnanctal statemen1s \r\n \r\n- 32 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY GENERAL FUND  QUALITY BASIC EDUCATION PROGRAM CQBEl ALLOTMENTS AND EXPENDITURES  BY SlTE YEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE \"5\" \r\n \r\nIDif \r\nGordon Lee Middle School Gordon Lee H,gh School Chickamauga Elementary School Central Office (AltematJVe EducatJon Program) \r\nTOTAL \r\n(1) Compnsed of State Funds plus Local FIVe Mill Share \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n1,065,909 00 $ \r\n \r\n1,133,91460 \r\n \r\n1,351,566 00 \r\n \r\n1,599,676 79 \r\n \r\n1.585,371 00 \r\n \r\n1,664,905 65 \r\n \r\n77 727 00 \r\n \r\n$ \r\n \r\n4,0801573 00 $~....,41c3'\"\"98..,,4_9_7_04.,. \r\n \r\nSee notes to the general-purpose financial statements \r\n- 33- \r\n \r\n SECTTONil COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSF.11 W. HINTON \r\n5TA.TE AUDITOR (4(),1) 656-217 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WJshmglon S1rcc1, SW Sunc 214 A1lan1J, Georgia 30334-8400 \r\nMarch 15, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducauon \r\nand Supenntendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen. \r\nWe have audited the financial statements of City of Ch1ckaniauga Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated March 15, 2003 Tius report was qualified for vanous departures from generally accepted accounting pnnc1ples, as identified m the auditor's report on the general-purpose financial statements. We conducted our audit m accordance with aud1tmg standards generally accepted in the Umted States of Amenca and the standards applicable to financial audits contamed in Government Aud1tmg Standards, issued by the Comptroller General of the Uruted States \r\nCompliance \r\nAs part ofobtainmg reasonable assurance about whether City ofChickamauga Board ofEducation's financial statements are free of matenal misstatement, we performed tests of its compliance with certain prov1S1ons oflaws, regulations, contracts and grants, noncompliance with wluch could have a direct and matenal effect on the determination offinancial statement amounts. However, providing an op1mon on compliance with those prov1s1ons was not an obJect1ve of our audit, and accordingly, we do not express such an opinion The results ofour tests disclosed no instances ofnoncomphance that are reqwred to be reported under Government Aud1tmg Standards \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting m order to detemime our audJtmg procedures for the purpose of expressing our op1mon on the financial statements and not to provide assurance on the internal \r\n2002YB-41 \r\n \r\n control over financial reporting However, we noted a certain maner involving the internal control over financial reporting and Its operation that we consider to be a reportable cond1t10n Reportable cond1!1ons involve matters coming to our atten!lon relating to s1gruficant defic1enc1es in the design or operauon ofthe internal control over financial reporting that, in ourJudgment, could adversely affect City of Chickamauga Board ofEducation's ab1hty to record, process, summanze and report financial data consistent with assert:tons ofmanagement in the financial statements The reportable cond1t:ton 1s descnbed in the accompanying Schedule of Findings and Questioned Costs as item FS-7691-0201 \r\nA matenal weakness 1s a condition in winch the design or operation of one or more of the internal control components does not reduce to a relatively low level the nsk that misstatements in amounts that would be matenal in relatton to the financial statements bemg audited may occur and not be detected withm a timely penod by employees m the normal course of performing theu assigned functions. Our consideration ofthe internal control over financial reporting would not necessanly disclose all matters in the internal control that nught be reportable cond111ons and, accordingly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses. However, we consider item FS-7691-02-01 to be a matenal weakness \r\nTlus report 1s intended solely for the mformation and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entlties and 1s not \r\nintended to be and should not be used by anyone other than these specified parties \r\nRWH:as 2002YB-41 \r\n \r\n RU\u003c,SEU. W. HlNTOl' \r\nSTil.TE ,t,UOITOFI (40') 6!\u003e6-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wnshmgton Street. S W Su11c 214 AtlJnlJ, Georg1J 30334-8400 \r\nMarch 15, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Supenntendent and Members of the City of Cluckamauga Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPUCABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH \r\n0MB CIRCULAR A-133 \r\nLadles and Gentlemen \r\nCompliance \r\nWe have audited the compliance of City of Cluckamauga Board of Education with the types of comphance reqmrements descnbed m the US Office ofManagement and Budget (0MB) Circular A-133 Comphance Supplement that are applicable to each of its maJor Federal programs for the year ended June 30, 2002. City of Cluckamauga Board of Education's maJor Federal programs are identified m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and QuestJoned Costs. Comphance With the reqwrements of!aws, regulations, contracts and grants apphcable to each of its maJor Federal programs 1s the respons1b1hty ofCity of Chickamauga Board of Education's management Our respons1b1hty 1s to express an opm1on on City of Chickamauga Board of Educa!lon's comphance based on our audit \r\nWe conducted our audit of comphance m accordance With audltmg standards generally accepted m the Uruted States of Amenca, the standards apphcable to financial audits contamed m Government Audltmg Standards, issued by the Comptroller General of the Uruted States, and 0MB Circular A133, Audi/s of States, Local Governments, and Non-Profit Orgamzat,ons Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtam reasonable assurance about whether noncomphance With the types ofcomphance requirements referred to above that could have a direct and matenal effect on a major Federal program occurred. An audit mcludes exammmg, on a test basis, evidence about the City ofCluckamauga Board ofEducanon's comphance with those \r\n \r\n2002SA-10 \r\n \r\n reqmrements and performmg such other procedures as we considered necessary m the circumstances We believe that our audit provides a reasonable basis for our opnuon Our audit does not provide a legal determmatlon on City of Cluckamauga Board of Education's compliance with those requuements. \r\nIn our opmton, the City ofChickamauga Board ofEducation complied, m all matenal respects, with the requuements referred to above that are applicable to each of1ts ma3or Federal programs for the year ended June 30, 2002 \r\nInternal Control Over Compliance \r\nThe management of City ofCluckamauga Board of Education 1s responsible for estabhshmg and mamtammg effective mtemal control over comphance with requrrements of laws, regulations, contracts and grants applicable to Federal programs In planning and performmg our audit, we considered City of Cluckamauga Board of Education's mtemal control over compliance with requrrements that could have a drrect and rnatenal effect on a ma3or Federal program m order to determme our aud1tmg procedures for the purpose of expressmg our opm1on on compliance and to test and report on mtemal control over compliance m accordance with 0MB Circular A-133 \r\nOur consideration ofthe mternal control over compliance would not necessarily disclose all matters in the mternal control that might be matenal weaknesses. A matenal weakness 1s a cond1t1on m wluch the design or operation ofone or more ofthe mternal control components does not reduce to a relatively low level of nsk that noncompliance with applicable requrrements of laws, regulations, contracts and grants that would be matenal m relation to a major Federal program being auchted may occur and not be detected withm a tunely penod by employees in the normal course ofperformmg theu assigned functions. We noted no matters involvmg the internal control over compliance and its operation that we consider to be matenal weaknesses \r\nTlus report is intended solely for the information and use ofthe management, members ofthe C1tyof Chickamauga Board of Education, Federal awardmg agencies and pass-through entitles and 1s not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully sublllltted, \r\n \r\nRWH.as 2002SA-10 \r\n \r\nell W. Hmton Auditor \r\n \r\n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-769I-OO-0l FS-7691-01-01 \r\n \r\nFurther Acnon Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Fw.lure to Maintain General Fixed Asset Account Group Fmdmg Control Number. FS-7691-01-01 \r\n \r\nThe School D1stnct has staffing lmutatJons and budgetary considerations proh!b1tmg the hmng ofadd1tJonal adnurustranve staff, which would be necessary to resolve this find.mg \r\n \r\n SECTIONN FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Fmanc1al Statements The auditor's opmJon on the City ofCluckamauga Board ofEducation's financial statements was qualified for vanous departures from generally accepted accountmg prmc1ples. \r\n2 Reportable Cond1t1ons m Internal Control Disclosed by the Audit of the Fmanc1al Statements The audit report for the City of Cluckamauga Board of Education disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable conditJon described above 1s considered to be a material weakness \r\n3. Noncompliance Matenal to the Fmancial Statements The audit of the City of Cluckamauga Board of Education disclosed no mstances of noncompliance that were deemed to be matenal to the financial statements \r\n4 Reportable Conditions m Internal Control Over Major Programs The audit report for the City of Cluckamauga Board of Education did not disclose any reportable conditions m internal control over maJor programs. \r\n5. Type of Report Issued on Compliance for Ma1or Programs The auditor's opimon on the City of Chickamauga Board of Education's report on comphance with reqwrements applicable to major programs was unqualified. \r\n6. Audit Fmdmgs Reqwred to be Reported by Section 510(a) ofOMB Circular A-133 The City ofCluckamauga Board ofEducatJon's audit did not disclose audit findings reqwred to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and NutntJon Program - Food ServJces - School Breakfast Program 10.555 Food and Nutntlon Program- Food ServJces - National School Lunch Program \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The City of Chickamauga Board ofEducatJon qualified as a low nsk auditee as defined by Section .530 ofOMB Circular A-133 \r\n- 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Fm.lure to Mai.ntai.n General Fixed Assets Account Group Reportable Conchllon - Matenal Weakness \r\nRepeated from Pnor Year \r\nFmchng Control Number FS-7691-02-01 The City ofCluckamauga Board ofEducation chd not mamtai.n a system-wide General Fixed Assets Account Group witlun the formal accounllng records as reqwrecl by generally accepted accounllng pnnc1ples. Tlus conchuon results m the general-purpose financial statements ofthe School D1stnct bemg incomplete and not m accordance with generally accepted accountmg pnnc1ples Appropnate acllon should be taken by the School Dtstnct to establish accounllng controls and procedures to proVIde for mai.ntenance of a General Fixed Assets Account Group. These subsidiary records should mclude mventory of land, bwldmgs, and eqwpment owned by the School D1stnct and should mclude, but may not be hmited to, date acqwred, acquisition cost, estimated replacement cost, location, and descnption. Detailed records should be mai.ntai.ned ofall additions and delet10ns to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2000-h2001","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, 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, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2001-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with: Fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga--fast","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Chickamauga--fast","Periodicals--fast","Statistics--fast"],"fulltext":", \r\nV  I \r\n'\".:., \r\n., \r\n \r\n. , \r\n \r\n1  \r\n \r\n~... . ,)' \r\n \r\n, \"' \r\n \r\n' / \r\n \r\n...,,,\" \r\n \r\n\u003c ; \r\n \r\n'-.Dl{P\" ARTME.-N~--STTA'dTi=E, \r\n \r\nOF G'E-ORGIA  ,-_ -.: . AUDITS- AND 'A\"CCOUNT_S: \r\n \r\n,- J \\' \r\nAA \\ \r\n \r\n~  \r\n \r\n' j \r\n \r\n.. ... \r\n \r\nt '' \r\n \r\n~ \r\n' - \r\n \r\nA'ooo : \r\n:~1 - \r\n \r\n' -. \r\n \r\n\\ ; \r\n \r\n, \r\n \r\n,1:;3~ \r\n \r\nc.4 .' . ' \r\n \r\nro - \r\n.-.;ico. I \r\n \r\nr \r\n \r\n. - \r\n \r\n. '\\ \r\n.'. \r\n-.,. '\u003c \r\n.-- ,_ , \r\n.- . \r\n \r\n. . \r\n' '-. \r\n \r\n' ' \r\n \r\n:. \r\n \r\n,, \r\n; \r\n \r\n' .:,-_ \r\n \r\n. \\ \r\n \r\n. ' \r\n \r\n' . \r\n \r\n. 'l \r\n,, -.: \r\n.' ' \r\n. ' -. \r\n \r\n' ',, . \r\n \r\n' t.....,,\".,''' \\. \r\n \r\n\" \r\nJ,  \r\n'. \r\n. ' ... \r\n\\ ' \r\n \r\n \r\n: . \r\n.- I  '' . ' \r\n \r\n. ,-REPORT ON AUDIT \r\n \r\n1\" \r\n \r\n \r\n \r\nI \r\n \r\n. , . OF THE.FINANCIAL STATEMENTS ,. \r\n \r\nFOR \r\n \r\nTHE \r\n \r\nFISCAL-YEAR \r\n \r\nENDED'JUNE \r\n \r\n30... \r\n \r\n2001. \r\n \r\n1 \" \r\n \r\n_. \r\n \r\nI \r\n \r\nr \r\n \r\nI ,4 \r\n \r\n, \r\n\" -... .' \r\n \r\n. ' \r\n \r\n,. \r\n \r\n- \r\n \r\nRussell W. Hlnt~n,. \r\n \r\n' \\._. ; \r\n \r\n\" \r\n' \r\n \r\n~ \r\n. .,,, ''. ' ,\u003c . \r\n \r\n.. \r\n \r\n\u003c - \r\n \r\n' .- \r\n \r\nState Auditor \r\n. ' \r\n' ' \r\n. ,, \r\n,, \r\n \r\n-,, \r\n \r\n.' ' \r\n \r\n' . \r\n \r\n\" ' \r\n \r\n' \r\n1 \r\n' ,I. \r\n., \r\n \r\n', \r\n \r\n' ..' \r\n \r\n' \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTI' -TABLE OF CONTENTS- \r\n \r\nSECTION! \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES AND ACCOUNT GROUP \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n7 \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n8 \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING AND INDIVIDUAL FUND STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n20 \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n22 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n24 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n26 \r\n \r\nI \r\n \r\nFIDUCIARY FUND TYPE \r\n \r\nSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES \r\n \r\nAGENCY FUND \r\n \r\n29 \r\n \r\nSCHEDULES \r\n \r\nI SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n30 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n32 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n33 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY -TABLE OF CONTENTS- \r\n \r\nSECTION! \r\n \r\nFINANCIAL \r\n \r\nADDffiONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \r\n \r\nALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\n4 \r\n \r\nBY PROGRAM \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\nPage \r\n34 35 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III \r\nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION JV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION! FINANCIAL \r\n \r\n R11,'-lf- I I \\\\'. H1:\\TO'I \r\nSTATE AUDITOR (4::-,.ij 6~fi lP4 \r\n \r\nDEPARTl\\1ENT OF AUDITS AND ACCOUNTS \r\n214 \\Vc.1,hrngton S1rcel S \\\\,. Suuc 214 \r\nAtl,.rnt..1 Gcorg:1\u003c.1. 303348400 \r\nMay I, 2002 \r\n \r\nHonorable Roy E Barnes. Governor Members of the General Assembly Members of the State Board of Education \r\nand Supenntendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen \r\nWe have audited the accompanymg general-purpose financial statements ofthe City ofCluckamauga Board of Education, a component umt of the City of Chickamauga, Georgia, as of and for the year ended June 30, 200 I, as hsted m the table ofcontents These general-purpose financial statements are the respons1b1hty of the City of Cluckamauga Board of Education's management Our respons1b1hty 1s to express an opm1on on these general-purpose financial statements based on our audit \r\nExcept as discussed m the followmg paragraph, we conducted our audit m accordance with auditing standards generally accepted m the Umted States of Amenca and the standards applicable to financial audits contamed m Government Aud1tmg Standards. issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are free of matenal misstatement An audit mcludes exammmg, on a test basis, evidence supportmg the amoU11ts and disclosures m the financial statements. An audit also mcludes assessmg the accoU11tJng pnnc1ples used and s1gmficant eslimates made by management. as well as evaluatmg the overall financial statement presentation We believe that our audit provides a reasonable basis for our op1mon \r\nWe did not observe the takmg of either the Federal donated cornmod11ies mventory or purchased foods mventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amoU11ts stated as mventones through alternative procedures. \r\n \r\n2001ARL-13 \r\n \r\n As descnbed in the notes to the general-purpose financial statements, the Board of Educatmn's financial statements have been prepared using certain accounting practices and policies which, in our op1mon, vary in some respects from generally accepted accounting pnnc1ples These variances are descnbed as follows. \r\n The general-purpose financial statements of the Board of Educatmn did not contain a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be mcluded to conform to generally accepted accounting pnnc1ples \r\n School activity accounts maintamed at the ind1v1dual schools are not included in the general-purpose fmanc1al statements. To conform to generally accepted accounting pnnc1ples, these accounts should be included in the general-purpose financial statements. \r\n The Board of Education did not recogruze 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 pnor to June 30, 2001 Also funds received, subsequent to June 30, 2001, from the Georg1a 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 pnor to June 30, 2000, were improperly recorded in the year ended June 30, 2001 To conform to generally accepted accounting pnnc1ples, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed \r\nThe aggregate effects on the general-purpose financial statements of these variances or ormss1ons have not been deterrmned, but are believed to be matenal. \r\nIn our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as rmght have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food servtce inventones as discussed in the thrrd paragraph, and except for the effects on the general-purpose financial statements of the matters referred to in the precedmg paragraph, the general-purpose financial statements referred to above present fairly, in all matenal respects, the financial position of the City of Chickamauga Board of Education as of June 30, 2001, and the resuJts of its operations for the year then ended, in conformity with accounting pnnc1ples generally accepted in the Umted States of Amenca \r\n \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 1, 2002, on our consideration of the City of Chickamauga Board ofEducalton's internal control over financial reporting and our tests of Its compliance with certain prov1s1ons 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 m conJunction with tins report in cons1denng the results of our audit \r\n2001ARL-13 \r\n \r\n Our aud!I was performed for the purpose of forming an op1mon on the general-purpose financial statements of the City ofCluckamauga Board of Education taken as a whole The accompanying combining and ind1v1dual fund statements (Exh1b1ts E through I) and the financial schedules (Schedules I through 5), wluch includes the Schedule ofExpenchtures ofFederal Awards as required by U. S Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organzzatzons, are presented for purposes of add1t10nal analysis and are not a reqwred part of the general-purpose financial statements Such information has been subJected to the auditing procedures apphed in the audit of the general-purpose financial statements and in our op1mon, except for the effect of adJustments, 1f any, on the Special Revenue Fund, as might have been determmed to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventones as chscussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such mformation 1s farrly stated, in all matenal respects, in relation to the general-purpose financial statements taken as a whole \r\nA copy ofth1s report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24 \r\n \r\nRWHas 2001ARL-13 \r\n \r\nState Auditor \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n CITY Of CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nCOMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 3Q 2001 \r\n \r\n~ \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receweble \r\nInventories Food Donated CommodllJes Purchased Food \r\nAmount to be Provided in Future Years For Payment of Capital Lease Agreements \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n63,570 68 S 11767895 S \r\n \r\n61 096 65 \r\n \r\n537,364 85 \r\n \r\n771,385 35 \r\n \r\n72 93 \r\n \r\n543 00 \r\n \r\n101,781 20 \r\n \r\n8 678 33 9,490 28 \r\n \r\nTotal Assets \r\n \r\ns \r\n \r\n601 008 46 S 136 390 56 $ ___934_.,_26_3_2_0_ \r\n \r\nb!ABILIJIES AND FUND EQUITY \r\nL!ABILIIIES \r\nCash Overdraft Accounts Payal:Jle Selanes Peyeble Exp:red Gram Balances Payable Contracts Payable Retalnages Payable Deferred Revenue Funds Held for Others Cap,181 Le... Agreements \r\nTotal LJablrues \r\nfUNDEOUITY \r\nFund Balances Reserved For ConUnuallon of Federal Programs For Inventories Food Donated Commodibes Purchesed Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undes,gneted \r\nTotal Fund Equrty \r\n \r\n$ \r\n \r\n109,947 77 $ \r\n \r\n8,322 48 \r\n \r\n1,500 00 \r\n \r\n32,528 76 \r\n \r\n21714 \r\n \r\n6,858 04 \r\n \r\n5,322 79 \r\n \r\n$ \r\n \r\n11166491 s \r\n \r\n53,032 07 \r\n \r\n$ \r\n \r\n8,678 33 \r\n \r\n9,490 28 \r\n \r\n$ \r\n \r\n408,368 70 \r\n \r\n525,894 50 \r\n \r\n$ \r\n \r\n489 343 55 \r\n \r\n65,189 88 \r\n \r\n000 \r\n \r\n$ \r\n \r\n489 343 55 $ \r\n \r\n83 358 49 s \r\n \r\n934,263 20 \r\n \r\nTotal UabJI- and Fund Equity \r\n \r\ns \r\n \r\n601 008 46 S 1351390 56 $ ___9.3.4,.1\"'26\"\"3\"\"2\"'0'\" \r\n \r\nThe notes to the general-purpose financial statements are an Integral part of this statement -2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nFIDUCIARY FUND TYPE AGENCY FUND \r\n \r\n$ \r\n \r\n35360 \r\n \r\nACCOUNT GROUP GENERAL \r\nLONG-TERM DEBT \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30. 2000 \r\n \r\n$ \r\n \r\n242,699 88 $ \r\n \r\n194,823 30 \r\n \r\n1,308,750 20 \r\n \r\n1,510,27949 \r\n \r\n102,397 13 \r\n \r\n378,954.28 \r\n \r\n- - - - - - $ _ _ _~6~9~106~44~ \r\n \r\n8,678 33 9,490 28 \r\n69 106 44 \r\n \r\n9,019 96 5,!562 99 \r\n129 428 00 \r\n \r\n$ \r\n \r\n353 60 $ \r\n \r\n69106 44 $ 1 741122 26 $ 2,228,068 02 \r\n \r\n$ \r\n \r\n10,164 09 \r\n \r\n$ \r\n \r\n118,270 25 \r\n \r\n157,69815 \r\n \r\n34,028 76 \r\n \r\n31,825 05 \r\n \r\n7,07518 \r\n \r\n4,664 53 \r\n \r\n145,830 40 \r\n \r\n53,768 10 \r\n \r\n5 322 79 \r\n \r\n$ \r\n \r\n35360 \r\n \r\n35360 \r\n \r\n$ \r\n \r\n69 106 44 \r\n \r\n69 106 44 \r\n \r\n129 428 00 \r\n \r\n$ \r\n \r\n35360 $ \r\n \r\n69 106 44 $ \r\n \r\n234 157 02 $ \r\n \r\n533 378 32 \r\n \r\n$ \r\n \r\n3,98302 \r\n \r\n$ \r\n \r\n8,678 33 \r\n \r\n9,490 28 \r\n \r\n408,368 70 \r\n \r\n525,894 50 \r\n \r\n9,019 96 5,!562 99 839,976 34 441,39710 \r\n \r\n554 533 43 \r\n \r\n394,750 29 \r\n \r\n$ 1,506,965 24 $ 1 694 689 70 \r\n \r\n$ \r\n \r\n353 60 $ \r\n \r\n69 106 44 $ 1 741122 26 $ 2,228,068 02 \r\n \r\n-3- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nCOMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenu.. \r\nEXPENDrTURES \r\nCurrent Instruction Support Services Pupil SelVlces Improvement of lnstrudlonal Servu:es Educational Media Services General Admmistratlon School AdminlSlratlon Business Administration Maintenance end Operabon of Plant Student Transportation Services Other Support Serv,oes Food Serv,ces Operation \r\nGapllal Outlay Debt Service \r\nPnnapal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOJJ:1ER FINANCING SOURCES !USES\u003e \r\nCspltal Leases Operating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Fmanang Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory- Net Change ,n Period Donated Commodlbe1 Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\ns s 5,446,559 83 \r\n346,087 75 346 077 61 \r\n$ 6,138,72519 $ \r\n \r\n62 565 22 311,092 07 \r\n424 495 03 \r\n798152 32 \r\n \r\n$ 4,362,141 62 $ \r\n150,756 73 33,847 70 166,602 55 227,469 91 397,562 05 82,658 62 536,124 25 \r\n3,132 62 19,713 21 \r\n \r\n148,699 12 \r\n64,266 56 7,147 73 9,168 00 11,401 36 \r\n23,945 66 2,000 00 \r\n468,374 74 \r\n \r\ns 5,980,009 26 $ \r\n \r\ns \r\n \r\n158 715 93 $ \r\n \r\n60 321 56 5 72340 \r\n801 068 13 \r\n-2 915 81 \r\n \r\n$ \r\n \r\n50,600 00 \r\n \r\n$ \r\n \r\n-50 600 00 \r\n \r\n$ \r\n \r\n50600 00 $ \r\n \r\n-50 600 00 \r\n \r\ns \r\n \r\n209,315 93 $ \r\n \r\n-53,515 81 \r\n \r\n280,027 62 \r\n \r\n133,288 64 \r\n \r\n-341 63 3 927 29 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\ns \r\n \r\n489 343 55 $ _ __.83::.,:,35,::8:.;4:::9~ \r\n \r\nThe notes to the genel'lill-purpose financial statements are an Integral part of this statement -4- \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30 2000 \r\n \r\ns \r\n \r\ns s 30,521 40 \r\n \r\n5,539,646 45 \r\n \r\n5,153,408 39 \r\n \r\n311,092 07 \r\n \r\n258,696 72 \r\n \r\n634,025 06 \r\n \r\n980,11281 \r\n \r\n934,369 92 \r\n \r\n51 798 89 \r\n \r\n822 371 53 \r\n \r\n780 028 50 \r\n \r\ns \r\n \r\ns 716 345 35 \r\n \r\n7,653,222 86 $ 7,126,503 53 \r\n \r\ns s 4,510,840 74 \r\n \r\n3,982,538 96 \r\n \r\n$ \r\n \r\n66250 \r\n \r\n489,815 59 \r\n \r\n215,043 29 40,99543 175,770 55 238,871 27 397,562 05 83,32112 536,124 25 23,945 66 \r\n5,132 62 488,087 95 489,815 59 \r\n \r\n294,64817 161,41265 154,358.21 171,383 21 345,871 23 77,066 67 419,625 17 79,542 80 \r\n3,167 50 482,23645 1,031,652 52 \r\n \r\n60,321 56 5 72340 \r\n \r\n11,803 88 731 34 \r\n \r\n$ \r\n \r\ns 490 478 09 $ 7,271,555 48 \r\n \r\n7,216,038 76 \r\n \r\ns \r\n \r\ns 225,867 26 \r\n \r\ns 381 667 38 \r\n \r\n-89 535 23 \r\n \r\n$ \r\n \r\n64,714 00 \r\n \r\ns \r\n \r\n50,600 00 \r\n \r\n73,913 00 \r\n \r\ns -572 977 50 \r\n \r\n-623 577 50 \r\n \r\n-611 000 50 \r\n \r\n$ \r\n \r\n-572 977 50 $ \r\n \r\ns -572 977 50 \r\n \r\n-472 373 50 \r\n \r\ns \r\n \r\ns -347, 110 24 \r\n \r\ns -191,31012 \r\n \r\n-561,908 73 \r\n \r\n1.281,373 44 \r\n \r\n1,694,689 70 \r\n \r\n2,254,494 78 \r\n \r\n-341 63 3 927 29 \r\n \r\n3.258 71 -1155 06 \r\n \r\ns \r\n \r\n934 263 20 $ 1,506,965 24 $ 1 694 689 70 \r\n \r\n-5- \r\n \r\n CITY OE CHICKAMAUGA BOARD QF EDUCATION -WALKER COUNTY COMBINED STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET ANT ACTUAL (NON-GMP BASIS! \r\nGENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2001 \r\n \r\nEXHIBIT \"C\" \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\n \r\ns s 5.268 412 55 \r\n \r\n5,446,559 83 \r\n \r\n19 544 00 \r\n \r\n450,000 00 \r\n \r\n346,087 75 \r\n \r\n242,323 25 \r\n \r\n346 077 61 \r\n \r\ns s 5.980,279 80 \r\n \r\n6.138.72519 \r\n \r\nCurrent Instruction \r\nSupport Services PupUServices Improvement of lnstructtonal Servtc:es \r\nEducational Media Services General Admirustratton School Administration Buau,ess Adm1mstrabon Mal:ntenance and Operabon of Plant Student Transportation SeMcel Other Support Services Food Services Operation Debt Service \r\nTotal Expendrtures \r\nExcess of Revenues over (under) Expenditures \r\n \r\ns s 4,179,238 65 \r\n \r\n4 382 141 62 \r\n \r\n148,202 47 33,527 00 184,998 00 237 621 53 408,131 58 82,882 78 838,112 20 \r\n \r\n150 756 73 33,847 70 \r\n168,802 55 227 469 91 397,582 05 \r\n82,858 62 538,124 25 \r\n \r\n3,117 50 \r\n \r\n3,132 62 19,713.21 \r\n \r\ns s 5,895.629 69 \r\n \r\n5.980.009 26 \r\n \r\ns \r\n \r\ns 8465011 \r\n \r\n15871593 \r\n \r\nOTHER FINANCING SOURCES {USESl \r\nOther Sources Other Uses \r\n \r\n$ 50,600 00 \r\n \r\nTotal Other Flnanang Sources (Uses) \r\n \r\n$ 50 600 00 \r\n \r\nExcess of Revenue\u0026 and Other Financing Sources over (under) Expenchtures and Other Financing Uses $ \r\nFUND BALANCE JULY 1 2000 \r\nAd1ustments Food Inventory - Net Change In Period \r\nDonated Commodrtles Purchased Food \r\n \r\n84,650 11 $ \r\n330,017 91' \r\n-6515 \r\n \r\n209,315 93 280,027 62 \r\n \r\nFUND BALANCE JUNE 30 2001 \r\n \r\n$ 414 602 87 $ 489.343 55 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\ns 62,282 00 s 82,565 22 \r\n286,752 77 311,092 07 \r\n308.818 40 424.495 03 \r\ns 857 853 17 s 798.152 32 \r\n \r\ns s 115,411 00 148,69912 \r\n \r\n44 84400 59,001 00 9,188 00 \r\n150 00 \r\n \r\n64,286 56 7,147 73 9,188 00 \r\n11,401 36 \r\n \r\n463,629 50 \r\n \r\n23,!M5 68 2,000 00 488,374 74 68,044 98 \r\n \r\ns s 692.403 50 801.068 13 \r\n \r\n$ -34.550 33 $ -2 915 81 \r\n \r\n$ -50.600 00 $ -50.600 00 \r\n \r\n$ -34,550 33 $ -53,515 81 \r\n \r\n32 884 56 \r\n \r\n133,288 64 \r\n \r\n-19 441 32 \r\n \r\n-341 63 3 927 29 \r\n \r\n$ -21 307 07 $ 83,358 49 \r\n \r\nThe notes 10 the general-purpose finanaal statements are an Integral part of ttus atatement  7. \r\n \r\n c1n OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 \r\nNote l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe City ofCJuckamauga Board ofEducauon (School D1stnct) was estabhshed under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appointed by the Board The School D1stnct 1s not orgaruzed as a separate legal enllty and does not have the power to levy taxes or issue bonds Its budget 1s subJect to approval by the City of Cluckamauga, Georgia Accordingly, the City of Chickamauga Board of Educallon 1s determined to be a component urut of the City of Cluckamauga, Georgia, wluch 1s the pnmary government. \r\nFUND ACCOUNTING \r\nThe School D1stnct uses funds and an account group to report on its financial pos11lon and the results of1ts operauons Fund accounting 1s designed to demonstrate legal comphance and to aid financial management by segregallng transacllons related to certain governmental func!lons or ac11v1t1es. A fund 1s a separate accounting entity with a self-balancing set of accounts. An account group 1s a financial reporting device designed to proVJde accountab1hty for certain assets and hab1hlles that are not recorded in the funds because they do not directly affect expendable available financial resources \r\nGeneral Fixed Assets are recorded as expenditures in the vanous funds at the !lme of purchase A General Fixed Assets Account Group 1s not presently maintained by the School D1stnct. To conform to generally accepted accounting pnnc1plcs, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types \r\nAlthough \"school activity accounts\" are maintained at the ind1V1dual schools, neither the assets, hab1h11es and fund eqmty, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements To conform to generally accepted accounting pnnc1ples, these accounts should be recorded in the general-purpose financial statements \r\nThe general-purpose financial statements account for all State. Federal, Taxes and Other funds under control of the School D1stnct, in comphance With generally accepted accounllng pnnc1ples apphcable to governmental uruts, unless otherwise disclosed in these notes Funds and the account group presented in this report are as follows \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School D1stnct\"s educallonal activities Governmental Fund Types include. \r\nGENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted for in another fund These transacuons relate to resources obtained and used for serVJces proVJded by a board of educallon \r\n- 8- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEME1'7\"S JUNE 30, 2001 \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for maJor capital proJects) that are legally restncted to expenditures for specified purposes These funds are received pnmarily from the Georgia Department of Education and from the Federal government to accomphsh specific educational objectives \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqu1s1t1on or construction ofmaJor capital fac1ht1es. \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit m a trustee capacity or as an agent for md1viduals, pnvate orgaruzatlons, other government units and/or other funds. This fund mcludes \r\nAGENCY FUND - the fund used to account for assets held m a fiduciary capacity for other funds, governments, or md1v1duals \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg device used to account for capital lease obhgatlons. \r\nBASIS OF ACCOUNTING \r\nThe accountmg and fmanc1al reportmg treatment apphed to a fund 1s determmed by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With this measurement focus, only current assets and current hab1ht1es generally are mcluded on the balance sheet. Operating statements of these funds present mcreases (1.e , revenues and other financmg sources) and decreases (1.e , expenditures and other financmg uses) m net current assets Their reported fund balance 1s considered a measure of available spendable resources \r\nL1ab1h1Jes which are expected to be fmanced from available spendable resources are reported as hab1ht1es m the governmental funds. Other hab1ht1es, whJch are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group \r\nAgency funds are purely custodial m nature and do not mvolve measurement ofresults ofoperations \r\nGovernmental funds are accounted for usmg the modified accrual basis ofaccountmg under whJch \r\nRevenues are recogmzed when susceptible to accrual (1 e, when they become both measurable and available) \"Measurable\" means the amount of the transacllon can be determmed and \"available\" means collectJble withm the current penod or soon enough thereafter to be used to pay hab1hlles of the current penod The School D1stnct considers receivables collected within sixty days after yearend to be available and therefore suscepl!ble to accrual. Nonexchange transacllons, m which the School D1stnct gives (or receives) value without directly receiving (or givmg) equal value m exchange, mclude property taxes, local opllon sales taxes, mtergovernmental grants and donal!ons \r\n-9- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 \r\nNote l  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nRevenue for property t3lces 1s recogruzed m the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recogruzed m the fiscal year m wluch all ehg1b1hty requ1rements have been satisfied \r\nExpenditures are generally recogmzed when the related fund hab1hty 1s mcurred \r\nA departure from the above defimtions 1s the accountmg treatment afforded the fmal two payments on General Fund teachers' and bus dnvers\" contracts, and the resources avrulable from the Georgia Department of Education for the State\"s share of these contracts. Dunng fiscal year 2001, a substantial number ofpersonnel of the School D1stnct were employed for a one hundred and mnety day penod beginmng m August 2000 and endmg in early June 2001 Personnel contracts for this employment penod specify that compensation be prud m twelve equal monthly payments beginmng m September 2000 and endmg m August 2001 State grants to fund the State\"s share of these contracts were disbursed from the Georgia Department of Education to the School D1stnct m 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 D1stnct subsequent to June 30, 2001. Also, the State's portion ofthe compensa!Jon paid m July and August 2001 was received and recorded as revenue m the fiscal year subsequent to June 30, 2001. Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2000, were recorded m the year ended June 30, 2001. Generally accepted accountmg pnnc1ples require that revenues be recorded when avrulable and measurable and that expemhtures be recorded when mcurred, rather than when funds are received or disbursed \r\nAgency funds are accounted for usmg the modified accrual basis ofaccountmg m recogruzmg assets and hab1ht1es. \r\nBUDGET \r\nThe City of Chickamauga Board ofEducatJ.on\"s budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable fund mg sources There 1s no statutory prolub1t1on regardmg overexpend1ture ofthe budget at any level The budget for all governmental funds 1s prepared by fund, function and obJect The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnc1ples \r\nThe budget process begins when the School District's adm1111stratJ.on prepares a tentatJ.ve budget for the Board\"s approval After approval oftlus tentative budget by the Board, such budget 1s advertised at least once ma newspaper ofgeneral c1rculat1.on m the locality. At the next regular meetmg ofthe Board after advertisement, the Board receives comments on the tentative budget, makes reV1s1ons as necessary and with the approval of the City Council adopts a final school budget Tlus final budget \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n1s then subnutted, in accordance with prov1s1ons ofthe Quahty Basic Educat10n Act, OCGA Section 20-2-167(c), to the Georgia Department of Education The Board may increase or decrease the budget at any time dunng the year. All unexpended budget authonty lapses at fiscal year-end \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash eqmvalents consist ofcash on hand, demand deposits and short-tenn mvestments with onginal matunties of three months or less from the date of acqms1t10n in authonzed financial institutions Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan assoc1at10ns \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1patmg interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1patmg mterest-eanung contracts and money market mvestments with a matunty at purchase ofone year or less are reported at amortized cost Both partJ.c1pat:mg interest-eaming contracts and money market investments with a matunty at purchase greater than one year are reported at farr value The Official Code ofGeorgia Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds In selectmg among options for mvestment or among 1nsl!tut1ona\\ bids for deposits, the highest rate ofreturn shall be the obJectlve, given eqmvalent conchtlons of safety and hqwd1ty. Funds may be invested m the fol10W1Dg \r\n(I) Obhgauons issued by the State of Georgia or by other states, \r\n(2) Obhgattons issued by the Uruted States government, \r\n(3) Obhgat1ons fully insured or guaranteed by the Uruted States government or a Uruted States government agency, \r\n(4) Obhgattons of any corporation of the Umted States government, \r\n(5) Pnme banker's acceptances, \r\n(6) The Local Government Investment Pool adm1rustered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obhgauons of other pohtlcal subd1V1s1ons of the State of Georgia \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER C0l.NlY EXHIBIT \"D\" NOTES TO THE GENERAL-PURPOSE FINANOAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nNote 1 SUMMARY OF SJGNlFICANT ACCOUNTING POLICIES \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformat10n available Receivables are recorded when either the asset or revenue recogrutlon cntena has been met. Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessitate the need for an allowance for uncollec!ible receivables \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Cluckamauga fixed the property tax levy for the 2000 tax year (calendar year) on October 2, 2000 (levy date) Taxes were due on February 23, 2001 (hen date). Taxes collected w1thm the current fiscal year or w1thm 60 days after year-end are reported as revenue m fiscal year 2001. The Cluckamauga City Clerk bills and collects the property taxes for the School D1stnct and remits the taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2001 for mamtenance and operations amounted to $346,087.75 \r\n \r\nThe tax rmllage rate leVIed for the 2000 tax year (calendar year) for the City ofCluckamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n~mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax 1s to be used for capital outlay for educational purposes. Special Purpose Local Opuon Sales Tax revenue dunng the fiscal year amounted to $634,025 06 and was recorded m the Capital Projects Fund. The State will termmate collection oftlus tax once an additional $1,517,178.25 has been collected or on June 20, 2002, whichever occurs first \r\n \r\nThe City of Cluckamauga (City Government) sold general obhgauon bonds to provide advance fund mg for Capital Outlay Projects associated wtth issuance ofa Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2001, the School D1stnct proVIded $572,977 50 ofSPLOST proceeds to the City Government for debt serVIce on said general obhgatJon debt \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES Inventones of donated food commodities used m the preparation of meals are reported on the Combmed Balance Sheet at their Federally assigned value Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commodities are recorded as revenues and expenditures at the tlrne commodity Items are received. Purchased foods mventones are recorded as expenditures at the time ofpurchase. The mventones reported on the balance sheet \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EX'l-IIBIT \"D\" NOTES TO THE GENERAL-PURPOSE FINANQAL STATEMENTS \r\nJUl\\'E 30. 2001 \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nfor donated food commodities and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets \r\nINTERFUND TRANSACTIONS \r\nThe School D1stnct has the followmg types of mterfund transactions: \r\nReimbursements of expenditures m1t1ally made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbursmg fund and as reduct10ns of expenditures m the fund that 1s reimbursed \r\nOperating transfers are recorded for all mterfund transactions other than reimbursements. \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to mchcate that they are presented only to fac1htate financial analysis. Data m these columns do not present financial position or results ofoperat10ns m confomuty with generally accepted accountmg pnnc1ples Neither are such data comparable to a consolidation Interfund ehmmatlons have not been made m the aggregation of tlus data. Certam reclassifications have been made to the comparative data to conform to the current year classifications \r\nNote 2 DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 proVIdes that there shall not be on deposit at any time many 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 secuntles pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deduction ofthe amount ofdeposit msurance. Ifa depository elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe \r\nsecuntles pledged to secure a pool ofpubhc funds shall be not less than 11 0percent ofthe daily pool \r\nbalance OCGA Sect10n 45-8-11 (b) provides an officer holdmg pubhc funds may, m his discretion, waive the reqmrernent for secunty m the case ofoperating funds placed m demand deposit checkmg accounts. \r\nAcceptable secunty for deposits consists of any one of or any combmatlon of the followmg \r\n(I) Surety bond signed by a surety company duly qualified and authonzed to transact busmess within the State of Georgia, \r\n(2) Insurance on accounts proVJded by the Federal Deposit Insurance Corporation, \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCA1101' - WALKER COUNTY EXHIBIT \"D\" \r\nNOTES TO THE GENERAL-PURPOSE FJNANCIAL STATEMENTS JUNE 30, 2001 \r\n \r\nNote 2 DEPOSITS AND INVESTMENTS \r\n \r\n(3) Bonds, bills, notes, certificates ofmdebtedness or other direct obhgauons of the Uruted States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of mdebtedness or other obhgatlons of the counties or mUIUc1paht1es of the State of Georgia, \r\n \r\n(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, proVIdmg that the statute that created the authonty authonz~ the use of the bonds for tlus purpose, \r\n \r\n(6) Industnal revenue bonds and bonds ofdevelopment authontles created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgations of a subsidiary corporation of the Uruted States government, which are fully guaranteed by the Uruted States government both as to pnnc1pal and mterest or debt obhgabons issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperattves, the Farm Credit Banlcs, the Federal Home Loan Mortgage Assoc1at1on, arid the Federal National Mortgage Assoc1atJ.on \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $1,210,641.88. The amounts ofthe total bank balances are classified mto three categones of credit nsk. \r\n \r\nCategory I - Cash that 1s msured (e g, Federal depository msurance) or collateral1zed with secunues held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name \r\nCategory 2 - Cash collaterahzed with secunttes held by the pledgmg financial 1nstJ.tution's trust department or agent m the School D1stnct's name \r\nCategory 3 - Uncollateral1zed deposits. (Tlus mcludes any banlc balance that 1s collateralized with secunties held by the pledgmg financial 1nst1tutton, or by its trust departmen! or agent but not m the School District's name ) \r\n \r\nThe School D1stnct's deposits are classified by nsk category at June 30, 2001, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 2 3 \r\nTotal \r\n \r\n$ 100,000.00 000 \r\n1,110.641 88 \r\n$ 1.210,641 88 \r\n \r\n- 14- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" !':,\"OTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\nNote 2 DEPOSITS AND INVESTMENTS \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2001, the carryrng value of the School D1stnct's total investments was S771,385 35 which 1s matenally the same as fair value Tius investment consisted entirely of funds rnvested in the Local Government Investment Pool adm1mstered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not reqmred to be categonzed since the School D1stnct did not own any specific identifiable secuntles in the pool The investment pohcy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1dity Portfoho) does not provide for investment in denvatlves or similar rnvestments A descnptlon ofthe Pnmary L1qmd1ty Portfolio 1s as follows \r\nThe Pnmary Liqu1d1ty Portfolio consists of Georgia Fund 1, which 1s a combination local and state government rnvestment pool, and Fund 6 Georgia Fund l 1s a stable net asset value rnvestment pool wluch follows Standard and Poor's cntena for AAAm rated money market funds. The pool 1s not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and 1s considered to be a Rule 2a7 like pool. The pool's pnmary obJectlves are safety of capital, investment income, liqmd1ty and d1vers1ficat1on while maintarnrng pnnc1pal ($1.00 per share value). Net asset value 1s calculated weekly to ensure stab1hty. The pool d1stnbutes earnrngs (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1 00 per share Pooled cash and cash equivalents and investments are reported at cost wluch approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Part1c1pat1on in the pool 1s voluntary and deposits consist of funds from local governments, operating and trust funds of Georgia's state agencies, colleges and umvers1t1es; and current operating funds of the State of Georgia's General Fund \r\nInvestments rn Georgia Fund I and Fund 6 are directed toward short-term rnstruments such as U S. \r\nTreasury obligations, secuntles issued or guaranteed as to pnnc1pal and interest by the U S. Government or any of its agencies or rnstrumentahtles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund 1 may not exceed 60 days. The weighted average matunty for Georgia Fund 1 on June 30, 2001. was 39 days The average investment duration for Fund 6 on June 30, 2001, was 6 months \r\nNote 3 NON-MONETARY TRANSACTIONS \r\nThe School D1stnct receives food commod1ties from the United States Department of Agnculture (USDA) for school breakfast l!Ild lunch programs. These commodities are recorded at their Federally assigned value See Note 1 - Inventories \r\nNote 4 RISK MANAGEMENT \r\nThe School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and destruction of assets; errors or om1ss1ons,Job related Illness or rnJunes to employees, natural disaster and unemployment compensation \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 4 RISK MANAGEMENT \r\n \r\nThe School D1stnct has obtamed commercial insurance for nsk ofloss associated with torts, assets, errors or onuss1ons, Job related 1llness or mJunes to employees and natural disaster The School D1stnct has neither s1gmficantly reduced coverage for these nsks nor incurred losses (settlements) winch exceeded the School D1stnct's insurance coverage m any of the past three years \r\n \r\nThe School D1stnct 1s self-msured with regard to unemployment compensation claims The School D1stnct accounts for chums w1tlnn the General Fund with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School D1stnct has not expenenced any unemployment churns durmg the last two years. \r\n \r\nThe School D1stnct has purchased a surety bond to proVJde add1!ional msurance coverage as follows \r\n \r\nPos1t1on Covered \r\n \r\nAmount \r\n \r\nSupermtendent \r\n \r\n$ 10,000 00 \r\n \r\nNote 5 GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City ofClnckamauga Board of Education has entered mto a lease agreement as lessee for the purchase oftwo buses. Tins lease agreement quaJ1fies as a capital lease for account.mg purposes and, therefore, has been recorded at the present vaJue of the future m1mmum lease payments as of the date oftins inception \r\n \r\nThe changes m General Long-Term Debt dunng the fiscaJ year ended June 30, 2001, were as foJiows: \r\n \r\nCapital Leases \r\n \r\nBalance July 1, 2000 \r\n \r\n$ 64,714 00 \r\n \r\nRetroactive Restatement of Pnor Year BaJances \r\n \r\n64,714.00 \r\n \r\nBalance July l, 2000 Restated \r\n \r\n$ 129,428.00 \r\n \r\nDeductions Payments \r\n \r\n60,321 56 \r\n \r\nBaJance June 30, 2001 \r\n \r\n$ 69.106 44 \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COU]'ffY EXHIBIT \"D\" \r\nNOTES TO THE GENERAL-PURPOSE FINANC!AL STATEMENTS \r\nJUNE 30. 2001 \r\n \r\nNote 5 GENERAL LONG-TERM DEBT \r\n \r\nAt June 30, 200 I, payments due by fiscal year wluch mcludes pnnc1pal and mterest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\n2003 2004 2005 \r\n \r\n$ 26,044 96 26.044 96 26,044.96 \r\n \r\nTotal Pnnc1pal and Interest \r\n \r\n$ 78,134 88 \r\n \r\nDeduct: Imputed Interest \r\n \r\n9,028 44 \r\n \r\nNet Present Value of Future Mmunum Lease Payments \r\n \r\n$ 69 )06.44 \r\n \r\nNote 6 ON-BEHALF PAYMENTS \r\n \r\nThe School D1stnct has recogruzed revenues and expenditures m the amount of $66, I IO 42 for health msurance and relirernent contnbutions paid on the School D1stnct's behalf by the foUowmg State Agencies. \r\n \r\nGeorgia Department of Educa!ion Paid to the Georgia Department of Cornmuruty Health For Health Insurance of Non-Certified Personnel In the amount of $50,370 46 \r\n \r\nPaid to the Teachers Re!irernent System of Georgia For Teachers Re!irement System (TRS) Employer's Cost In the amount of $5,550.96 \r\n \r\nOffice of Treasury and Fiscal SeTV1ces Paid to the Public School Employees Retrrement System For Public School Employees Relirement (PSERS) Employer's Cost In the amount of$10,189.00 \r\n \r\nNote 7 CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies Tlus could result m requests for reunbursement to the grantor agency for any expenditures wluch are disallowed under grant terms. The School D1Stnct beheves that such d1sallowances, 1f any, will be 1rnmatenal to its overall financial pos1t1on. \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"D\" \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 \r\nNote 8 SUBSEQUENT EVENTS \r\nOn March 19, 2002, the voters of Walker County voted in favor of a Special Purpose Local Option Sales Tax referendum (commencing upon the expiration ofthe current I percent sales and use tax) for educatJ.onal purposes. The unpos1tion ofthe tax approved by the voters, as stated on the Official Ballot of Walker County, 1s as follows \r\n\"Shall a one percent sales and use tax be imposed in Walker County for a penod oft1me not to exceed twenty calendar quarters and for the raising of not more than $27,500,000 . (b) $3,575,000 ofwh1ch shall be received by the Board ofEducatJ.on ofthe City of Cluckamauga for the purposes of (1) constructing and eqmpping additional instructional space at the Chickamauga Elementary School, (11) constructing, modifying, renovatmg, and eqmppmg Gordon Lee Middle School, (111) mod1fymg and upgrading HVAC at Ware-Jewell ActJ.v1bes Bu1ldmg at Gordon Lee High School, (1v) constructmg new physical education and athletic fac1ht1es at Gordon Lee High School, and (v) acqumng, constructmg, repamng, unprovmg, retrofittmg, upgradmg and eqmppmg other bu1ldmgs and fac1hties useful or desirable m connection therewith, mcluding acqumng any necessary property therefore, both real and personal. \r\nIf 1mpos1tlon of the tax 1s approved by the voters, such vote shall also constitute approval of . (i1) the issuance of general obligation debt of the City of Cluckamauga m the pnnc1pal amount of $2,600,000 for the purpose of financmg the costs of the capital outlay projects of the Cluckamauga School System descnbed above.\" \r\nNote 9 RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nTRS PLAN DESCRIPTION Substantially all teachers, adnnrustratlve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), wluch 1s a cost-sharmg multiple employer defined benefit pension plan. TRS provides service retirement, chsab1hty retirement and surY1vors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial aucht report and a copy can be obtamed from the Georgia Department of Audits and Accounts. \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are reqmred by State statute to contnbute 5% ofthe1r gross eammgs to TRS. The School D1stnct makes monthly employer contnbutlons to TRS at rates adopted by the TRS Board ofTrustees m accordance with State statute and as advised by their mdependent actuary. The required employer contnbut1on rate 1s 11.29% and employer contnbut1ons for the current fiscal year and the preceding two fiscal years are as follows: \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATIO:-1 - WALKER COIDIJ)' EXHIBIT \"D\" NOTES TO 11-IE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 \r\n \r\nNote 9. RETIREMENT PLANS \r\nFiscal Year \r\n2001 2000 1999 \r\n \r\nPercentage Contnbuted \r\n100% 100% 100% \r\n \r\nRequ1red Contnbut10n \r\n$ 445,025.85 $ 413,375.26 $ 417,74493 \r\n \r\n- 19  \r\n \r\n CIJY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY COMBINING BALANCE SHEET \r\nSPECIAL REVENUE FUND \r\nJUNE 30. 2001 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable lnventones \r\nFood Donated Commod1t1es Purchased Food \r\nTotal Assets \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n29.165 65 $ \r\n \r\n000 \r\n \r\n8,678 33 9490 28 \r\n \r\n$ \r\n \r\n41334 26 s_ _~..;o~oo:;;::.. \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue \r\nTotal L1abthbes \r\nFUND EOUIJY \r\nFund Balances Reserved For Conbnuabon of Federal Programs For lnventones Food Donated Commod1t1es Purchased Food Unreserved Un designated \r\nTotal Fund Equity \r\nTotal L1abllrtJes and Fund Equity \r\nSee notes to the general-purpose financial statements \r\n-20  \r\n \r\n$ \r\n \r\n2,863 61 \r\n \r\n26,302 04 \r\n \r\n$ \r\n \r\n29,16565 \r\n \r\n$ \r\n \r\n8,678 33 \r\n \r\n9,490 28 \r\n \r\n000 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n18 168 61 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n47 334 26 $-~-=.::,0.,::0::,0 \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n23,32342 $ \r\n \r\n65,189 88 $ \r\n \r\n117,67895 $ \r\n \r\n159,672 36 \r\n \r\n54300 \r\n \r\n54300 \r\n \r\n8,678 33 9 490 28 \r\n \r\n9,019 96 5 562 99 \r\n \r\n$ \r\n \r\n6518988 $ \r\n \r\ns___ 136.390 56 \r\n \r\n1_14_.2.,s.5._3_1 \r\n \r\n$ \r\n \r\n5,458 87 \r\n \r\n6,226 72 \r\n \r\n6,858 04 \r\n \r\n5 322 79 \r\n \r\n$ \r\n \r\n23,866 42 \r\n \r\n$ \r\n \r\n8,32248 $ \r\n \r\n4,477 09 \r\n \r\n32,528 76 \r\n \r\n31,825 05 \r\n \r\n6,858 04 \r\n \r\n4,664 53 \r\n \r\n5,322 79 \r\n \r\n$ \r\n \r\n53,032 07 $ \r\n \r\n40 966 67 \r\n \r\n$ \r\n \r\n3,983 02 \r\n \r\n$ \r\n \r\n8,678 33 \r\n \r\n9,490 28 \r\n \r\n9,019 96 \r\n5,562 99 \r\n \r\n$ \r\n \r\n0 00 $ _ __.,65=-a1\"\"89=-8\"'8'- \r\n \r\n65 189 88 \r\n \r\n114 722 67 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n65 189 88 $ \r\n \r\n83,358 49 $ _~1~33=,2=8~8~64~ \r\n \r\n$ \r\n \r\n65 189 88 $ \r\n \r\n1361390 ss s_,__1.1.4._.2_5_5_3_1 \r\n \r\n 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nCOMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent lnstructJon Support Services Pupil Services Improvement of lnstructJonal SeMces Educabonal Medill SeMces General Adm1mstrabon Student Transportation Services Other Support Services Food Services OperatJon \r\nDebt Service Pnnc:,paJ Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expendrtures \r\nOTHER FINANCING SOURCES {)JSES} \r\nCaprtal Leases Operellng Transfers In Operating Transfers Out \r\nTotal Other F1nanc:,ng Sources (Uses) \r\nExcess of Revenues and Other Flnanc:,ng Sources over (under) Expendrtures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change 1n Period Donated Commodities Purchased Food \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general-purpose financial statements -22- \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n35,242 00 $ \r\n \r\n108 796 90 \r\n \r\n300 056 51 \r\n \r\n$ \r\n \r\n444 095 41 $ \r\n \r\n27,323 22 27 323 22 \r\n \r\n$ \r\n \r\n27,32322 \r\n \r\ns \r\n \r\n468,374 74 \r\n \r\n$ \r\n \r\n468 374 74 $ \r\n \r\n$ \r\n \r\n-24 279 33 $ \r\n \r\n27,323 22 000 \r\n \r\n$ \r\n \r\n14,834 96 \r\n \r\n$ \r\n \r\n14 834 96 \r\n \r\ns \r\n \r\n-9,44437 $ \r\n \r\n000 \r\n \r\n24,027 32 \r\n \r\n000 \r\n \r\n-341 63 3927 29 \r\n \r\n$ \r\n \r\n1a 168 s1 s_ _ _ _o__oo_ \r\n \r\n EXHIBIT \"F'' \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30. 2001 \r\n \r\nJUNE 30. 2000 \r\n \r\ns \r\n \r\n$ \r\n \r\n202,29517 \r\n \r\n- - - - - - $ _ _~12'-'4~4~38~52\"- \r\n \r\n$ \r\n \r\n202 29517 $ \r\n \r\n124 438 52 $ \r\n \r\n62,56522 $ 311,092 07 42449503 \r\n \r\n93,069 77 258,696 72 409.36666 \r\n \r\n798 152 32 $ _ _7\"\"6'-'1~1~33\"-\"15\"- \r\n \r\n$ \r\n \r\n121,375 90 \r\n \r\n64,28656 7,147 73 9,16800 2,30000, $ \r\n \r\n2,00000 \r\n \r\n$ \r\n \r\n206 27819 $ \r\n \r\n$ \r\n \r\n-398302 $ \r\n \r\n$ \r\n9,101 36 23,94566 \r\n60,32156 5 72340 \r\n99 09198 $ 25 346 54 $ \r\n \r\n148,69912 $ \r\n64,28656 7,147 73 9,168 00 \r\n11,401 36 23,94566 \r\n2,00000 468,374 74 \r\n60,321 56 5 72340 \r\n80106813 $ \r\n-2 915 81 $ \r\n \r\n141,060 78 \r\n50,412 41 16,035 29 \r\n50000 16,62260 79,542 80 \r\n482,23645 \r\n11,80388 73134 \r\n798 94555 \r\n-37 812 40 \r\n \r\n$ \r\n \r\n64,714 00 \r\n \r\n$ \r\n \r\n14,834 96 \r\n \r\n$ \r\n \r\n-6543496 \r\n \r\n-65434 96 \r\n \r\n-40 000 00 \r\n \r\n$ \r\n \r\n-6543496 $ \r\n \r\n-50600 00 $ \r\n \r\n24 714 00 \r\n \r\n$ \r\n \r\n-3,983 02 $ \r\n \r\n--40,088 42 $ \r\n \r\n-53,515 81 $ \r\n \r\n-13,09840 \r\n \r\n3,983 02 \r\n \r\n105,278 30 \r\n \r\n133,288 64 \r\n \r\n144,283 39 \r\n \r\n-341 63 3 927 29 \r\n \r\n3,258 71 -1 155 06 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n65189 88 $ \r\n \r\ns_ _ 83 358 49 \r\n \r\n1_3_3._2_88__64_ \r\n \r\n-23- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nCOMBINING BALANCE SHEET CAPITAL PROJECTS FUND \r\nJUNE 30. 2001 \r\n \r\nASSETS Cash and Cash Equ1Valents Investments Accounts Rece1Vable \r\nTotal Assets \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n59,952 24 $ \r\n \r\n000 \r\n \r\n348,416 46 \r\n \r\n$ 408 368 10 s_ _ _ _o~oo._ \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Contracts Payable Retainages Payable \r\nTotal l.Jab,lrties \r\nFUND EQUITY \r\nFund Balances Reserved For Purposes of Bond Issue For SPLOST ProJects Unreserved Undes1gnated \r\nTotal Fund Equity \r\nTotal Uabllltles and Fund Equity \r\n \r\n$ \r\n \r\n408.366 70 \r\n \r\nooo s_______co:..oo=$ 406 366 10 s _ _ __,,:o:...oo=- \r\n \r\n$ \r\n \r\n408 368 70 $ _ _ _...,.;0;;.,;00::,::.... \r\n \r\nSee notes to the genera~purpose financial statements - 24 - \r\n \r\n EXHIBIT \"G\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION \r\nSALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30. 2000 \r\n \r\n$ \r\n \r\n1,144 41 $ \r\n \r\n61,096 65 $ \r\n \r\n110,245 04 \r\n \r\n422,968 89 \r\n \r\n771,385 35 \r\n \r\n1,066,940 55 \r\n \r\n101 781 20 \r\n \r\n101 781 20 \r\n \r\n378 880 45 \r\n \r\n$ \r\n \r\n525,894 50 $ \r\n \r\n934,263 20 $ 1,556,066 04 \r\n \r\n$ \r\n \r\n75,09410 \r\n \r\n145,830 40 \r\n \r\n53 768 10 \r\n \r\n$ \r\n \r\n274 692 60 \r\n \r\n$ \r\n \r\n408,368 70 $ \r\n \r\n839,976 34 \r\n \r\n$ \r\n \r\n525,894 50 \r\n \r\n525,894 50 \r\n \r\n441,397 10 \r\n \r\n000 \r\n \r\n000 \r\n \r\n000 \r\n \r\n$ \r\n \r\n525,894 50 $ \r\n \r\n934.~\u00263 20 S 1 281 373 44 \r\n \r\n$ \r\n \r\n525,894 50 $ \r\n \r\n934,263 20 S ' 1,556,066 04 \r\n \r\n-25  \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND \r\nYEAR ENDED JUNE 30. 2001 \r\n \r\nREVENUES \r\nState Funds TSlCeS Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Support SeMces Business Adm1rnstrabon \r\nCapital Outlay Building end Bu1ld1ng lmprovemems Equipment \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES fUSESl \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFUND BALANCE JUNE 30 \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n30,521 40 \r\n \r\n$ \r\n \r\n27,686 55 \r\n \r\n$ \r\n \r\n27 686 55 $ \r\n \r\n30 521 40 \r\n \r\n$ \r\n \r\n126,020 74 $ \r\n \r\n295,415 85 \r\n \r\n68 379 00 \r\n \r\n$ \r\n \r\n194 399 74 $ \r\n \r\n29541585 \r\n \r\n$ -166 713 19 $ -264,89445 \r\n \r\n$ $ -264 89445 \r\n \r\n$ \r\n \r\n-264 89445 $ \r\n \r\n264,89445 264 89445 \r\n \r\n$ \r\n \r\n-431,607 64 s \r\n \r\n000 \r\n \r\n83997634 \r\n \r\n000 \r\n \r\n$ 408 368 10 $ _ _ _....;o_oo:;.::.. \r\n \r\nSee notes to the general-purpose financial statements  26. \r\n \r\n EXHIBIT\"H\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n30,521 40 $ \r\n \r\n274,692 60 \r\n \r\n$ \r\n \r\n634,025 06 \r\n \r\n634,025 06 \r\n \r\n596,041 71 \r\n \r\n24 112 34 \r\n \r\n51 798 89 \r\n \r\n88,804 93 \r\n \r\n$ \r\n \r\n658137 40 $ \r\n \r\n716 345 35 $ _---'9~5=9'-\",53\"'9'-'2=-4~ \r\n \r\n$ \r\n \r\n662 50 S \r\n \r\n662 50 $ \r\n \r\n66250 \r\n \r\n421,436 59 68 379 00 \r\n \r\n1,028,011 52 3 641 00 \r\n \r\n$ \r\n \r\n662 50 $ \r\n \r\n49047809 S 1,032,31502 \r\n \r\n$ \r\n \r\n657 474 90 $ \r\n \r\n225 867 26 $ \r\n \r\n-72 775 78 \r\n \r\n$ \r\n \r\n264,894 45 $ \r\n \r\n597,408 00 \r\n \r\n$ \r\n \r\n-572 977 50 \r\n \r\n-837 871 95 \r\n \r\n-1.100,582 50 \r\n \r\n$ \r\n \r\n-572 977 50 $ \r\n \r\n-572 977 50 $ \r\n \r\n-503174 50 \r\n \r\n$ \r\n \r\n84,497 40 $ \r\n \r\n-347,110 24 $ \r\n \r\n-575,950 28 \r\n \r\n441 39710 \r\n \r\n1,281,373 44 \r\n \r\n1,857,323 72 \r\n \r\n$ \r\n \r\n525 894 50 $ \r\n \r\n934,263 20 $ 1 281 373 44 \r\n \r\n- 27 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\nSTATEMENT OF CHANGES IN ASSETS AND UABIUTIES \r\nFIDUCIARY FUND TYPE - AGENCY FUND \r\nYEAR ENDED JUNE 30 2001 \r\n \r\nEXHIBIT\"I\" \r\n \r\nVAN PROOYEN FELLOWSHIP FUND \r\nASSETS Cash and Cash Equivalents \r\n \r\nBALANCE JULY 1, 2000 \r\n \r\nADDITIONS \r\n \r\nBALANCE DEDUCTIONS JUNE 30, 2001 \r\n \r\n$ \r\n \r\n000 $ 500000 $ \r\n \r\n4 646 40 s_ _....:3;;;;5,;:;3.:.6.0.. \r\n \r\nLIABILITIES Funds Held for Others \r\n \r\n$ \r\n \r\n000 $ 5.00000 $ \r\n \r\n4 646 40 s_ _....:3.5.3__,60._ \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n-29- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY SCHEDULE OF EXPEND[T\\JRES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY \r\nPROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nEl'lTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nAgnculture, U S Department of Child Nutntion Cluster Pass-Through From Georgia Department of Educotlon Food and Nutntron Program food SeMC:SS School Breakfast Program National School Lunch Program \r\n \r\n10 553 10 555 \r\n \r\nNIA \r\n \r\n$ 12,637 94 \r\n \r\nNIA \r\n \r\n68,832 31 $ \r\n \r\n(2) 441,048 09 (3) \r\n \r\nTolal Child Nutntion Cluster \r\n \r\n$ 81,470 25 $ \r\n \r\n441,048 09 \r\n \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutnbon Program Food Dlslnbu!Jon Program (1) \r\nTotal u S Department of Agriculture \r\n \r\n10 550 \r\n \r\nNIA \r\n \r\n27,326 65 \r\n \r\n$ 108,796 90 $ \r\n \r\n27 32665 468 374 74 \r\n \r\nEducabon, U S Department of Special Educaton Cluster Pass-Through From Georgia Department of Educabon lndrviduals with D1sabllltles Educabon Ad. Part I! - Special Education Flow Through Preschool \r\n \r\n84027 84173 \r\n \r\nNIA $ 65,102 00 $ \r\n \r\nNIA \r\n \r\n4 03310 \r\n \r\n65,102 00 4 033 10 \r\n \r\nTotal Specal Educabon Cluster \r\n \r\n$ 69,13510 $ \r\n \r\n69,135 10 \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Educotlon \r\n \r\nComprehensive School Refo!Tll Demonstrabon Project 84332 \r\n \r\nElementary and Secondary Educabon Act \r\n \r\nTitle! \r\n \r\nAccountabi,ty Grants \r\n \r\n84348 \r\n \r\nGrants to Local Educabonal Agencies \r\n \r\n84 010 \r\n \r\nTrtlell \r\n \r\nEisenhower Professional Development \r\n \r\n84 281 \r\n \r\nTrtle V1 \r\n \r\nlnnovatrve Educauon Program Strategies \r\n \r\n84298 \r\n \r\nClass Size Reduction \r\n \r\n84 340 \r\n \r\nVocational Education - BaS1c Grants to States \r\n \r\nHigh School Program \r\n \r\nBaSIC Grant \r\n \r\n84048 \r\n \r\nTotal U S Department of Education \r\n \r\nNIA \r\n \r\n49,507 66 \r\n \r\n49,507 66 \r\n \r\nNIA \r\n \r\n3,615 00 \r\n \r\nNIA \r\n \r\n55,968 85 \r\n \r\nNIA \r\n \r\n-2,322 79 \r\n \r\nNIA \r\n \r\n9,168 00 \r\n \r\nNIA \r\n \r\n12,456 00 \r\n \r\n3,615 00 55,968 85 \r\n1,660 23 \r\n9,168 00 12,456 00 \r\n \r\nNIA \r\n \r\n4 767 35 \r\n \r\ns $ 202,295 17 \r\n \r\n4 767 35 206 27819 \r\n \r\nTotal Federal Flnandal Assistance NIA  Not Available \r\n \r\n$ 3111092 07 $ _ _ _67'\"'4\"',6\"'5\"'2-93._ \r\n \r\n C[IY Of CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Schedule of Expendlhnes of Federal Awards \r\n(1) The amounts 5hown for the Food Dlstnbubon Program represents the Federally assigned value of nonmonetary assistance for donated C011YT10dltle! recerved and/or consumed by the system duMg the a.irrent fiscal year \r\n(2) Expendttures for the School Breakfast Program were not maintained separately and are mduded ,n the 2001 Nabonal School Lunch Program \r\n(3) Expendrtures tor this program mdude State, and/or Other Funds Expendrtures ara not mamta,ned by fund source \r\nr\u003e MaJor Programs are ldentJ!ied by an estansk ,n front of tho CFDA number \r\nThe School DIStnd did not provide Federal Assistance to any SUbredplent \r\nToa accompanying schedule of expendrturas of Federal awartls Includes the Federal grant ectrvJ!y of the Ctty of Chickamauga Boartl of Educabon and ,s presented on tho modified accrual basis of accounbng which Is the basis of aa:ountlng used 1n the presentabon of the general-purpose finanoal statements \r\n \r\nSee notes to tho gonoral-purposo financial statements \r\n \r\n 31  \r\n \r\n CITY OF CHICKAMAUGA BOARD OE EDUCATION -WALKER COUNTY \r\nSCHEDULE OE STATE REVENUE YEAR ENDED JUNE 30 2001 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Community AffaD'S, Georgia Department of Local Assistance Grant (1) \r\nEducabon Georgia Department of QuaUty Basic Education Dl:red: lnsbucllonal Coat \r\nKindergarten Program Primary Grlldea (1-3) Program Upper Elementary Gracles (4-5) Program Middle School (13-8) Program High School General Education (9-12) Program Vocallonal Laboratory (9-12) Program Students with Diaabilrtles \r\nC.tegory II C.tegory Ill Gifted Stulant - c.tegory VI Remedial Education Program Attemetrve Education Program Media Center Program \r\nStaff and Profeutonal Dewlopment Indirect Cost \r\nCelegorlcalGrllnta Nursing Se.Mees Pr1ndpal Supplements VocationalSuperviaonl, \r\nEducabon Equarizabon Funding Grant Food Services Vocatlonal Education Other State Programs \r\nAt-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Spec:lal EducaUOn Low lnadence Grant Teachers' Rebrement Lottery Programs Asalattve Technology Computers in the Claaaroom \r\nGeorgia State Financing and Investment Commlukm Reimbursement on ConatructkJn Pr0j8dS \r\nOffice of Treasury and Flscal SeMces Pul\u003ehc School Employon Rotlnlmont \r\nCONTRACT Education Georgia Department of Reading First Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\ns \r\n \r\n24,000 00 \r\n \r\ns \r\n \r\n24,000 00 \r\n \r\n223,002 00 7231144 00 353,533 00 827,199 00 818,316 00 239 38S 00 \r\n \r\n15,078 00 134,158 00 216,582 00 \r\n28 433 00 68,403 00 121,480 00 31,388 00 942,673 00 \r\n \r\n43,686 00 4,944 00 8,349 00 \r\n509.234 00 $ \r\n3,181 41 \r\n \r\n35 242 00 \r\n \r\n1,172 79 50,370 46 \r\n9,658 45 1,638 76 11,488 00 5,!550 96 \r\n \r\n681 22 28,642 00 \r\n \r\ns 30,521 40 \r\n \r\n10,189 00 \r\n \r\n223,002 00 723,1144 00 353,533 00 827,19900 818 318 00 239 386 00 \r\n15,078 00 134,158 00 218,582 00 \r\n28,433 00 68 403 00 121,480 00 31,388 00 942,673 00 \r\n43,688 00 4,944 00 8,349 00 \r\n509.234 00 35,242 00 3,181 41 \r\n1,172 79 50,370 46 \r\n9,658 45 1 638 76 1148800 5 550 96 \r\n681.22 2S,642 00 \r\n30 521 40 \r\n10 189 00 \r\n \r\n19 544 00 \r\n \r\n19 544 00 \r\n \r\n(1) Resurface Gonion Lee High School Track See notes to the general-purpose financial \u0026tatements \r\n \r\n$ 5 448,!559 83 $ 62 585 22 $ 30,521 40 S 5,539,848 45 . 32- \r\n \r\n CITY OE CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPBOVEP LOCAL OPTION SALES TAX PROJECTS \r\nVEAR ENDED JUNE 30 2001 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMDUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS(3) \r\n \r\nConstrudJon of a new physical education faality for Gordon Lee Middle School, ccnstrud and eq'\"p a ,_ Sclonce/Malh classroom bulld,ng for Gordon Lee High School, repa~. renovate, modify, retrofit, and reroof aelectod dassrooma and buildings renovate and retrofit for aca:mmodabon of cornputers and other technology for and purchasing tecmology eqwpmem for, Chickamauga Bementary School, Gordon Lee Middle 5chool and Gordon Lee High School \r\n \r\ns 3 TT6 340 00 s 3 ns,340 oo $ 489,815 59 $ 2,090 788 91 1 \r\n \r\nPROJECT STATUS \r\nOngo,ng \r\n \r\n(1) The School Dlsbicl'a onglnal cost osllma1e as speafled In the reaolubOn calUng for the Imposition of Iha Local Option Sates Tax \r\n(2) The School Dlslricl'a a,m,m oabma1a of total cost for the project. lndudos ell cost from prqect lnoept,on to complotlon \r\n(3) The voteno of the Clly of Chickamauga approved the lmpOSltion of a 1% sates tax to fund the obow pro,od and retire assoaated debt tnamod by the City of Chickamauga City Government on the School lllsbict'a behalf Amounts expended for this project may Include sales tax proceeda, 81at8, local property- and/or other fund ovor the hie of the project. \r\n \r\nSee 0018s to t h e ~ flnandal atataments \r\n \r\n-33- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY GENERAL FUND QUALITY BAS1C EDUQATIQN PROGRAM (QBE) \r\nALLOTMENTS ANP EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30 2001 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRlpTION \r\nDlrect lnstructlonal Programs Kindergarten Program Kindergarten Program-Earty Intervention Program Primary Grades (1-3) Program Primary Grades-Earty Intervention (1-3} Program Upper Elementary Grades (-4-5) Program M1\u003c1dle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Student\u0026 wrth Oiseblllbas Category Ill Glfted Student  Category VI Remedial Education Program Altematlve Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS \r\nFROM GEORGIA DEPARTMENT OF \r\nEDUCATION (1 l \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES OPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n231,253 00 $ 196,127 24 $ \r\n \r\n6,399 37 $ 202,526 61 \r\n \r\n5 666 57 \r\n \r\n5,666 57 \r\n \r\n750,729 00 \r\n \r\n745,066 76 \r\n \r\n27,213 54 \r\n \r\nn2 210 30 \r\n \r\n41,216 64 \r\n \r\n41,216 64 \r\n \r\n366,613 00 \r\n \r\n402 36564 \r\n \r\n6,366 62 \r\n \r\n410,732 26 \r\n \r\n657,SQ,400 \r\n \r\n666 932 08 \r\n \r\n20 7 16 \r\n \r\n887 379 24 \r\n \r\n64859200 \r\n \r\n956,350 15 \r\n \r\n36,178 65 \r\n \r\n992,529 80 \r\n \r\n248,243 00 \r\n \r\n249,373 55 \r\n \r\n31,559 8!5 \r\n \r\n280,93340 \r\n \r\n154,756 00 \r\n \r\n197,666 52 \r\n \r\n2,267 35 \r\n \r\n199 933 67 \r\n \r\n224,574 00 \r\n \r\n167,621 83 \r\n \r\n1,481 11 \r\n \r\n189,102 84 \r\n \r\n29,485 00 \r\n \r\n36,063 99 \r\n \r\n178 31 \r\n \r\n36,242 30 \r\n \r\n70 934 00 \r\n \r\n66 954 90 \r\n \r\n88,954 90 \r\n \r\n$ \r\n \r\n3,782,983 00 $ 3,951,596 07 $ 134,092 96 $ 4,08!5,889 03 \r\n \r\n125 974 00 32 549 00 \r\n \r\n133,789 04 4 520 71 \r\n \r\n26 901 05 28 310 57 \r\n \r\n160,690 09 32 831 28 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n3,841,506 00 $ 4 089,905 82 $ 189,304 58 $ 4 279 210 40 \r\n \r\n(1) Comprised of State Funds plus Local Frve MIii Shara \r\n \r\nSee notes to the general-purpose falancial statements \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY GENERAL FUND  QUALITY BASIC EDUCATION PROGRAM /QBE} ALLOTMENTS AND EXPENDITURES  BY S(TE YEAR ENDED JUNE 30. 2001 \r\n \r\nSCHEDULE \"5\" \r\n \r\nSITE Gordon Lee Middle School Gordon Lee High School Chickamauga Elementary School Central Office (AltematJve Education Program) \r\nTOTAL \r\n(1) Compnsed of Sta1e Funds plus Local F,ve Mill Share \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n944,579 00 $ \r\n \r\n1,006,958 57 \r\n \r\n1,287,988 00 \r\n \r\n1,493,034 89 \r\n \r\n1,479,482 00 \r\n \r\n1,585,695 57 \r\n \r\n70,93400 \r\n \r\n$ \r\n \r\n3 11s2,ss3 oo s_....;.4:,;;,0B;:;;5:1i;e_s:.:;.g.;;o3;;. \r\n \r\nSee notes to the general-purpose financial statements  35  \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONIROL REPORTS \r\n \r\n Rll\"i'iE:.I I \\\\'. H1,TO\",' \r\nSTATE AUOITOP \u003c04' 656 2174 \r\n \r\n0EPARTl\\1ENT OF AUDITS AND ACCOUNTS \r\n254 WJ,hmgton S1reet S \\V Suite::! 14 AtlJnta, Georgia 10314-8400 \r\nMay I, 2002 \r\n \r\nHonorable Roy E Barnes, Governor Members of the General Assembly Members ofthe State Board of Education \r\nand Supenntendent and Members of the City ofCluckamauga Board ofEducat10n \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen \r\nWe have audited the financial statements of City of Chickamauga Board ofEducation as of and for the year ended June 30, 2001, and have issued our report thereon dated May I, 2002 This report was qualified for a scope lim1tat1on and for vanous departures from generally accepted accounting pnnc1ples, as identified in the auditor's report on the general-purpose financial statements Except as discussed in the following paragraph, we conducted our audit in accordance with audlhng standards generally accepted in the Umted States of Amenca and the standards applicable to financial audits contamed m Government Auditing Standards, issued by the ColI!ptroller General of the Umted States. \r\nWe did not observe the takmg ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as mventones through aitematlve procedures \r\nCompliance \r\nAs part ofobtaming reasonable assurance about whether City ofChickamauga Board ofEducal!on's financial statements are free of matenal misstatement, we performed tests of its compliance with certam proVJs1ons oflaws, regulations, contracts and grants, noncompliance with wluch could have a direct and matenal effect on the determination offinancial statement amounts However, providing an opm1on on compliance with those prov1s1ons was not an obJectlve of our audit, and accordingly, we do not express such an op1mon The results of our tests disclosed no mstances ofnoncompliance that are requued to be reported under Government Auditing Standards \r\n2001YB-41 \r\n \r\n Internal Control Over Fmanc1al Reportmg \r\nIn planmng and performmg our audit, we considered City of Cluckamauga Board of Educal!on's mtemal control over fmanc1al reportmg m order to determme our audil!ng procedures for the purpose of exprcssmg our opm1on on the financial statements and not to provide assurance on the mternal control over financial reporling However, we noted a certam matter mvolvmg the mternal control over financial reporling and its operalion that we consider to be a reportable cond1l!on. Reportable condil!ons mvolve matters commg to our attenlion relal!ng to significant defic1enc1es m the design or operation ofthe mtemal control over financial reportmg that, m ourJudgment, could adversely affect City of Chickamauga Board ofEducatlon's ab1hty to record, process, surnmanze and report financial data consistent With asserlions ofmanagement m the financial statements. The reportable condilion 1s descnbed m the accompanymg Schedule ofFmdmgs and Queslioned Costs as item FS-7691-0101. \r\nA matenal weakness 1s a condil!on m which the design or operauon of one or more of the mternal control components does not reduce to a relalively low level the nsk that misstatements m amounts that would be matenal m relauon to the financial statements bemg audited may occur and not be detected Witrun a tlmely penod by employees m the normal course of performmg theu assigned funcUons. Our cons1deratlon of the mtemal control over financial reportmg would not necessanly disclose all matters m the mternal control that might be reportable condil!ons and, accordmgly, would not necessarily disclose all reportable condil!ons that are also considered to be nrntenal we~esses. However, we consider item FS-7691-01-01 to be a matenal weakness. \r\nTlus report 1s mtended solely for the mformalion and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awardmg agencies and pass-through entlt1es and 1s not mtended to be and should not be used by anyone other than these specified parlies. \r\nRespectfully submitted, \r\n~-,1al w. c:ld~ \r\nRussell W Hmton State Auditor \r\nRWH:as 2001YB-41 \r\n \r\n Rt'CSlt I W. Ht Nm, \r\nSTATE AUDITOR \r\n{404) 65+3-217A \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 \\Va,;;hmgton Street S V,,/, Sunc 214 \r\nAtlJnto, Georgia 30334-8400 \r\nMay 1, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Supenntendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen. \r\nCompliance \r\nWe have audited the compliance of City of Chickamauga Board of Education with the types of compliance reqwrements descnbed m the US Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits ma3or Federal programs for the year ended June 30, 2001 City of Chlckamauga Board of Education's maJor Federal programs are identified m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each of its ma3or Federal programs 1s the respons1b1lity of City ofC!uckamauga Board of Education's management Our respons1b1lity 1s to express an opm1on on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit ofcompliance m accordance with auditing standards generally accepted m the Uruted States of Amenca, the standards applicable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Uruted States, and 0MB Circular A133, Audl/s of States, Local Governments, and Non-Profit Organizations Those standards and 0MB Circular A-133 reqmre that we plan and perform the audit to obtam reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and matenal effect on a maJor Federal program occurred An audit mcludes examirung, on a test basis, evidence about the City ofChickamauga Board ofEducation's compliance with those reqmrements and performmg such other procedures as we considered necessary m the circumstances \r\n \r\n2001SA-10 \r\n \r\n We beheve that our audit provides a reasonable basis for our op1ruon Our audit does not provide a legal detennmallon on City of Chickamauga Board of Education's comphance with those reqmrements \r\nIn our op1ruon, the City of Chickamauga Board ofEducation compiled, mall matenal respects, with the reqmrements referred to above that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 200I. \r\nInternal Control Over Comphance \r\nThe management of City of Cluckamauga Board of Education 1s responsible for estabhslung and mamtammg effective mtemal control over comphance with requrrements of laws, regulations, contracts and gran1., a,,phcable to Federal programs. In planrung and performing our audit, we considered City of -, 1ckarnauga Board of Education's mtemal control over comphance with reqmrements that cou!J have a direct and matenal effect on a maJor Federal program m order to detennme our audnmg procedures for the purpose of expressmg our op1ruon on comphance and to test and report on mternaJ control over comphance m accordance with 0MB Crrcular A-133. \r\nOur consideration ofthe internal control over comphance would not necessanly disclose all matters m the mternaJ control that I111ght be matenaJ weaknesses A matenal weakness 1s a condition m which the design or operation of one or more of the mternaJ control components does not reduce to a relatively low level of nsk that noncomphance with applicable reqmrements of laws, regulations, contracts and grants that would be matenaJ in relallon to a maJor Federal program bemg audited may occur and not be detected w1thm a llmely pcnod by employees m the normal course of performmg therr assigned functions. We noted no matters mvolvmg the mtemaJ control over compliance and Its operation that we consider to be matenal weaknesses. \r\nThis report 1s mtended solely for the mformation and use ofthe management, members ofthe City of Cluckamauga Board of Education, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~/JJ.\u003cf)~ \r\nRussell W. Hmton State Auditor \r\nRWHas 200JSA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFlNDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7691-99-01 FS-7691-00-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS FaI)ure to M3.!Ilt3.ln General Fixed Assets Account Group Fmdmg Control Number FS-7691-00-01 \r\n \r\nThe School D1stnct has staffing hmitat10ns and budgetary considerations prolnb1tmg the luring ofaddtt!onal adtrunistratlve staff, which would be necessary to resolve tins finding \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CIDCKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\nI. Type of Report Issued on the Fmancial Statements The auditor's opm1on on the City ofChickamauga Board ofEducation's financial statements was qualified for a scope lim1tat1on and for vanous departures from generally accepted accoW1tlng pnnc1ples \r\n2 Reportable Conditions m Internal Control Disclosed by the Audit of the Fmancial Statements The audit report for the City of Cluckamauga Board of Educat10n disclosed a financial statement reportable comhtlon related to the followmg control category \r\nGeneral Fixed Assets \r\nThe reportable condition described above 1s considered to be a matenal weakness. \r\n3 Noncompliance Malena! to the Fmanc1al Statements The amht of the City of Cluckamauga Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements \r\n4 Reportable Conditions m Internal Control Over Ma10r Programs The audit report for the City of Cluckamauga Board of Education did not disclose any reportable cond11Jons m mternal control over maJor programs \r\n5. Type of Report Issued on Compliance for Ma1or Programs The auditor's opm1on on the City of Chickamauga Board of Education's report on compliance with requirements applicable to maJor programs was W1qual1fied \r\n6. Audit Fmdmgs Required to be Reported by Section .510(a) ofOMB C1rcular A-133 The City ofCluckamauga Board ofEducation's audit did not disclose audit findmgs reqUired to be reported by secllon .510(a) ofOMB Circular A-133 \r\n7 Ma1or Programs Federal awards audited as maJor programs are as follows 10.553 Food and Nutnllon Program - Food Services - School Breakfast Program IO 555 Food and Nutnt1on Program - Food Services - National School LWlch Program \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000 00 \r\n9 Low Risk Aud1tee The City of Chickamauga Board of Education qualified as a low nsk aud1tee based on a waiver granted by the U S. Department of Education \r\n-I- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Reportable Cond1uon - Matenal Weakness Repeated From Pnor Year Fmdmg Control Number FS-769I-0I-0l The City ofCluckamauga Board of Education did not mamtam a system-wide General Fixed Assets Account Group w1thm the formal accountmg records as reqwred by generally accepted accountmg pnnc1ples This cond1Uon results in the general-purpose financial statements ofthe School D1stnct being incomplete and not in accordance with generally accepted accounung pnnc1ples Appropnate acuon should be taken by the School D1stnct to estabhsh accounting controls and procedures to proVIde for mamtenance of a General Fixed Assets Account Group These subs1d1aryrecords should mclude an inventory of land, bmldmgs, and equipment owned by the School D1stnct and should include, but may not be hm1ted to, date acqurred, acqms1Uon cost, esllmated replacement cost, location, and descnpt10n Dela!led records should be mainla!ned of all add1t1ons and deleuons to the General Fixed Asset Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b1999-h2000","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, 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, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2000-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with: Fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (City of Chickamauga Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga--fast","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, 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-be33-bc4-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Chickamauga--fast","Periodicals--fast","Statistics--fast"],"fulltext":"STATE OF GEORGIA \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\nGA AgOo \r\n \r\n \r\n \r\nR # \r\n \r\nJ \r\n \r\n33 \r\n \r\nc4 \r\n \r\n)l}9Q-clOoO \r\n \r\n00 00000 0 0 \r\n1776 \r\n \r\nI \r\nCITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\n \r\nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 \r\nRussell W. Hinton State Auditor \r\n \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY -TABLEOFCONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION _ SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS \r\nEXHIBITS \r\n \r\nGENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES AND ACCOUNT GROUP \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nD NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS - \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITIJRES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITIJRES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nANALYSIS OF \r\n \r\nEXPENDITIJRE REQUIREMENTS \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\n \r\n4 \r\n \r\nOVERALL \r\n \r\n5 \r\n \r\n. BYPROGRAM \r\n \r\nPage \r\n2 \r\n4 \r\n7 8 \r\n20 22 \r\n24 \r\n26 28 \r\n30 31 33 34 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY -TABLEOFCONTENTS- \r\nSECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nSECTIONllI AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS ~Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV \r\n. \r\nFINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  \r\n \r\n \r\nSECTION I FINANCIAL \r\n \r\n- \r\n \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-S400 \r\nJune 27, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general purpose financial statements ofthe City ofChickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Chickamauga Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government AUditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 \r\n \r\nOpInIOn. \r\nAs described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \r\n \r\n2000ARL-13A \r\n \r\n * The general purpose financial statements ofthe Board did not contain a General Fixed \r\nAssets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. \r\n* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. \r\n* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \r\nThe aggregate effects on the general purpose fmancial statements of these variances or omissions have not been determined, but are believed to be material. \r\nIn our opinion, except for the effects on the general purpose financial statements of the matters \r\nreferred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Chickamauga Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\n \r\nIn accordance with Government Auditing Standards, we have also issued our report dated June 27, \r\n2001, on our consideration of the City ofChickamauga Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Chickamauga Board of Ed~cationtaken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of \r\nManagement and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the \r\ngeneral purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. \r\n2000ARL-13A \r\n \r\n A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the pres'~ ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\n.-----R..e.s.pectfully submitted, \r\n \r\nRWH:jb 2000ARL-13A \r\n \r\nRu sell W. Hinton \r\nState Auditor \r\n \r\n \r\n- \r\n \r\n \r\n --------- \r\n \r\nCITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP \r\nJUNE 30, 2000 \r\n \r\nASSETS \r\n \r\nCash and Cash Equivalents \r\n \r\nInvestments \r\n \r\n \r\n \r\nAccounts Receivable \r\n \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nAmount to be Provided in Future Years For Payment of Capital Lease Agreements \r\n \r\nGOVERNMENTAL FUND \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n159,672.36 \r\n \r\n$ \r\n \r\n443,338.94 \r\n \r\n73.83 \r\n \r\n9,019.96 5,562.99 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n443,412.77 $ ====17=4*,2=5.5.'.;;;;,31= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n10,164.09 \r\n \r\n153,221.06 $ \r\n \r\n4,477.09 \r\n \r\n31,825.05 \r\n \r\n4,664.53 \r\n \r\n$ \r\n \r\n163,385.15 $ _---:4::.::0:.c!9~.6~6.~67:- \r\n \r\n$ \r\n \r\n3,983.02 \r\n \r\n9,019.96 5,562.99 \r\n \r\n$ _~2~8~0~,O~27~.6~2=- \r\n \r\n114,722.67 \r\n \r\n$ \r\n \r\n280,027.62 $ _----:.:13::.:=3~!2~8~8.~64~ \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n443,412.77 $ _~17;.;;:4~,2~5~5.~31:... \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. \r\n-2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nTYPES CAPITAL \r\nPROJECTS FUND \r\n \r\n$ \r\n \r\n35,150.94 \r\n \r\n1,066,940.55 \r\n \r\n378,880.45 \r\n \r\n \r\n \r\nACCOUNT GROUP GENERAL \r\nLONG-TERM DEBT \r\n \r\nTOTALS \r\n \r\n---\",..,.-.,..~(Mernorand urn On Iy)~...,....,....~ \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n194,823.30 $ \r\n \r\n303,369.82 \r\n \r\n1,510,279.49 \r\n \r\n1,981,002.68 \r\n \r\n378,954.28 \r\n \r\n87,489.25 \r\n \r\n9,019.96 5,562.99 \r\n \r\n5,761.25 6,718.05 \r\n \r\n______ $ \r\n \r\n6~4~,7:.....:1~4.~00::_ \r\n \r\n64,714.00 \r\n \r\n11 ,803.88 \r\n \r\n$ 1,480,971.94 $ \r\n \r\n64,714.00 $ 2,163,354.02 $ 2,396,144.93 \r\n \r\n$ \r\n \r\n10,164.09 \r\n \r\n157,698.15 $ \r\n \r\n101,085,52 \r\n \r\n31,825.05 \r\n \r\n26,672.29 \r\n \r\n$ \r\n \r\n145,830.40 \r\n \r\n4,664.53 145,830.40 \r\n \r\n2,088.46 \r\n \r\n 53,768.10 \r\n \r\n53,768.10 \r\n \r\n$ \r\n \r\n64,714.00 \r\n \r\n64,714.00 \r\n \r\n11,803.88 \r\n \r\n \r\n \r\n$ \r\n \r\n199,598.50 $ \r\n \r\n64,714, .00 $ \r\n \r\n468,664.32 $ \r\n \r\n141,650.15 . \r\n \r\n$ \r\n \r\n839,976.34 \r\n \r\n441,397.10 \r\n \r\n0.00 \r\n \r\n$ 1,281,373.44 \r\n \r\n$ 1,480,971.94 $ \r\n \r\n$ \r\n \r\n3,983.02 $ \r\n \r\n4,350.79 \r\n \r\n9,01~.96 \r\n5,562.99 839,976.34 441,397.10 \r\n \r\n5,761.25 6,718.05 1,491,827.68 365,496.04 \r\n \r\n394,750.29 \r\n \r\n380,340.97 \r\n \r\n$ 1,694,689.70 $ 2,254,494.78 \r\n \r\n64,714.00 $ 2,163,354.02 $ _ _2,396,144.93 \r\n \r\n- 3 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\nTotal Revenues \r\n \r\nEXPENDITURES \r\n \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\n \r\n \r\n \r\nTotal Expenditures \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nCapital Leases Operating Transfers In Operating Transfers Out \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\nExcess of Revenues and Other Financing Sources \r\n \r\n \r\n \r\nover (under) Expenditures and Other Financing Uses \r\n \r\nFUND BALANCE JULY 1 \r\n \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 4,785,646.02 $ \r\n338,328.21 281,856.91 \r\n \r\n93,069.77 258,696.72 \r\n409,366.66 \r\n \r\n$ 5,405,831 .14 $ _ _.:.7;:.61.:.l,.:.,:13::.:3:.:.1. .:.::5:... \r\n \r\n$ 3,841,478.18 $ \r\n244.235.76 145.377.36 153.858.21 154,760.61 345.871.23 76,404.17 419.625.17 \r\n3,167.50 \r\n \r\n141.060.78 50,412.41 16.035.29 \r\n500.00 16.622.60 \r\n79,542.80 482.236.45 \r\n \r\n11.803.88 731.34 \r\n \r\n$ 5,384.778.19 $ _---:7:..::9:.::::8c:9:.::.;45~.5~5::... \r\n \r\n \r\n$ \r\n \r\n21.052.95 $ _ _~-3~7~,8:...:.;12.~.::.;40::... \r\n \r\n$ \r\n \r\n64,714.00 \r\n \r\n$ \r\n \r\n40.000.00 \r\n \r\n-33.913.00 \r\n \r\n-40,000.00 \r\n \r\n$ \r\n \r\n6.087.00 $ _ _~2:::::4:.t.:..7..,!;14:!.:.~00::... \r\n \r\n$ \r\n \r\n27.139.95 $ \r\n \r\n-13.098.40 \r\n \r\n252.887.67 \r\n \r\n144.283.39 \r\n \r\n3.258.71 -1,155.06 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n280,027.62 $ _ .....:.;13~3~.2;;;;;8,;;;,;8.,;;;,64~ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. \r\n-4- \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n_ _ _(Memorandum Onl'il \r\n \r\n_ \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n274,692.60 $ 5,153,408.39 $ 4,731,093.76 \r\n \r\n258,696.72 \r\n \r\n499,538.35 \r\n \r\n596,041.71 \r\n \r\n934,369.92 \r\n \r\n868,979.35 \r\n \r\n88,804.93 \r\n \r\n780,028.50 \r\n \r\n807,509.94 \r\n \r\n$ \r\n \r\n959,539.24 $ 7,126,503.53 $ 6,907,121.40 \r\n \r\n$ 3,982.538.96 $ 3,984,717.13 \r\n \r\n$ \r\n \r\n662.50 \r\n \r\n1.031.652.52 \r\n \r\n294,648.17 161,412.65 154.358.21 171,383.21 345,871.23 77.066.67 419.625.17 79,542.80 \r\n3,167.50 482.236.45 1.031.652.52 \r\n \r\n298,402.83 207,879.29 153.756.13 156,052.59 346,245.75 \r\n70.959.38 472,493.67 \r\n13,995.06 3.150.00 \r\n458.820.84 734,471.54 \r\n \r\n11,803.88 731.34 \r\n \r\n11.067.87 1,520.97 \r\n \r\n$ 1.032,315.02 $ 7,216,038.76 $ 6.913,533.05 \r\n \r\n$ \r\n \r\n-72,775.78 $ \r\n \r\n-89,535.23 $ \r\n \r\n-.::;6z..:,4.:.,11.:..:,.6:,:5:.,.. \r\n \r\n \r\n \r\n$ \r\n \r\n64,714.00 \r\n \r\n$ \r\n \r\n33.913.00 \r\n \r\n73.913.00 $ \r\n \r\n179.274.38 \r\n \r\n-537.087.50 \r\n \r\n-611 ,000.50 \r\n \r\n-693,169.38 \r\n \r\n$ \r\n \r\n-503.174.50 $ \r\n \r\n-472.373.50 $ _ _-:::.51:.,:::3:.r.::.8:::,95:::,.:.:.;00::... \r\n \r\n$ \r\n \r\n-575.950.28 $ \r\n \r\n-561.908.73 $ \r\n \r\n-520.306.65 \r\n \r\n1.857.323.72 \r\n \r\n2.254,494.78 \r\n \r\n2.775.960.21 \r\n \r\n3.258.71 -1.155.06 \r\n \r\n-1.816.87 658.09 \r\n \r\n$ _ _1,281.373.44 $ _ ..1...694.689.70 $ _..:;2.254,494.78 -5- \r\n \r\n -- ---------, \r\n \r\nCITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL- (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT C\" \r\n \r\n \r\n \r\nREVENUES \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\nBUDGET \r\n \r\n(BUDGET BASIS) \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \r\nDebt Service \r\n \r\n$ 4,689,155.61 $ 4,785,646.02 \r\n \r\n19,544.00 \r\n \r\n322,000.00 \r\n \r\n338,328.21 \r\n \r\n153,000.00 \r\n \r\n281,856.91 \r\n \r\n$ 5,183,699.61 $ 5,405,831.14 \r\n \r\n \r\n \r\n$ 3,756,875.77 $ 3,841,478.18 \r\n \r\n220,319.00 156,866.00 150,400.00 141,917.77 360,640.14 72,110.00 507.465.00 \r\n \r\n244,235.76 145,377.36 153,858.21 154,760.61 345,871.23 76,404.17 419,625.17 \r\n \r\n3,400.00 \r\n \r\n3,167.50 \r\n \r\nTotal Expenditures Excess of Revenues over (under) Expenditures OTHER FINAl:l/CING SOURCES (USES) \r\n \r\n$ 5,369,993.68 $ 5,384.778.19 \r\n$ -186.294.07 $ ....._=.21.!..:.0~5~2':2.95lL \r\n \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ \r\n \r\n40,000.00 \r\n \r\n- \r\n \r\n-33,913.00 \r\n \r\n$ _--.:6~,O::l::8~7.~00::.. \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and O1her Financing Uses $ -186,294.07 $ \r\n \r\n27.139.95 \r\n \r\nFUND BALANCE JULY 1, 1999 \r\n \r\n253.570.57 \r\n \r\n252,887.67 \r\n \r\nAdjustments Food Inventory - Net Change in Period \r\nDonated Commodities Purchased Food \r\n \r\n-664.05 \r\n \r\nFUND I2\u00266.NCE JU~E 30. 2000 \r\n \r\n$ _ ....6~6,612.45 $ 280,027.62 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\nBUDGET \r\n \r\n(BUDGET BASIS) \r\n \r\n$ \r\n \r\n93,378.94 $ \r\n \r\n93,069.77 \r\n \r\n262,463.00 \r\n \r\n258,696.72 \r\n \r\n287,900.00 \r\n \r\n409,366.66 \r\n \r\n$ 643,741.94 $ 761,133.15 \r\n \r\n$ 107,919.94 $ 141,060.78 \r\n \r\n66,809.00 31,065.00 \r\n840.00 \r\n \r\n50,412.41 16,035.29 \r\n500.00 16,622.60 \r\n \r\n79,542.80 \r\n \r\n473,060.00 \r\n \r\n482,236.45 12,535.22 \r\n \r\n$ 679.693.94 $ 798,945.55 \r\n \r\n$ -35,952.00 $ -37.812.40 \r\n \r\n$ \r\n \r\n64,714.00 \r\n \r\n-40,000.00 \r\n \r\n$ _....::2:;;:;4,..:.7..:.;14~.0::::0::.. \r\n \r\n$ -35,952.00 $ -13,098.40 \r\n \r\n77,168.46 \r\n \r\n144,283.39 \r\n \r\n-1.424.41 \r\n \r\n3,258.71 -1.155.06 \r\n \r\n$ \r\n \r\n39,792.05 $ _..:o13~3,288.64 \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -7- \r\n \r\n --------- \r\n \r\nCITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nREPORTING ENTITY \r\n \r\nThe City ofChickamauga Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City ofChickamauga Board ofEducation is detennined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\n \r\nFUND ACCOUNTING \r\n \r\nThe Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \r\n \r\nGeneral Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confonn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \r\n \r\nAltpough \"school activity accounts\" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. \r\n \r\n- \r\n \r\n. \r\n \r\nThe general purpose financial statements account for all State, Federal, Taxes and Other funds under \r\n \r\ncontrol of the Board, in compliance with generally accepted accounting principles applicable to \r\n \r\ngovernmental units, unless otherwise disclosed in these notes. Funds and the account group \r\n \r\npresented in this report are as follows: \r\n \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \r\n \r\nGENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \r\n \r\n-8- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for capital lease obligations. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \r\nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \r\n \r\nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this \r\n \r\n-9- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nemployment period specify that compensation be paid in twelve equal monthly payments beginning \r\nin September 1999 and ending in August 2000. State grants to fund the State's share of these \r\ncontracts 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 \r\nexpenditures and related revenues for contractual services completed prior to June 30, 1999, were \r\nrecorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \r\nBUDGET \r\nThe City of Chickamauga Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\nThe budget process begins when the 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 \r\nleast once in a newspaper of general circulation in the locality. At the next regular meeting ofthe \r\nBoard after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and with the approval ofthe City Council adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA'Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS \r\nCash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws \r\nOCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \r\n \r\n- 10- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHffiIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVESTMENTS \r\n \r\nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value, The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of \r\n \r\n \r\n \r\nTreasury and Fiscal Services, \r\n \r\n \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHffiIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Chickamauga fixed the property tax levy for the 1999 tax year (calendar year) on November 16, 1999 (levy date). Taxes were due on February 25,2000. 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 Chickamauga City Clerk bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board. \r\n \r\nThe tax millage rate levied for the 1999 tax year (calendar year) for the City ofChickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n9.56 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $596,041.71 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $2,151,203.31 has been collected or on June 20, 2002, whichever occurs first. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance ofa Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2000, the Board of Education provided $537,087.50 of SPLOST proceeds to the City Government for debt service on said general obligation debt. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Ballince Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe Board has the following types of interfund transactions: \r\n \r\n- 12- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT \"0\" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\nTotal columns on the general purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face . value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists of anyone of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n- 13- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY EXHIBIT \"D\" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\nAt June 30, 2000, the bank balances were $935,410.43. The amounts ofthe total bank balances are \r\nclassified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust \r\ndepartment or agent but not in the Board's name.) \r\n \r\nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \r\n \r\nRisk Category \r\n \r\n- \r\n \r\n1 \r\n \r\n \r\n \r\n2 \r\n \r\n3 \r\n \r\nBank Balance \r\n$ 100,000.00 0.00 \r\n835,410.43 \r\n \r\nTotal \r\n \r\n$ 935\u0026IQ.43 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by' the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the Board or the Board's agent in the \r\n \r\nBoard's name. \r\n \r\nCategory 2 - \r\n \r\nUninsured or unregistered, with .securities held by the counterparty's \r\n \r\ntrust . \r\n \r\ndepartment or agent in the Board's name. \r\n \r\nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its \r\n \r\ntrust department or agent but not in the Board's name. \r\n \r\n- 14- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nAt June 30, 2000, the carrying value of the Board's total investments was $1,066,940.55. The investments are classified as to risk categories as follows: \r\n \r\nType of Investment \r\nu. S. Government \r\n \r\nRisk Categories \r\n \r\n1 \r\n \r\n2 \r\n \r\n3 \r\n \r\nCarrying Amount \r\n \r\nFair Value \r\n \r\n$.=====o!!=!.o~o $ 3Q3.lQA.80 $====O~.O~O $ 303,104.80 $ 303,104.80 \r\n \r\nLocal Government Investment Pools \r\n \r\nTotal Investments \r\n \r\n763,835.75 763,835.75 \r\n$.....1 .066,940.55 $-.1 ,Ogp,94.0.55 \r\n \r\nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \r\n \r\nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value), Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1,00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days, The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. \r\n \r\n \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\n \r\nNote 4: RISK MANAGEMENT \r\n \r\nThe Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \r\n \r\nThe Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. \r\n \r\nThe Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. \r\n \r\nThe Board is self-insured with regard to unemployment compensation claims, The Board accounts for claims within the 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 Board has not experienced any unemployment claims during the last two years, \r\n \r\nThe Board has purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ 10,000.00 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City ofChickamauga Board ofEducation has entered into a lease agreement as lessee for a bus purchase. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: \r\n \r\n- 16- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY EXHIBIT \"D\" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS . JUNE 30, 2000 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCapital Leases \r\n \r\nBalance July 1, 1999 \r\n \r\n$ 11,803.88 \r\n \r\nAdditions Capital Leases \r\n \r\n64,714.00 \r\n \r\nDeductions Payments \r\n \r\n11,803.88 \r\n \r\nBalance June 30, 2000 \r\n \r\n$ \r\n \r\nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\n2001 2002 2003 2004 2005 \r\n \r\n$ 20,000,00 13,022.48 13,022.48 \r\n \r\n13,022.48 13,022.48 \r\n \r\nTotal Principal and Interest - \r\n \r\nDeduct: Imputed Interest \r\n \r\n$ 72,089,92 7,375.92 \r\n \r\nNet Present Value ofFuture \r\n \r\nMinimum Lease Payments \r\n \r\n$ \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and expenditures in the amount of $61,245.58 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$42,168.95 \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT liD\" \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $5,373.63 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$13,703.00 \r\n \r\nNote 7: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nGSFIC 01/00S-769-048 \r\n \r\n$ 313,446.02 $ 30,521,40 \r\n \r\nThe amounts described in this note are not reflected in the general purpose financial statements. \r\n \r\nNote 8: CONTINGENT LIABILITIES \r\n \r\nAmollllts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 9: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNote 9: RETIREMENT PLANS \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE \r\nEmployees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n2000 1999 1998 \r\n \r\nPercentage Contributed \r\n100% 100% 100% \r\n \r\nRequired Contribution \r\n$ 413,375.26 \r\n$ 417,744.93 $ 391,993.26 \r\n \r\n- 19- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n38,817.52 $ \r\n \r\n0.00 \r\n \r\n9,019.96 5,562.99 \r\n \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Expired Grant Balances Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n53,400.47 $ ====,;;;,;0.=00= \r\n \r\n$ \r\n \r\n3,275.72 \r\n \r\n26,097.43 \r\n \r\n$ _ _--=2:.::9:.r.:,3:.:.7:.,:3...:.;15::.. \r\n \r\n \r\n \r\n$ \r\n \r\n9,019.96 \r\n \r\n5,562.99 \r\n \r\n9,444.37 $ \r\n \r\n$ \r\n \r\n24,027.32 $ \r\n \r\n~O.~OO~ \r\n: . :0.:.: :.00: :. . \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n53,400.47 $ ======0=,0==0 \r\n \r\nSee notes to the general purpose financial statements. - 20- \r\n \r\n EXHIBIT \"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n15,576.54 $ \r\n \r\n105,278.30 $ \r\n \r\n159,672.36 $ \r\n \r\n163,496.41 \r\n \r\n9,019.96 5,562.99 \r\n \r\n5,761.25 6,718.05 \r\n \r\n$ \r\n \r\n15,576.54 $ \r\n \r\n105,278.30 $ \r\n \r\n174,255.31 $ ===17=5:l::,9=7=5..7..1..... \r\n \r\n$ \r\n \r\n1,201.37 \r\n \r\n5,727.62 \r\n \r\n_ _~4,664.53 \r\n \r\n$ _ _...;1:.;.1,593.52 \r\n \r\n \r\n \r\n \r\n$ \r\n \r\n4,477.09 $ \r\n \r\n3,595.62 \r\n \r\n31,825.05 \r\n \r\n26,672.29 \r\n \r\n4,664.53 \r\n \r\n1,424.41 \r\n \r\n$ \r\n \r\n40,966.67 $ _ _--=3;..:.1,692.32 \r\n \r\n- \r\n \r\n$ \r\n \r\n3,983.02 \r\n \r\n$ \r\n \r\n3,983.02 $ \r\n \r\n4,350.79 \r\n \r\n9,019.96 5,562.99 \r\n \r\n5,761.25 6,718.05 \r\n \r\n0.00 $ _ _.:.:10::.;:5:.L:,2:.:.7.:.;8.;.;:;.30::- \r\n \r\n114,722.67 \r\n \r\n127,453.30 \r\n \r\n$ \r\n \r\n3,983.02 $ \r\n \r\n105,278.30 $ \r\n \r\n133,288.64 $ _ _1..:...4~4J.:.2:.=.83::..:.;39=-- \r\n \r\n$ \r\n \r\n15,576.54 $ \r\n \r\n105,278.30 $ \r\n \r\n174,255.31 $ ===17=5:l::,9=75;;;,;..7..1..... \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues  \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services Operation \r\nDebt Service Principal Interest \r\n \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES} \r\nCapital Leases Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n34,690.00 $ \r\n \r\n108,520.16 \r\n \r\n289,537.85 \r\n \r\n58,379.77 \r\n \r\n$ \r\n \r\n432,748.01 $ _ _-,5:;.;:8=,3:.;.7.:;.;9,;.;..77,- \r\n \r\n$ \r\n \r\n58,379.77 \r\n \r\n$ \r\n \r\n482,236.45 \r\n \r\n$ \r\n \r\n482,236.45 $ _ _-,5:;.;:8=,3:.;.7.:;.;9,;.;..77,- \r\n \r\n$ \r\n \r\n-49,488.44 $ \r\n \r\n.:::.;o.~OO:::.... \r\n \r\n$ \r\n \r\n-49,488.44 $ \r\n \r\n0.00 \r\n \r\n71,412.11 \r\n \r\n0.00 \r\n \r\n3,258.71 -1,155.06 \r\n \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general purpose financial statements. \r\n- 22- \r\n \r\n$ \r\n \r\n24,027.32 $ =====O,=OO==. \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nOTHER PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n$ \r\n \r\n150,176.56 \r\n \r\n_ _ _ _ _ _ $ _ _...:..11:..:::9~,8;::2.::..:8.~81.:... \r\n \r\n$ \r\n \r\n150,176.56 $ \r\n \r\n119,828.81 $ \r\n \r\n93,069.77 $ 258,696.72 409,366.66 \r\n \r\n89,554.88 499,538.35 402,026.92 \r\n \r\n761 ,133.15 $ _ _.::..:99:....:11~,~2.::.;0.~15::;... \r\n \r\n$ \r\n \r\n82,681.01 \r\n \r\n50,412.41 16,035.29 \r\n500.00 915.62 $ \r\n \r\n$ _ _1.:.,::5:..::.0,544.33 $ \r\n \r\n$ \r\n \r\n-367.77 $ \r\n \r\n$ \r\n15,706.98 79,542.80 \r\n11,803.88 731.34 \r\n107,785.00 $ 12,043.81 $ \r\n \r\n141,060.78 $ \r\n \r\n351,732.98 \r\n \r\n50,412.41 16,035.29 \r\n500.00 16,622.60 \r\n79,542.80 482,236.45 \r\n \r\n66,510.80 16,830.97 4,308.00 18,777.91 \r\n49.95 13,995.06 458,820.84 \r\n \r\n11,803.88 731.34 \r\n \r\n11,067.87 1,520.97 \r\n \r\n798,945.55 $ _ _9=-4;.:3.t.=,6;..:.15.::..:.::.;35=.- \r\n \r\n-37,812.40 $ \r\n \r\n4~7..L:,5:.=0....:.;4.~80=- \r\n \r\n \r\n \r\n$ \r\n \r\n64,714.00 $ \r\n \r\n64,714.00 \r\n \r\n-40,000.00 \r\n \r\n-40,000.00 $ _ _-..:.:12:.:;0.t.=,6~00.::...:::.;00=.- \r\n \r\n$ \r\n \r\n24,714.00 $ \r\n \r\n24,714.00 $ _ _-..:.:12:.:;0.t.=,6;.;:;.00.::..:.::.;00=.- \r\n \r\n$ \r\n \r\n-367.77 $ \r\n \r\n36,757.81 $ \r\n \r\n-13,098.40 $ \r\n \r\n-73,095.20 \r\n \r\n4,350.79 \r\n \r\n68,520.49 \r\n \r\n144,283.39 \r\n \r\n218,537.37 \r\n \r\n3,258.71 -1,155.06 \r\n \r\n-1,816.87 658.09 \r\n \r\n$ \r\n \r\n3,983.02 $ \r\n \r\n105,278.30 $ \r\n \r\n133,288.64 $ ===14,;,;;4~,2~8;;;,;3.~39~ \r\n \r\n \r\n \r\n- 23- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 \r\n \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY LIABILITIES \r\nCash Overdraft Contracts Payable Retainages Payable \r\nTotal Liabilities FUND EQUITY \r\nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n109,317.05 \r\n \r\n730,659.29 \r\n \r\n_ _ _ _ _ _ $ _ _~2:.:.7....:.4J.:::,6;.:::;92:::..:.~60:::.... \r\n \r\n$ \r\n \r\n839,976.34 $ ==~27,;.;;4~,6~9,;;,;2.~60;;.. \r\n \r\n$ \r\n \r\n75,094.10 \r\n \r\n145,830.40 \r\n \r\n53,768.10 \r\n \r\n$ _ _=.27.:...:;4:.c,6:..::::9=.:2.~60::.... \r\n \r\n$ \r\n \r\n839,976.34 \r\n \r\n0.00 $ \r\n \r\n-$ \r\n \r\n839,976.34 $ \r\n \r\n0:::.:..:::.:.00:. . ;0: . :. 0: :.:.0: . . . \r\n \r\n$ \r\n \r\n839,976.34 $ ===27;..,;4*,6;,;;;,9=2..;;.;60;;.., \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 24- \r\n \r\n EXHIBIT \"G\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n927.99 $ \r\n \r\n110,245.04 $ \r\n \r\n2,561.42 \r\n \r\n336,281.26 \r\n \r\n1,066,940.55 \r\n \r\n1,767,333.80 \r\n \r\n104,187.85 \r\n \r\n378,880.45 \r\n \r\n \r\n87,428.50 \r\n \r\n$ \r\n \r\n441,397.10 $ \r\n \r\n1,556,066.04 $ \r\n \r\n1,857,323.72 \r\n \r\n \r\n \r\n$ \r\n \r\n75,094.10 \r\n \r\n145,830.40 \r\n \r\n_ _.....::5::.:::3,768.10 \r\n \r\n$ \r\n \r\n274,692.60 \r\n \r\n \r\n \r\n \r\n \r\n \r\n$ \r\n \r\n839,976.34 $ 1,491,827.68 \r\n \r\n$ \r\n \r\n441,397-.10 \r\n \r\n441,397.10 \r\n \r\n365,496.04 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n441,397.10 $ 1,281,373.44 $ 1,857,323.72 \r\n \r\n \r\n \r\n$ \r\n \r\n441,397.10 $ 1,556,066.04 $ 1,857,323.72 \r\n \r\n- 25- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Support Services Business Administration \r\nCapital Outlay BUilding and Building Improvements Equipment \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFUND BALANCE JUNE 30 \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n274,692.60 \r\n \r\n$ _ _.....:7:...:1..!,..;,1~9.:.,:5.~58=- \r\n \r\n$ \r\n \r\n71 ,195.58 $ _ _-=2:.:.7..::.4.1.:::,6.:::;92::':\".:.,:60::- \r\n \r\n$ \r\n \r\n155,910.92 $ \r\n \r\n3,641.00 \r\n \r\n872,100.60 \r\n \r\n$ \r\n \r\n159,551 .92 $ _ _.=.87:..:2:J..,1;'~0.:;.:0..:::.;60=-- \r\n \r\n$ \r\n \r\n-88,356.34 $ _ _-~59::...:.7...z.::,4::..:::.0::.':,.:8,:OO=-- \r\n \r\n$ $ _---:-5::.::6:.:::3L..:,4~95::.:..O=.:O=-- \r\n \r\n \r\n597,408.00 \r\n \r\n$ \r\n \r\n-563.495.00 $ _ _.....:5:,::9:..:...7c:.4.:::;08::.:..0=.:0::- \r\n \r\n$ \r\n \r\n-651,851.34 $ \r\n \r\n0.00 \r\n \r\n1.491,827.68 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n839,976.34 $ ====,;;;,;O.~OO;;... \r\n \r\nSee notes to the general purpose financial statements. - 26- \r\n \r\n EXHIBIT \"H\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS YEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30,1999 \r\n \r\n$ \r\n \r\n274,692.60 $ \r\n \r\n29,887.30 \r\n \r\n$ \r\n \r\n596,041.71 \r\n \r\n596,041.71 \r\n \r\n547,757.43 \r\n \r\n17,609.35 \r\n \r\n88,804.93 \r\n \r\n104,162.98 \r\n \r\n$ \r\n \r\n613,651.06 $ \r\n \r\n959,539.24 $ _ _.;:.;68:..:1..z.::,8~0..:.....:7~71..:.-. \r\n \r\n$ \r\n \r\n662.50 $ \r\n \r\n662.50 \r\n \r\n1.028,011.52 $ \r\n_ _--::::3.641.00 \r\n \r\n658.961.54 75.510.00 \r\n \r\n$ \r\n \r\n662.50 $ 1,032.315.02 $ _ _.:..:73:;.:4'-1,;.4;.:.7..;.;1.;;;;.54..;... \r\n \r\n$ \r\n \r\n612,988.56 $ \r\n \r\n-72.775.78 $ _ _....:-5:.:2:.t.:.6~6.;:.;3.:=.:83::... \r\n \r\n$ $ _ _-:=.:53::.:,7.z.:0~'8..:....:7.:.::,50;:::... \r\n \r\n$ \r\n \r\n-537.087.50 $ \r\n \r\n597.408.00 $-1.100,582.50 \r\n \r\n168.274.38 -513.895.00 \r\n \r\n-503.174.50 $ _ _-3=-4~5J.::.6::.20::.:.::.:62=- \r\n \r\n$ \r\n \r\n75,901.06 $ \r\n \r\n-575.950.28 $ \r\n \r\n-398.284.45 \r\n \r\n365.496.04 \r\n \r\n1,857,323.72 \r\n \r\n2,255,608.17 \r\n \r\n$ \r\n \r\n441,397.10 $ 1.281,373.44 $ 1.857,323.72 \r\n \r\n- 27- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \r\n \r\n 10.553  10.555 \r\n \r\nN/A $ \r\nN/A \r\n \r\nTotal Child Nutrition Cluster \r\n \r\n$ \r\n \r\nOther Program \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nFood and Nutrition Program \r\n \r\nFood Distribution Program (1) \r\n \r\n10.550 \r\n \r\nN/A \r\n \r\nTotal U. S. Department of Agriculture \r\n \r\n$ \r\n \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool \r\nTotal Special Education Cluster \r\n \r\n84.027 84.173 \r\n \r\nNlA $ \r\nNlA \r\n \r\n \r\n$ \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nComprehensive SChool Reform Demonstration \r\n \r\n- \r\n \r\nProgram \r\n \r\n \r\n \r\nElementary and 5econcIary Education Act \r\n \r\n84.332 \r\n \r\nNlA \r\n \r\nntle I Grants to Local Educational Agencies \r\nntle II \r\n \r\n. \r\n \r\n84.010 \r\n \r\nNlA \r\n \r\nEisenhower Professional Development ntle VI \r\n \r\n84.281 \r\n \r\nNlA \r\n \r\nInnovative Education Program Strategies Class Size Reduction Vocational Education - Basic Grants to States \r\n \r\n84.298 \r\n \r\nNlA \r\n \r\n84.340 \r\n \r\nNlA \r\n \r\nHigh SChool Program \r\n \r\nBasic Grant . \r\n \r\n84.048 \r\n \r\nNlA \r\n \r\nTotal U. S. Department of Education \r\n \r\n$ \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n13,755.51 \r\n71,065.26 $ \r\n84,820.77 $ \r\n \r\n(2) \r\n458,537.06 (3) \r\n458,537.06 \r\n \r\n23,699.39 \r\n \r\n23,699.39 \r\n \r\n108,520.16 $ _ _~4::::82:.c,2::::3:::::6:::.4::.5 \r\n \r\n50,348.00 $ \r\n3,887.00 \r\n54,235.00 $ \r\n \r\n50,348.00 3,887.00 \r\n54,235.00 \r\n \r\n26,000.00 \r\n \r\n26,693.03 \r\n \r\n38,913.09 \r\n16,000.00 \r\n7.47 11,660.00 \r\n \r\n38,913.09 \r\n15,674.74 \r\n7.47 11,660.00 \r\n \r\n3,361.00 \r\n \r\n3,361.00 \r\n \r\n150,176.56 $ _ _1~50~,:::::544=.3::.3 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n$ \r\n \r\n258,696.72 $ _ _.;;;6,;,:32:0.:.7' ;,.;;8;;:,0;7,;,.~8 \r\n \r\n-28- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. \r\n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe Board did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the  \r\nCity of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \r\n \r\nsee notes to the general purpose financial statements. \r\n \r\n-29- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGRANTS \r\n \r\nEducation, Georgia Department of \r\n \r\nQuality Basic Education \r\n \r\nGeneral and Career Education Programs $ \r\nSpecial Education Programs \r\n \r\nRemedial Education Program \r\n \r\nMedia Center Programs \r\n \r\nStaff Development Programs \r\n \r\n \r\n \r\nIndirect Cost \r\n \r\nMiddle School Incentive Program \r\n \r\nIn-School Suspension \r\n \r\nCounselors Grades 4 and 5 \r\n \r\nTechnology Specialist \r\n \r\nLocal Five Mill Share \r\n \r\nEducational Etlualization Funding Grant \r\n \r\nFood Services \r\n \r\nOther State Programs \r\n \r\nAt-Risk Summer School Program \r\n \r\nHealth Insurance \r\n \r\nInnovative Programs \r\n \r\nPreschool Handicapped Program \r\n \r\nRemedial Summer School Program \r\n \r\nSpecial Education Low Incidence Grant \r\n \r\nTeachers'Retirement \r\n \r\nLottery Programs \r\n \r\nAssistive Technology \r\n \r\nComputers in the Classrooms \r\n \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nCONTRACT Education, Georgia Department of Georgia's Reading Challenge \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n2,899,630.00 355,500.00 49,079.00 119,018.00 31,696.00 799,263.00 121,433.00 34,032.00 11,145.00 28,842.00 -175,768.00 407,536.00 \r\n$ \r\n1,990.14 42,168.95 \r\n5,000.00 6,488.08 2,201.22 7,771.00 5,373.63 \r\n13,703.00 \r\n \r\n$ \r\n34,690.00 \r\n7,420.72 50,959.05 \r\n \r\n19,544.00 \r\n \r\nTOTAL \r\n2,899,630.00 355,500.00 49,079.00 119,018.00 31,696.00 799,263.00 121,433.00 34,032.00 11,145.00 28,842.00 \r\n-175,768.00 407,536.00 \r\n34,690.00 \r\n1,990.14 42,168.95 \r\n5,000.00 6,488.08 2,201.22 7,771.00 5,373.63 \r\n7,420.72 50,959.05 \r\n \r\n13,703.00 \r\n19,544.00 \r\n \r\n$ 4,785,646.02 $ \r\n \r\n93,069.77 $ 4,878,715.79 \r\n \r\nSee notes to the general purpose financial statements. - 30- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECTS \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS \r\n \r\nConstruction of a new physical education facility \r\n \r\nfor Gordon Lee Middle School; Construct and \r\n \r\nequip a new Science/Math classroom building \r\n \r\nfor Gordon Lee High School; Repair, renovate, \r\n \r\nmodify, retrofit, and reroof selected classrooms \r\n \r\nand buildings; renovate and retrofit for \r\n \r\naccommodation of computers and other \r\n \r\ntechnology for and purchasing technology \r\n \r\nequipment for, Chickamauga\" Elementary School, \r\n \r\nGordon Lee Middle School and Gordon Lee \r\n \r\nHigh School \r\n \r\n$ \r\n \r\n3,776,340.00 $ \r\n \r\n \r\n3,776,340.00 $ \r\n \r\n1,031 ,652.52 $ =.-.1':;;.05;,;9;,;\"1;.;;3~6.;;;,39;;\" \r\n \r\n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The Board's current estimate of total cost for these projects. Includes all cost from project inception to completion. \r\n(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire \r\nassociated debt incurred by the City of Chickamauga City Govemment on the Board's behalf. Amounts expended for these projects may include sales tax proceeds. state. local property taxes and/or other funds over the life of the projects. \r\n \r\n \r\n- \r\n \r\n \r\n \r\n \r\nsee notes to the general purpose financial statements. \r\n31 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\nSCHEDULE \"4\" \r\n \r\n \r\n \r\nANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\n \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nMinimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis \r\nSalaries Operations \r\nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \r\nExpenditures per Audit \r\nAmount of Underexpenditure for Total Allotment \r\n \r\nFOURTEEN WEIGHTED AND MEDIA CENTER \r\nPROGRAMS \r\n \r\n100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \r\n \r\n$ \r\n \r\n3,423,227.00 $ _ _-.:..:10:.::;9~,8;..:.1.::..:0.~OO::... \r\n \r\n$ \r\n \r\n3,532,034.18 \r\n \r\n185,630.35 $ _ _...;.16;.;0.:.;,8;.;.0.;.9.;.;..79.;. \r\n \r\n$ \r\n \r\n3,717,664.53 \r\n \r\n-33,919.06 \r\n$ _ _..:3:;.z.;6,~8;..:;3.:..:7.,...;.4.::..:5...;.47.:... \r\n \r\n$ \r\n \r\n0.00 $ =====0...0...0.... \r\n \r\n \r\n \r\nSee notes to the general purpose financial statements. \r\n- 33 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY ANAl\"YSIS OF MINIMUM EXPENPITURE REQUIREMENTS - BY PROGRAM \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 \r\n \r\nGENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3 Grades 4  5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs \r\nSPECIAL EDUCATION PROGRAMS RegUlar Programs Category III (*) Category VI (Gifted) (*) Total Special Education Programs \r\nREMEDIAL EDUATION PROGRAMJ:) Total Fourteen Weighted Programs \r\n~IA CENT..ER pROGRAMS, \r\nSalaries Operations \r\nTotal Media center Programs \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF \r\n \r\nREQUIRED \r\n \r\nORIGINAL \r\n \r\n% \r\n \r\nORIGINAL \r\n \r\nMID-TERM \r\n \r\n$ \r\n \r\n222,372.00 \r\n \r\n$ \r\n \r\n200,134.80 $ \r\n \r\n675,936.00 \r\n \r\n608,342.40 \r\n \r\n$ \r\n \r\n898,308.00 90 $ \r\n \r\n808,477.20 $ \r\n \r\n332,603.00 90 \r\n \r\n299,342.70 \r\n \r\n723,210.00 90 \r\n \r\n650,889.00 \r\n \r\n440,362.00 90 \r\n \r\n396,325.80 \r\n \r\n298,432.00 90 \r\n \r\n268,588.80 \r\n \r\n206,715.00 90 \r\n \r\n186,043.50 \r\n \r\n$ 2,899,630.00 \r\n \r\n$ 2,609,667.00 $ \r\n \r\n0.00 0.00 \r\n--=0:.:;.0:.::...0 \r\n \r\n$ \r\n \r\n154,289.00 90 $ \r\n \r\n138,860.10 $ \r\n \r\n201,211.00 90 \r\n \r\n181,089.90 \r\n \r\n$ \r\n \r\n355,500.00 \r\n \r\n$ \r\n \r\n319,950.00 $ \r\n \r\n$ \r\n \r\n49,079.00 90 $ \r\n \r\n44,171.10 $ \r\n \r\n$ 3,304,209.00 \r\n \r\n$ 2,973,788.10 $ \r\n \r\n$ \r\n \r\n94,319.00 90 $ \r\n \r\n84,887.10 $ \r\n \r\n24,699.00 100 \r\n \r\n24,699.00 \r\n \r\n$ \r\n \r\n119,018.00 \r\n \r\n$ \r\n \r\n109,586.10 $ \r\n \r\n0.00 \r\n--=0:.:;.0:.::...0 --=0:.:,:.0:.::...0 --=0\"\".0\"'-0 \r\n0.00 --=0\"\".0\"'-0 \r\n \r\nTotal Fourteen Weighted and Media center Programs $ 3,423,227.00 \r\n \r\n$ 3,083,374.20 $ _ ....._ ...0.,;;;.0-.0 \r\n \r\nSTAFF DEVELOPM~T PROGRAMS \r\nCost of Instruction Professional Development \r\n \r\n$ \r\n \r\n10,303.00 \r\n \r\n$ \r\n \r\n10,303.00 $ \r\n \r\n0.00 \r\n \r\n21,393.00 \r\n \r\n21,393.00 \r\n \r\n0.00 \r\n \r\nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. \r\n \r\n$ \r\n \r\n31,696.00 100 $ \r\n \r\n31,696.00 $ .....====0...0..0... \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 34  \r\n \r\n SCHEDULE \"5\" \r\n \r\nEDUCATION TOTAL \r\nREQUIRED \r\n \r\nACTUAL EXPENDITURES \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nAMOUNT OF UNDEREXPENDITURE \r\nFOR REQUIRED ALLOTMENT \r\n \r\n$ \r\n \r\n200,134.80 $ \r\n \r\n177,462.88 $ \r\n \r\n9,671.00 $ \r\n \r\n187,133.88 \r\n \r\n608,342.40 \r\n \r\n700,697.80 \r\n \r\n30,375.70 \r\n \r\n731,073.50 \r\n \r\n$ \r\n \r\n808,477.20 $ \r\n \r\n878,160.68 $ \r\n \r\n40,046.70 $ \r\n \r\n918,207.38 $ \r\n \r\n0.00 \r\n \r\n299,342.70 \r\n \r\n369,665.91 \r\n \r\n12,219.77 \r\n \r\n381,885.68 \r\n \r\n0.00 \r\n \r\n650,889.00 \r\n \r\n661,978.54 \r\n \r\n11,743.22 \r\n \r\n673,721.76 \r\n \r\n0.00 \r\n \r\n \r\n \r\n396,325.80 \r\n \r\n514,435.27 \r\n \r\n24,512.33 \r\n \r\n538,947.60 \r\n \r\n0.00 \r\n \r\n268,588.80 \r\n \r\n315,824.53 \r\n \r\n11,924.94 \r\n \r\n327,749.47 \r\n \r\n0.00 \r\n \r\n186,043.50 \r\n \r\n228,062.19 \r\n \r\n20,941.03 \r\n \r\n249,003.22 \r\n \r\n0.00 \r\n \r\n$ 2,609,667.00 $ 2,968,127.12 $ \r\n \r\n121,387.99 $ 3,089,515.11 \r\n \r\n$ \r\n \r\n138,860.10 $ \r\n \r\n181,089.90 \r\n \r\n$ \r\n \r\n319,950.00 $ \r\n \r\n$ \r\n \r\n44,171.10 $ \r\n \r\n$ 2,973,788.10 $ \r\n \r\n190,353.40 $ 144,839.45 335,192.85 $ 100,597.71 $ 3,403,917.68 $ \r\n \r\n2,556.07 $ \r\n \r\n192,909.47 \r\n \r\n36,275.86 \r\n \r\n181,115.31 \r\n \r\n38,831.93 $ _.......::3:.:,.74~,O;;:2:.:4.:.:.7..:;.8 \r\n \r\n589.87 $ _~1~0.:..o1,..:.:18~7.::::.5:::..8 \r\n \r\n160,809.79 $ 3,564,7-27.47 \r\n \r\n$ \r\n \r\n84,887.10 $ \r\n \r\n128,116.50 \r\n \r\n$ \r\n \r\n128,116.50 \r\n \r\n24,699.00 \r\n \r\n$ _ _..:.24..:.l,8;;:2:.::0.:.::.5;;..~ \r\n \r\n24,820.56 \r\n \r\n$ \r\n \r\n109,586.10 $  128,116.50 $ \r\n \r\n24,820.56 $ _~1..:.52:.l,;::.:93~7.:.::.0.::.6 \r\n \r\n$ 3,083,374.20 . $ 3,532,034.18 $ \r\n \r\n185,630.35 $ 3,717,664.53 $ \r\n \r\n0.00 0.00 0.00 \r\n0.00 0.00 \r\n......_ _0;,;;.0.0. \r\n \r\n$ \r\n \r\n10,303.00 \r\n \r\n21,393.00 \r\n \r\n$ ...........3.1.;,;;,6.9.6..0...0. \r\n \r\n$ \r\n \r\n19,441.91 $ \r\n \r\n19,441.91 \r\n \r\n12,254.10 \r\n \r\n12,254.10 \r\n \r\n$ \r\n \r\n31,696.01 $ \r\n \r\n31,696.01 $ \r\n \r\n...._ ..0.;,;;.0.0. \r\n \r\n 35  \r\n \r\n  \r\n \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n \r\n RUSSELL W. HI\"'TON \r\nSTATE AUDITOR \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washingtoll Strcct. S.W., Suitc 214 \r\n- Atlanta, Gcor!.!ia .~()334-X4()() \r\nJune 27, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of City ofChickamauga Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated June 27,2001. 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 stan4ards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. \r\nCompliance \r\nAs part ofobtaining reasonable assurance about whether City ofChickamauga Board ofEducation'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 offmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2000YB-40A \r\n \r\n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect City ofChickamauga Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. ,The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7691-00- \r\n01. \r\nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition noted above is considered to be a material weakness. \r\nThis report is intended solely for the information and use of management, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\n/\"\",,--:;.R-.;;e;.::,spectfully submitted, \r\n \r\n \r\nRWH:jb 2000YB-40A \r\n \r\nsell W. Hinton e Auditor \r\n \r\n \r\n \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 27, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\n \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of City of Chickamauga Board of Education with the types of \r\nu.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular \r\nA-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. City of Chickamauga Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Chickamauga Board of Education's management. Our responsibility i~ to express an opinion on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could \r\nhave a direct and material effect on a major Federal program occurred. An audit includes examining, \r\non a test basis, evidence about the City ofChickamauga Board ofEducation's compliance with those \r\n \r\n2000SA-IOA \r\n \r\n requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements. \r\nIn our opinion, the City ofChickamauga Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000. \r\nInternal Control Over Compliance \r\nThe management of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3. \r\nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its \r\n \r\noperation that we consider to be material weaknesses. \r\nThis report is intended solely for the information and use ofmanagement, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:jb 2000SA-IOA \r\n \r\nRu sell W. Hinton State Auditor \r\n \r\n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7691-98-01 FS-7691-99-01 \r\n \r\nFurther Action Not Warranted Unresolved - No Corrective Action Implemented \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7691-99-01 \r\n \r\nThe Board has staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, which would be necessary to resolve this finding. \r\n \r\n \r\n \r\n \r\n \r\n, \r\n \r\n- \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. TYPe of Report Issued on the Financial Statements The auditor's opinion on the City ofChickamauga Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Chickamauga Board of Education disclosed a financial statement reportable condition relat~d to the following control category. \r\n \r\nGeneral Fixed Assets \r\n \r\nThe reportable condition described above is considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Chickamauga Board of Education disclosed no instances of noncompliance that were deemed to be material t\u003c;\u003e the financial statements. \r\n \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City of Chickamauga Board of Education did not disclose any reportable conditions in internal control over major programs. \r\n \r\n5. Type ofReport Issued on Compliance for Major Programs The auditor's opinion on the City of Chickamauga Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n, \r\n \r\n \r\n \r\n \r\n \r\n6. Audit Findings Required to be Reported by Section .510CID ofOMB Circular A-B3 \r\n \r\nThe City ofChickamauga Board ofEducation's audit did not disclose audit findings required \r\n \r\nto be reported by section .51O(a) ofOMB Circular A-133. \r\n \r\n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n \r\n9. Low Risk Auditee The City of Chickamauga Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. \r\n \r\n \r\n- 1- \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\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-7691-00-01 The City ofChickamauga Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n \r\n-2- \r\n \r\n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":9,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":9}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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