{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2007-h2008","title":"Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n29 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n3 SCHEDULE OF STATE REVENUE \n \n32 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n34 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n37 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 1, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Dougherty County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility ofthe Dougherty County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Dougherty County Board of Education's discretely presented component unit. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for Dougherty County Stadium Authority is based on the report ofother auditors. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Dougherty County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provides a reasonable basis for our opinions. \n2008ARL-12X \n \n In our opinion, based on our audit and the report ofother auditors, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information ofthe Dougherty County Board ofEducation, as of June 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated October 1, 2009, on our consideration of the Dougherty County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through xiv and page 29 respectively, are not a required part ofthe basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We and the other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dougherty County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements, and in our opinion, based on our audit and the report of other auditors, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n~~~.~~ State Auditor \nRWH:as 2008ARL-12X \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2008. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nFinancial Highlights \nFinancial highlights for fiscal year 2008 are as follows: \nThe School District's financial status continued to improve in fiscal year 2008.  Total Net Assets increased more than $10.4 million in fiscal year 2008.  The Unrestricted Net Assets deficit balance reported at the end of fiscal year 2007 for Governmental Activities was eliminated by the end of fiscal year 2008. The balance at June 30, 2008, was a positive $2.8 million.  Fund balance for the Governmental Funds - General Fund increased $2.9 million in fiscal year 2008. \nUsing the Basic Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nSystem-wide Statements \nThe Statement of Net Assets and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net assets are an indicator of whether the School District's financial position is improving or deteriorating. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the System-wide Statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nThe Statement of Activities reflects the governmental activities of the School by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School's major funds. Funds are accounting devices the School District uses to keep track o( general operations, Federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two major funds - Governmental Funds and Fiduciary Funds. \nGovernmental Funds \nMost of the School District's financial activities are reported in governmental funds. The fund statements provide more detailed information about the School District's funds, focusing on its most significant \"major\" funds - not the School District as a whole. These funds record how money flows in and out within the current period, and the reports the balances remaining at yearend available for spending in future periods. The governmental fund statements provide a shortterm view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement ofNet Assets and the Statement ofActivities) and governmental funds are reconciled in the financial statements. \nThe School District's governmental funds are the General Fund, Capital Projects Fund, and Debt Service Fund. General operations, the school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the General Fund. \nFiduciary Funds \nThe School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The School District excludes these fund activities from the System-wide financial statements because these fund assets cannot be used to finance operations. \n11 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nPresentation of Financial Data \n \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2007 and fiscal year 2008. \n \nStatement of Net Assets (Analysis of the School District as a Whole) \n \nAs previously stated above, the Statement ofNet Assets presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2007 and fiscal year 2008. \n \nAssets Current and Other Assets Capital Assets, Net \nTotal Assets \nLiabilities Current and Other Liabilities Long-Term Liabilities \nTotal Liabilities \n \nTable 1 Net Assets (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nIncrease/ \n \nYear 2008 (Restated) \n \nDecrease \n \n$ 56,335 213,475 \n$ 269,810 \n \n$ 28,864 213,985 \n$ 242,849 \n \n$ 27,471 -510 \n$ 26,961 \n \n$ 37,362 2,029 \n$ 39,391 \n \n$ 19,519 3,331 \n$ 22,850 \n \n$ 17,843 -1,302 \n$ 16,541 \n \nNet Assets Invested in Capital Assets, Net ofRelated Debt Restricted Unrestricted \nTotal Net Assets \n \n$ 212,559 15,040 2,820 \n$ 230.419 \n \n$ 212,440 7,664 -105 \n$ 219.999 \n \n$ 119 7,376 2,925 \n$ 10.420 \n \nThe $26.9 million increase in Total Assets is the net result of an increase in Current and Other Assets and a Decrease in Capital Assets. A significant p01tion of the increase reported in Current and Other Assets is due to the cash receipt of $16.0 million from a Tax Anticipation Note issued on June 30, 2008. In prior years, these funds were not received until after the start of the next fiscal year. The receipt of these funds is offset by an equal liability for the Tax Anticipation Note. The decrease in Net Capital Assets is primarily due to the demolition of an old middle school building. The cost of renovating the old school building was determined to be \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \ntoo costly and a new building was built in the adjacent lot. The value of the building at the time of the disposal was $2.9 million. These capital projects were funded by a 1 percent special purpose local option sales tax approved by the voters of Dougherty County. All capital projects were part of a long-range facilities plan to upgrade all of the School District's schools and facilities. See Table 5 for an analysis of the increase in Capital Assets. \nThe Tax Anticipation Note issued on the last day of the fiscal year for $16.0 million is a liability to the School District. The Note has a maturity date of December 31, 2008, and is reported as a Current Liability. The Note will be paid from taxes and other available funds received between July, 2008 and December, 2008. Typically, in prior years, this debt was not incurred until after the start of the next fiscal year. The remaining Current Liabilities include, in part, balances due to Contractors and Architects for major capital projects. The decrease in Long-Term Liabilities was primarily due to the elimination of bond debt and payment of capital lease obligations. See Table 6 for complete analysis of the reduction on Long-Term Debt at June 30. Restricted or designated assets are assets that must be used for a specific purpose. No assets were restricted for payment of current bond debt as all bond debt was retired in March, 2008. Restricted assets increased $7.3 million and include funds restricted for bus replacement, $0.1 million; funds restricted for future debt service, $0.8 million; and funds restricted for capital projects, $14.2 million. \nUnrestricted Net Assets for Governmental Activities increased from a $0.1 million deficit balance at the end of fiscal year 2007 to a $2.8 million positive balance at the end of fiscal year 2008. This can be primarily attributed to the elimination of the long-term bond debt (shown in Table 1 above) and the increase in fund balances for both the General Fund and the District-wide Capital Project Funds. See The School District's Funds below. \nStatement of Activities Table 2 shows the changes in net assets for fiscal year 2007 and fiscal year 2008 as reported on the Statement of Activities. \nIV \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nTable 2 Change in Net Assets \n(in Thousands) \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nIncrease/ \n \nYear 2008 \n \n(Restated) \n \nDecrease \n \n$ 1,662 105,284 282 \n \n$ 1,797 $ -135 \n \n102,567 \n \n2,717 \n \n5,433 \n \n-5,151 \n \nTotal Program Revenues \n \n$107,228 \n \n$109,797 $ -2,569 \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Special Items Loss on Disposal ofBuilding \n \n$ 40,108 39 \n18,657 435 \n10,557 725 \n3,084 \n-2,892 \n \n$ 34,880 $ 5,228 39 \n \n17,417 529 \n10,298 1,187 2,965 \n-813 \n \n1,240 -94 \n259 -462 119 \n-2,079 \n \nTotal General Revenues \n \n$ 70,713 \n \n$ 66,463 $ 4,250 \n \nTotal Revenues \n \n$177,941 \n \n$176,260 $ 1,681 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General and School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central and Other Support Services Operations ofNon-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \nTotal Program Expenses \n \n$107,710 \n4,540 5,867 3,301 11,293 2,017 13,346 5,772 4,231 \n536 570 8,338 \n$167,521 \n \n$ 97,862 \n4,612 5,475 3,202 10,770 2,079 12,472 5,712 3,646 \n468 547 8,159 110 \n$155,114 \n \n$ 9,848 \n-72 392 \n99 523 -62 874 \n60 585 \n68 23 179 -110 \n$ 12,407 \n \nIncrease in Net Assets \n \n$ 10.420 \n \n$ 21,146 $ -lQ,726 \n \nV \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nRevenues received from Federal and State grants and allotments comprise the major portion of the increase in Operating Grants and Contributions. An additional $2.7 million in Federal and State grants were received in fiscal year 2008 and were used to fund various instructional programs and staff development costs. Bus replacement funds received from the State are reported as Capital Grants and Contributions. In fiscal year 2008, the School District entered into a four year lease-purchase agreement for the purchase of 12 new buses. These bus replacement funds are used to pay the annual lease-purchase payments. No other Capital Outlay grants were received from the State in fiscal year 2008 which accounts for the $5.1 million decrease in Capital Grants and Contributions and Total Program Revenues decreased $2.6 million. \nWhile Program Revenues decreased, General Revenues from taxes and other special items increased $4.2 million. The increase in general revenues such as property taxes and sales taxes totaled $6.4 million but these increases were offset by a decrease in investments earnings and the recording of the loss on disposal of the middle school building. A revaluation of property by the county in calendar year 2007 resulted in the $5.2 million increase in Property Taxes for fiscal year 2008. Although program revenues make up a majority of the revenues, the School District is still dependent upon tax revenues for the funding of governmental activities. \nTotal Program Expenses increased $12.4 million for fiscal year 2008 compared to the previous fiscal year. The greatest increases occurred in the categories of Instruction, Improvement of Instructional Services, General and School Administration, Maintenance and Operation and Central and Other Support Services. A 3 percent state mandated certified salary raise, the high cost of gasoline and utilities, the additional costs of equipping, staffing and supplying a new elementary school and the purchase of new textbooks are the primary factors contributing to the expenditure increase in these categories. \nDescriptions of Expense Categories \nInstruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local School District. \nVl \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. Business Administration includes the financial and warehouse operations of the School District. Maintenance and Operation ofPlant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. Student Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. Central and Other Support Services include all other support services including personnel services, management information services, and public relations services. Enterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. Community Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. Food Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. Governmental Activities Table 3 shows, for governmental activities, the total cost of services and the net cost of services for both fiscal year 2007 and fiscal year 2008. This information is presented on the Statement of Activities. The Net Cost of Services reflects the balance of costs that were funded by taxes and other General Revenues. \nVll \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nTable 3 Governmental Activities \n(in Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2008 Year2007 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2007 \n \nYear2008 Restated \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations ofNon-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 107,710 $ 97,862 $ 33,482 $ 21,256 \n \n4,540 5,867 3,301 1,880 9,413 2,017 13,346 5,772 3,123 1,108 \n \n4,612 5,475 3,202 1,719 9,051 2,079 12,472 5,712 2,957 \n689 \n \n2,784 2,371 1,115 -823 4,810 1,960 7,983 3,217 3,093 \n527 \n \n2,840 2,116 \n961 -947 4,554 1,879 6,969 2,969 2,892 521 \n \n536 570 8,338 \n \n468 547 8,159 110 \n \n536 569 -1,332 \n \n441 547 -1, 791 110 \n \nTotal Expenses \n \n$ 167,521 $ 155,114 $ 60,292 $ 45,311 \n \nTotal Expenses increased $12.4 million and the portion of expenses funded from local taxes increased $15.0 million. Food Service expenses were totally funded by sources other than local taxes. \n \nThe School District's Funds \n \nTable 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances. Capital Projects and Debt Service Funds are combined for presentation purposes. \n \nvm \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(in Thousands) \n \nRevenues \n \nGeneral Fund \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ 40,399 435 \n92,402 23,722 \n1,662 360 \n3,084 \n \nTotal Revenues \n \n$ 162,064 \n \nExpenditures \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services \nPrincipal Interest \n \n$ 100,800 49,594 504 570 8,180 \n373 4 \n \nTotal Expenditures \n \n$ 160,025 \n \nExcess of Revenues over (under) Expenditures $ 2,039 \n \nOther Financing Sources (Uses) Capital Leases Transfers In/Out \n \n$ \n \n981 \n \n-139 \n \nTotal Other Financing Sources (Uses) \n \n$ \n \n842 \n \nNet Change in Fund Balance \n \n$ 2,881 \n \nFund Balances - Beginning (Restated) \n \n1,473 \n \nFund Balances - Ending \n \n$ 4,354 \n \nCapital Projects \nand Debt Service \n \nTotals \n \n$ 40,399 \n \n$ 18,657 \n \n19,092 \n \n92,402 \n \n23,722 \n \n1,662 \n \n365 \n \n725 \n \n3,084 \n \n$ 19,022 $ 181,086 \n \n$ 2,993 362 \n7,096 1,090 ----=2=5 $ 11,566 $ 7,456 \n \n$ 103,793 49,956 504 570 8,180 7,096 \n1,463 29 \n$ 171,591 \n$ 9,495 \n \n$ \n \n981 \n \n$ \n \n139 \n \n0 \n \n$ \n \n139 $ \n \n981 \n \n$ 7,595 $ 10,476 \n \n7,356 \n \n8,829 \n \n$ 14,951 $ 19,305 \n \nlX \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nRevenues for all governmental funds totaled $181.1 million and expenditures totaled $171.6 million. Revenues were $9.5 million more than expenditures. The fund balance for governmental funds increased from $8.8 million at the beginning of the fiscal year to $19.3 million at June 30, 2008. \nThe fund balance reported for the General Fund increased from $1.5 million at the beginning of the fiscal year to $4.4 million at June 30, 2008. \nThe fund balance reported for the Capital Projects Fund and Debt Service Fund increased from $7.4 million at the beginning of the fiscal year to $15.0 million at June 30, 2008. Capital Projects activities slowed during fiscal year 2008. Projects that were funded by a previously approved special purpose local sales tax referendum were nearing completion in fiscal year 2008. Collections from a newly approved sales tax referendum began in October, 2008, and the School District began receiving those funds in December, 2008. However, major projects planned for those funds were delayed until fiscal year 2009 when the School District received additional start up proceeds from the issuance of a General Obligation Bond. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget to Actual Schedule 1.11 11 \nDuring fiscal year 2008, the School District amended its general fund budget as needed. The Original Budget approved by the School District's Board in June, 2007, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. This is because grant funds are restricted for a specific purpose which can only be used to fund additional programs. Also, Federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nSome of the budgeting challenges the School District faced in fiscal year 2008 included a $1.4 million reduction of the State educational formula allotment, and a State mandated 3 percent cost of living increase for teachers, bus drivers and child nutrition workers. The addition of a new elementary school resulted in additional school personnel, equipment, supplies and maintenance labor. High utilities and gasoline prices continued throughout the fiscal year. \nX \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nCapital Assets and Debt Administration \n \nCapital Assets \n \nSince fiscal year 2002, the School District developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \n \nIn fiscal year 2008, capital project activities consisted of the reflooring and installation of heating and cooling systems in all elementary gymnasiums. The renovation of an old school building and conversion to office space for the purpose of housing special education, gifted and other central support staff was also a major focus of capital projects during the year. \n \nIn December, 2008, the School District began receiving the proceeds from a newly approved Special Purpose Local Option Sales Tax referendum. The approved referendum provided for the renovation of three of the School District's high schools. Most of the work on these projects was delayed until fiscal year 2009 when the School District received additional start up proceeds from the issuance of a General Obligation Bond. However, fiscal year 2008 capital project activities included some preparation work on these renovation projects. \n \nAt the end of fiscal year 2008 the School District had invested $213.5 million in capital assets. Table 5 compares fiscal year 2007 Capital Asset balances to fiscal year 2008 balances. \n \nTable 5 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease/ \n \nYear 2008 Year 2007 Decrease \n \nLand Construction in Progress Buildings and Building Improvements Equipment \n \n$ 9,091 5,432 \n194,466 4,486 \n \n$ 9,057 21,047 179,683 4,198 \n \n$ \n \n34 \n \n-15,615 \n \n14,783 \n \n288 \n \nTotal \n \n$ 213A75 $ 213,985 $ -510 \n \nTable 5 shows that Capital Assets decreased $0.5 million in fiscal year 2008. The decrease in Construction in Progress is offset by an increase in Buildings and Building Improvements. This represents the completion of a construction project and the opening of a new elementary school. \n \nThe increase in equipment is primarily due to the lease-purchase of 12 new buses. All construction projects were funded by a 1 percent Special Purpose Local Option Sales Tax approved by the voters of Dougherty County. Bus replacement funds received from the State were used to pay the annual lease-purchase payments for the school buses. \n \nXl \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nDebt \n \nTable 6 summarizes the Long-Term Debt outstanding at June 30 for fiscal year 2007 and fiscal year 2008. \n \nTable 6 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease/ \n \nYear 2008 Year 2007 Decrease \n \nGeneral Obligation Bonds Compensated Absences Capital Leases \n \n$ 1,237 $ -1,237 \n \n$ 1,113 \n \n1,191 \n \n-78 \n \n916 \n \n308 \n \n608 \n \nTotal \n \n$ 2,029 $ 2,736 $==--70\"\"\"'7 \n \nAs shown in Table 6, the debt for General Obligation Bonds was completely eliminated by the end of the fiscal year. \n \nThe $1.1 million debt for Compensated Absences is the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nThe increase in Capital Leases is due to the lease-purchase of 12 new buses during the year. The $0.9 million in Capital Lease debt shown for fiscal year 2008 is the balance due to be paid for the buses in future years. \n \nCurrent Financial Issues \n \nLike most school systems in Georgia, the School District has faced several financial challenges in the recent years. Such challenges include rising costs in employee benefits, state mandated teacher salary increases, high cost of fuel, utilities and textbooks and the continued state formula allotment reductions. Other challenges include a slow decline in student enrollment (FTE) over the years and a stagnant local tax digest. \n \nFor several years prior to fiscal year 2004 (2003 tax digest) the School District's millage rate remained unchanged at a rate of 17.70 mills. In fiscal year 2003, the rate was rolled back to 17.55. When faced with mid-year state allotment reductions in both fiscal year 2003 and fiscal year 2004 the Board voted to increase the millage rate to 19 mills. However, the financial statements for the General Fund reported a negative fund balance for fiscal year 2005 and 2006. During this time, the School District also began implementing cost savings measures and spending reductions in all areas of support operations including Student Transportation, Maintenance, General Administration, School Food Service, Business Administration, and \n \nXll \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nCentral Support Services. As a result, the School District recovered from the negative fund balances by fiscal year 2007 and reported a positive $4.4 million fund balance by the end of fiscal year 2008. \n \nTwice, since increasing the millage rate to 19 mills in fiscal year 2004, the Board voted to roll the millage rate back, once in fiscal year 2007 (2006 digest) and again in fiscal year 2008 (2007 digest). The millage rate for fiscal year 2008 (2007 digest) was 18.445 mills. \n \nIn 2007, the Dougherty County Tax Department undertook a revaluation of the 2007 tax digest. This revaluation was comprehensive and resulted in a larger than average number of appeals and a lawsuit against the Dougherty County Tax Department. As of June 17, 2009, and after most of the appeals have been resolved, the 2008 Net M \u0026 0 digest (fiscal year 2009) remains virtually unchanged in value with 136 parcels representing an assessed value of $20.1 million still outstanding under various stages of appeal. The value of the outstanding parcels in appeal represents approximately 0.90 percent of the 2008 digest. \n \nOther items affecting the financial status of the School District is the slow decline in student enrollment (FTE) and the State's most recent announcements of additional reductions in state funding. \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The FTE count for fiscal year 2008 and the five years prior is as follows: \n \nFiscal Year 2004 Fiscal Year 2005 Fiscal Year 2006 Fiscal Year 2007 Fiscal Year 2008 \n \n16,362 16,522 16,731 16,376 16,208 \n \nIn August, 2008, the School District was notified of the decline in State revenues and the resulting additional reduction in educational funding for fiscal year 2009. In total, State funding for fiscal year 2009 was reduced $5.2 million. Expenditure reduction measures were taken in all areas with the purpose of preserving the fiscal year 2008 fund balance. Management has continued to monitor expenditures and identify additional costs savings and reductions on a monthly basis. \n \nIn March, of fiscal year 2007, the voters of Dougherty County approved the continuation of the I percent sales tax (Sales Tax for Educational Progress), and the issuance of general obligation bonds in the maximum principal amount of $40.0 million. These sales tax revenues will be used to complete the renovation of schools outlined by the long-range facilities plan. Other sales tax projects include the installation of safety and access controls at fifteen schools and various other facilities, and the purchase of musical instruments and other academic/instruction related equipment. In the fall of fiscal year 2009 the School District issued General Obligation Bonds in the amount of$18.0 million. \n \nXlll \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \n \nAt the end of fiscal year 2005, the Child Nutrition Program (food services operations) reported a deficit balance of $3.9 million. Operational cost controls implemented by program management, since that time, were successful in significantly reducing the deficit balance to $0.06 million by the end of fiscal year 2008. In October, 2009, the Child Nutrition Program began reporting a positive fund balance. \n \nThe Dougherty County School District recognizes its responsibilities as a steward of taxpayer dollars and State and Federal funds and strives to emphasize student achievement while maintaining sound fiscal management of those funds. \n \nContacting the School District's Financial Management \n \nThis management's discussion and analysis report is designed to provide our citizens, taxpayers, \n \ninvestors, and creditors with a general overview of the School District's finances, and to \n \ndocument the School District's accountability for the money it receives. If you have questions \n \nabout this report or need additional financial information, contact Robert Lloyd, Executive \n \nDirector of Business and Operations, at the Dougherty County School District, 200 Pine Avenue, \n \nAlbany, Georgia 31702. \n \nYou may also email your questions to \n \nrobert.11oyd@dougherty.kl2.ga.us. \n \nXIV \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \n \nEXHIBIT\"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \n \nPRIMARY GOVERNMENT GOVERNMENTAL \nACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ 18,903,440.54 $ 17,630,494.78 \n4,810,341.72 11,303,141.56 2,820,621.62 \n1,714.59 388,249.37 386,568.50 \n90,513.00 14,523,511.47 198,951,747.40 \n \n168,777.00 \n25,000.00 410,000.00 2,692,128.00 \n \nTotal Assets \n \n$ 269,810,344.55 $====3=,2=95='=90=5=.0=0 \n \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Contracts Payable Retainages Payable Deposits and Deferred Revenues Claims Incurred but not Reported (IBNR) Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Debt Service Capital Projects Unrestricted Governmental Activities Dougherty County Stadium Authority \nTotal Net Assets \n \n$ \n \n2,991,934.90 $ \n \n16,924,203.85 \n \n13,955.16 \n \n16,000,000.00 \n \n360,589.21 \n \n68,530.94 \n \n459,435.22 \n \n543,278.38 \n \n332,380.09 1,696,847.99 \n \n$ 39,391,155.74 $ \n \n$ 212,559,282.81 $ 89,223.72 \n773,846.46 14,177,272.06 2,819,563.76 \n$ 230,419,188.81 $ \n \n42,813.00 \n42 813.00 3,102,128.00 \n150 964.00 3,253,092.00 \n \nTotal Liabilities and Net Assets \n \n$ 269,810,344.55 $======3=,2=9=5'=9o=s=.o==o \n \nThe notes to the basic financial statements are an integral part of this statement. - 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Loss on Disposal of Building \nTotal General Revenues and Special Items \nChanges in Net Assets \nNet Assets - Beginning of Year (Restated) \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 107,709,786.48 $ \n4,540,529.43 5,867,425.92 3,301,286.83 1,880,073.65 9,413,074.02 2,016,539.59 13,345,634.20 5,771,844.01 3,122,890.57 1,107,694.14 \n535,860.20 570,184.92 8,337,983.56 \n$ 167,520,807.52 $ \n \n654,024.50 \n1,008,303.12 1,662,327.62 \n \n$ \n \n220,996.00 $ ---'1-\"-00=,-\"-00\"-'0-'-'.0=-0 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET(EXPENSES)REVENUES \n \nAND CHANGES IN NET ASSETS \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \n$ 73,573,873.57 \n1,756,508.22 3,496,558.38 2,186,038.90 2,702,930.55 4,603,186.33 \n56,181.24 5,362,652.73 2,273,021.33 $ \n29,572.69 581,049.12 \n620.00 8,661,852.70 \n$ 105,284,045.76 $ \n \n$ 282,053.00 282,053.00 $ \n \n-33,481,888.41 \n-2,784,021.21 -2,370,867 .54 -1,115,247.93 \n822,856.90 -4,809,887 .69 -1,960,358.35 -7,982,981.47 -3,216,769.68 -3,093,317.88 \n-526,645.02 \n-535,860.20 -569,564.92 1,332,172.26 \n-60,292,381.14 \n \n$ _ _ _ _-_1_20~9_9_6_.o_o \n \n$ \n \n40,107,773.00 \n \n39,258.56 \n \n18,656,880.16 434,923.66 \n10,556,901.00 724,451.31 $ \n3,084,059.64 \n \n-2,891,845.13 \n \n$ \n \n70,712,402.20 $ \n \n$ \n \n10,420,021.06 $ \n \n219,999,167.75 \n \n7,935.00 2,933.00 \n10 868.00 -110, 128.00 3,363,220.00 \n \n$ \n \n230,419,188.81 $ =======3=,2=53=,0=9=2=.0=0 \n \n-3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2008 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local lnterfund Other Inventories Prepaid Items \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 18,161,035.29 $ 740,850.91 $ 5,050,567.11 11,807,635.55 \n \n1,880,811.82 11,303,141.56 \n2,820,621.62 1,714.59 \n388,249.37 386,568.50 \n90,513.00 \n \n3,261,082.35 139,041.41 \n \n1,554.34 $ 18,903,440.54 772,292.12 17,630,494.78 \n5,141,894.17 11,303,141.56 \n2,820,621.62 1,714.59 \n139,041.41 388,249.37 386,568.50 \n90,513.00 \n \nTotal Assets \n \n$ 40,083,222.86 $ 15,948,610.22 $ 773,846.46 $ 56,805,679.54 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Accounts Payable - lnterfund Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Debt Service Capital Projects \nUnreserved Designated for Self-Insurance Undesignated Reported in: General Fund \nTotal Fund Balances \n \n$ 2,192,995.27 $ 139,041.41 \n16,924,203.85 13,955.16 \n16,000,000.00 \n459,435.22 \n \n1,342,218.01 \n360,589.21 68,530.94 \n \n$ 35,729,630.91 $ 1,771,338.16 \n \n$ 3,535,213.28 139,041.41 \n16,924,203.85 13,955.16 \n16,000,000.00 360,589.21 68,530.94 459,435.22 \n$ 37,500,969.07 \n \n$ \n \n89,223.72 \n \n$ \n \n$ 14,177,272.06 \n \n635,699.25 \n \n3,628,668.98 \n \n$ 4,353,591.95 $ 14,177,272.06 $ \n \n$ \n \n89,223.72 \n \n773,846.46 \n \n773,846.46 \n \n14,177,272.06 \n \n635,699.25 \n \n3,628,668.98 \n \n773,846.46 $ 19,304,710.47 \n \nTotal Liabilities and Fund Balances \n \n$ 40,083,222.86 $ 15,948,610.22 $ 773,846.46 $ 56,805,679.54 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE30, 2008 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, 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: \nCapital Leases Payable Compensated Absences \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 19,304,710.47 \n \n$ 9,091,354.08 5,432,157.39 \n279,110,374.38 15,282,755.53 -95,441,382.51 \n \n213,475,258.87 \n \n-331,552.45 \n \n$ \n \n-915,976.04 \n \n-1, 113,252.04 \n \n-2,029,228.08 \n \n$ 230,419,188.81 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning (Restated) \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 40,399,328.98 \n \n$ \n \n434,923.66 $ 18,656,880.16 \n \n92,401,392.29 \n \n23,721,607.48 \n \n1,662,327.62 \n \n359,875.84 \n \n364,575.47 \n \n3,084,059.64 \n \n$ 162,063,515.51 $ 19,021,455.63 $ \n \n0.00 $ \n \n40,399,328.98 19,091,803.82 92,401,392.29 23,721,607.48 \n1,662,327.62 724,451.31 \n3,084,059.64 \n \n0.00 $ 181,084,971.14 \n \n$ 100,800,099.03 $ 2,993,508.62 \n \n$ 103,793,607.65 \n \n4,529,362.78 5,451,316.98 3,080,575.27 1,848,063.86 9,203,685.66 1,937,010.87 12,797,194.30 6,544,664.25 3,094,523.40 1,107,694.14 \n503,875.50 570,184.92 8,180,127.26 \n \n22,053.29 339,977.13 \n7,095,694.35 \n \n4,529,362.78 5,451,316.98 3,080,575.27 1,848,063.86 9,203,685.66 1,959,064.16 13,137,171.43 6,544,664.25 3,094,523.40 1,107,694.14 \n503,875.50 570,184.92 8,180,127.26 7,095,694.35 \n \n372,731.12 4 009.91 \n \n$ 1,090,000.00 24,525.00 \n \n1,462,731.12 28,534.91 \n \n$ 160,025,119.25 $ 10,451,233.39 $ 1,114,525.00 $ 171,590,877.64 \n \n$ 2,038,396.26 $ 8,570,222.24 $ -1, 114,525.00 $ 9,494,093.50 \n \n$ \n \n980,970.00 \n \n$ 139,041.41 \n \n-139 041.41 \n \n$ \n \n980,970.00 \n \n139,041.41 \n \n-139 041.41 \n \n$ \n \n841,928.59 $ 139 041.41 \n \n$ \n \n980,970.00 \n \n$ 2,880,324.85 $ 8,709,263.65 $ -1,114,525.00 $ 10,475,063.50 \n \n1,473,267.10 5,468,008.41 1,888,371.46 \n \n8,829,646.97 \n \n$ 4,353,591.95 $ 14,177,272.06 $ 773,846.46 $ 19,304,710.47 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the loss on the sale/disposal of the building/equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the building/equipment sold/disposed. \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nAmortized Bond Premium Bond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nDecrease in Compensated Absences \n \n$ 10,475,063.50 \n \n$ 6,997,318.32 -4,558, 117.97 \n \n2,439,200.35 \n \n-252,297.42 \n \n-2,948,632.41 \n \n-980,970.00 \n \n$ 147,190.00 1,090,000.00 372,731.12 \n \n1,609,921.12 \n \n77,735.92 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 10,420,021.06 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nFederal Local Other \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS \n$ 85,085.57 11,476.87 42,812.96 30,507.96 \n$ 169,883.36 \n$ 169,883.36 \n \nThe notes to the basic financial statements are an integral part of this statement. -8 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 19 for additional component unit disclosures. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dougherty County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n \n-9 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nRESTATEMENT OF PRIOR YEAR NET ASSETS/FUND BALANCE \nFor fiscal year 2008, the School District restated its beginning fund balance for the Capital Projects fund and the beginning net assets for District-wide governmental activities. At June 30, 2007, the School District booked a $528,050.60 accounts receivable and revenue from GSFIC for reimbursement of Capital Projects expenditures. Subsequently, the funds were never collected from GSFIC, and are not longer available. The result is a decrease in Capital Projects accounts receivable and beginning fund balance, as well as, a decrease in District-wide Governmental Activities accounts receivable and beginning net assets. This prior period adjustment was done to correct the accounts receivable. This change is in accordance with generally accepted accounting principles. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \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. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe Dougherty County Board ofCommissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on October 24, 2007 (levy date). Taxes were due on January 20, 2008 (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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1 % of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $40,399,328.98. \n \nThe tax millage rate levied for the 2007 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.450 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $18,656,880.16 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCONSUMABLE SUPPLIES On the basic financial statements, consumable supplies are reported at cost (first in, first out). The School District uses the consumption method to account for consumable supplies inventory whereby as asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2008, are recorded as prepaid items. \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Buildings and Improvements Equipment \n \nAny Amount $ 5,000.00 $ 5,000.00 \n \nNIA 20 to 80 years 4 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nCOMPENSATED ABSENCES \n \nMembers ofthe Teachers Retirement System ofGeorgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \n \nA maximum of 18 days of vacation leave is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 30 days. \n \nChanges in the compensated absences liability for the last three fiscal years are as follows: \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nBeginning of Year Liability \n \nAnnual Leave Annual Leave End of Year \n \nEarned \n \nUtilized \n \nLiability \n \n2006 2007 2008 \n \n$ 1,263,431.00 $ 1,026,675.00 $ 1,142,136.00 $ 1,147,970.00 $ 1,147,970.15 $ 1,033,577.72 $ 990,559.91 $ 1,190,987.96 $ 1,190,987.96 $ 1,029,076.29 $ 1,106,812.22 $ 1,113,252.03 \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement ofNet Assets. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \n \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nDEFICIT FUND BALANCES \n \nThe fund reporting a deficit fund balance at June 30, 2008, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Fund Type School Food Service Fund \n \n$ 59,664.11 \n \nOperational cost controls initiated by management in fiscal year 2005 and continued through fiscal years 2006, 2007 and 2008 were successful in fully eliminating the Child Nutrition Program deficit by October 2008. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. At June 30, 2008, $8,425.63 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $24,811,966.45. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nPRIMARY GOVERNMENT \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n8,425.63 \n \n2 \n \n0.00 \n \n3 \n \n24,296.017 .24 \n \nTotal \n \n$ 24,304,442.87 \n \nCOMPONENT UNIT \n \nAt June 30, 2008, Dougherty County Stadium Authority's bank balances of $168,777.00 were classified by custodial credit risk category as follows: \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n11,726.00 \n \nTotal \n \n$ 11,726.00 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2008, the carrying value ofthe School District's total investments was $17,630,494.78, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office ofTreasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State ofGeorgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html. \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nPRIMARY GOVERNMENT \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Buildings and Improvements Equipment \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances Jul}'. 1, 2007 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2008 \n \n$ 9,057,267.66 $ 34,086.42 \n \n$ 9,091,354.08 \n \n21,046,659.31 2,881,577.81 $18,496,079.73 5,432,157.39 \n \n$ 30,103,926.97 $ 2,915,664.23 $ 18,496,079.73 $ 14,523,511.47 \n \n$263,661,231.31 $21,380,227.22 $ 5,931,084.15 $279,110,374.38 15,414,509.44 1,197,506.60 1,329,260.51 15,282,755.53 \n \n83,978,383.46 11,216,593.33 \n \n3,667,363.69 890,754.28 \n \n3,000,966.85 84,644,780.30 1,310,745.40 10,796,602.21 \n \n$183,880,763.96 $18,019,615.85 $ 2,948,632.41 $198,951,747.40 \n \n$213,284,620.23 $ 2Q,235,28Q,Q8 $21,444,112.14 $213,475,258.81 \n \nCapital assets being acquired under capital leases as of June 30, 2008, are as follows: \n \nEquipment Less: Accumulated Depreciation \n \nGovernmental Funds \n$ 1,010,638.00 2,708.50 \n \n$ 1,007,929.50 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Enterprise Operations Food Services \n \n$ 2,958,901.89 \n \n$ \n \n5,600.82 \n \n189,278.18 \n \n147,469.10 \n \n150,457.37 \n \n81,729.09 \n \n102,534.14 \n \n491,953.98 \n \n33,312.58 \n \n1,202,335.26 18,904.37 \n377,976.45 \n \n$ 4,558.117 .97 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nCOMPONENT UNIT \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand \nCapital Assets Being Depreciated Buildings Equipment Stadium Improvements \nLess Accumulated Depreciation for: Buildings Equipment Stadium Improvements \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances July 1, 2007 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2008 \n \n$ 410,000.00 $ \n \n0.00 $ \n \n$ 308,976.00 \n \n$ \n \n239,886.00 \n \n2,586,683.00 \n \n27,035.00 $ 86,549.00 229,370.00 \n \n7,724.00 26,235.00 66,504.00 \n \n$ 2,792,591.00 $ -100,463.00 $ \n \n$ 3.202.591.00 $ -100.463.00 $ \n \n0.00 $ 410,000.00 \n0.00 $ 308,976.00 239,886.00 \n2,586,683.00 \n34,759.00 112,784.00 295 874.00 \n0.00 $ 2,692,128.00 0.00 $ 3.102.128.00 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ 865,619.70 $ \n \n$ \n14,272.62 \n \n1,554.34 \n \n$ 772,292.12 $ 11,132,634.71 $ 675,000.84 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2008, consisted of the following: \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund District-wide Capital Projects \n \n$ 139,041.41 $ 139,041.41 \n \n$ 1392041.41 $ 1392041.41 \n \nTransfers are used to move property tax revenues collected by the General Fund to cover a portion of employee's salaries not funded as a part of the Special Purpose Local Option Sales Tax (SPLOST) projects. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2008, consisted of the following: \n \nTransfer to \n \nTransfers From General Fund \n \nDistrict-wide Capital Projects \n \n$ 1392041.41 \n \nTransfers are used to move property tax revenues collected by the General Fund to cover a portion of employee's salaries not funded as a part of the Special Purpose Local Option Sales Tax (SPLOST) projects. \n \nNote 9: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 9: RISK MANAGEMENT \n \nthe system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2007 2008 \n \n$ 282,293.00 $ 1,156,102.32 $ 843,106.88 $ 595,288.44 $ 595,288.44 $ 1,290,462.11 $ 1,342,472.17 $ 543,278.38 \n \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2007 2008 \n \n$ \n \n0.00 $ 28,470.00 $ 28,470.00 $ \n \n0.00 \n \n$ \n \n0.00 $ 16,110.00 $ 16,110.00 $ \n \n0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 9: RISK MANAGEMENT \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ 50,000.00 $ 250,000.00 \n \nNote 10: OPERATING LEASES \n \nDougherty County Board of Education has entered into various leases as lessee for copiers, fax machines and a mailing machine. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2008, for governmental funds amounted to $358,114.73. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2009 2010 2011 2012 2013 \n \n$ 357,723.84 357,723.84 5,627.00 2,730.00 1,450.00 \n \nTotal \n \n$ 725,254.68 \n \nNote 11: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-term debtto 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$==o=.o=o $30.000,000.00 $14,000,000.00 $16.000.000.00 \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 12: LONG-TERM DEBT \n \nCAPITAL LEASES The Dougherty County Board of Education entered into various lease agreements for buses. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. \n \nCOMPENSATED ABSENCES Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nGENERAL OBLIGATION DEBT OUTSTANDING Voters have authorized $40,000,000.00 in general obligation debt for the purpose of funding (1) the school renovations and improvements, land acquisition for future expansion, certain capital repairs and modifications, (2) additional classroom technology, system-wide replacement of computers, upgrading of technology, (3) additional safety and security equipment, (4) vehicle and equipment replacement and (5) related financing, project management and elections costs, which was not issued as of June 30, 2008. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \n \nBalance July 1, 2007 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30, 2008 \n \nDue Within One Year \n \nG.O. Bonds Capital Leases Compensated Absences Bond Premiums Amortized \n \n$1,090,000.00 307,737.16 \n1,190,987.96 147 190.00 \n \n$ 980,970.00 1,029,076.29 \n \n$ 1,090,000.00 372,731.12 \n1,106,812.21 147 190.00 \n \n$ \n \n0.00 \n \n915,976.04 \n \nI, 113,252.04 \n \n0.00 \n \n$ 233,791.55 98,588.54 \n \n$2,735,915, 12 $ 2,Q10,Q46.29 $ 2,716,733.33 $ 2,Q29,228,Q8 $ 332 38Q,Q2 \n \nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2009 2010 2011 2012 \n \n$ 233,791.55 $ 241,264.98 248,977.31 191,942.20 \n \n26,184.29 18,710.86 10,998.53 3,039.68 \n \nTotal Principal and Interest \n \n$ 915,976.04 $==58-,9==3==3==3.==6 \n \n- 24- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 13: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $3,479,638.77 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $3,392,057.11 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $66,722.66 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $20,859.00 \n \nNote 14: SPECIAL ITEMS \n \nIn fiscal year 2008, the Dougherty County Board of Education demolished the Radium Springs Middle School. The loss associated with demolition is reported as a Special Item on the Statement of Activities. \n \nNote 15: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008: \n \nProject \n \nUnearned Executed Contracts \n \nSecurity and Access Control System, Phase II Elementary School Gymnasiums Monroe High School Reroofing \n \n$ 974,517.92 209,110.00 751,500.19 \n \n$ 1,935,128.11 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 16: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 17: POSTEMPLOYMENT BENEFITS \n \nGeorgia Retiree Health Benefit Fund \n \nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code 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. \n \nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \n \nTeachers Non-Certificated Employees \n \n18.534% of state-based salaries $162.72 per month \n \nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $12,896,504.27, which equaled the required contribution. \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 18: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 7,962,738.90 $ 7,725,403.24 $ 7,389,992.00 \n \nNote 19: COMPONENT UNIT \n \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit ofthe School District and is discretely presented in the School District's financial statements. \n \nThe Authority utilizes the modified accrual method ofaccounting. The Authority has implemented the financial reporting requirements ofGASB Statement Nos. 33 and 34. The Authority's fiscal year is July 1 through June 30. \n \n- 27 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 40,904,416.00 $ 41,248,771.38 $ 40,399,328.98 \n \n434,923.66 \n \n88,069,916.00 \n \n91,594,109.48 \n \n92,401,392.29 \n \n22,727,122.90 \n \n27,792,225.48 \n \n23,721,607.48 \n \n2,346,596.63 \n \n2,534,620.06 \n \n1,662,327.62 \n \n410,000.00 \n \n410,000.00 \n \n359,875.84 \n \n1,308,375.76 \n \n2,236,989.06 \n \n3,084,059.64 \n \n$ 155,766,427.29 $ 165,816,715.46 $ 162,063,515.51 \n \n$ 96,949,857.46 $ 102,654,469.31 $ 100,800,099.03 \n \n4,868,714.50 4,744,008.06 3,350,478.19 2,033,892.99 8,756,507.95 1,951,804.92 13,292,009.89 5,222,843.57 2,733,910.98 1,143,951.00 10,161,349.78 \n448,481.00 597,962.00 \n \n4,822,441.34 7,218,323.33 3,464,252.41 2,117,814.75 9,216,073.82 1,988,033.98 13,277,911.95 5,827,652.42 3,448,927.39 1,475,314.88 10,865,191.55 \n463,161.15 622,693.31 \n \n4,529,362.78 5,451,316.98 3,080,575.27 1,848,063.86 9,203,685.66 1,937,010.87 12,797,194.30 6,544,664.25 3,094,523.40 1,107,694.14 8,180,127.26 \n503,875.50 570,184.92 376 741.03 \n \n$ 156,255,772.29 $ 167,462,261.59 $ 160,025,119.25 \n \n$ \n \n-489,345.00 $ -1 645 546.13 $ 2,038,396.26 \n \n$ 1,666,550.00 $ 2,328,541.83 $ \n \n-640 000.00 \n \n-682 995.70 \n \n980,970.00 -139 041.41 \n \n$ 1,026,550.00 $ 1645546.13 $ \n \n841 928.59 \n \n$ \n \n537,205.00 $ \n \n0.00 $ 2,880,324.85 \n \n1,072,146.32 \n \n1,072,146.32 \n \n1473267.10 \n \nFund Balances - Ending \n \n$ \n \n1,609,351.32 $ \n \n1,072,146.32 $ ====4.,.3=5=3=5=91==95= \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \n \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U.S. Department of Agriculture \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Direct State Grants for Innovative Programs Impact Aid Transition to Teaching Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants Mathematics and Science Partnerships Migrant Education Reading First State Grants Safe and Drug-Free Schools and Communities - State Grants Special Education State Personnel Development State Grants for Innovative Programs Title I Grants to Local Educational Agencies \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Workforce Investment Act Youth Activities \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nN/A \n \n(2) \n \nN/A $ 7,512,050.75 \n \n$ 7,512,050.75 \n \n10.550 \n \nN/A \n \n488,775.27 \n \n$ 8,000,826.02 \n \n94.004 \n \nN/A $ \n \n20,000.00 \n \n. 84.027 . 84.173 \n \nN/A $ 3,895,238.45 \n \nN/A \n \n136,731.00 \n \n$ 4,031,969.45 \n \n84.298 84.041 84.350 \n84.048 84.365 \n. 84.318 84.367 84.366 \n. 84.011 84.357 84.186 \n84.323 84.298 84.010 \n \n277,960.39 (3) 4,325.00 \n \nN/A \n \n262,210.00 \n \nN/A \n \n5,609.12 \n \nN/A \n \n119,426.59 \n \nN/A \n \n1,553,664.39 \n \nN/A \n \n109,111.00 \n \nN/A \n \n27,761.43 \n \nN/A \n \n1,409,782.33 \n \nN/A \n \n113,850.00 \n \nNIA \n \n26,987.70 \n \nN/A \n \n35,850.99 \n \nN/A \n \n7,078,295.79 \n \n$ 15,056,804.18 \n \n93.959 \n \nN/A $ \n \n30,032.18 \n \n17.259 \n \nN/A $ \n \n57 919.60 \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marine Corps R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n$ \n \n71,922.64 \n \n105,356.39 \n \n$ \n \n177,279.03 \n \nTotal Federal Financial Assistance \n \n$ 23,342,861.01 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,650,112.45) were not maintained separately and are included in the 2008 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $167,329.79, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \n \nAGENCY/FUNDING \n \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \n \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Charter Schools Communities in Schools - Dropout Recovery and Prevention Graduation Coaches Health Insurance National Teacher Certification Preschool Handicapped Program Remedial Summer Middle School Severely Emotionally Disturbed Teachers' Retirement Virtual Schools Grant \n \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \n- 32 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,084,284.83 \n \n5,794,340.00 283,860.00 \n13,908,463.00 993,660.00 \n6,636,381.00 621,418.00 \n1,832,964.00 8,630,180.00 7,995,008.00 2,397,580.00 \n216,910.00 2,039,730.00 3,842,602.00 \n657,009.00 657,647.00 1,324,878.00 458,979.00 778,306.00 \n76,517.00 1,826,533.00 \n560,009.00 270,082.00 \n1,718,561.00 3,657,432.00 4,187,213.00 \n1,732,113.00 282,053.00 281,705.00 34,654.00 329,309.00 \n10,556,901.00 449,610.00 107,346.81 \n-1,388, 155.00 \n10,000.00 26,412.00 427,260.00 3,392,057.11 34,995.00 457,374.00 18,727.00 2,659,534.00 66,722.66 \n825.00 \n20,859.00 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \nAGENCY/FUNDING CONTRACT Human Resources, Georgia Department of Year Round and Summer Learning \n \nSCHEDULE \"3\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n$ =====92='=40=1=,3=9=2.=2=9 \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS(2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nThe acquisition, construction, and equipping of six new elementary physical education facilities, two new middle schools, supply services freezer, completion of expansion program at five schools, roof replacement on 24 buildings, technology power upgrade on 30 buildings, ceilings and lights in 27 buildings, HVAC upgrades on 24 buildings, four new high school field houses, three support facilities for new elementary schools, renovation of McIntosh Teacher Academy, renovation of five schools, Highland conversion, underslab plumbing replacement in 17 buildings, asbestos removal at 48 sites, lawn revitalization at 30 sites, facilities department shops, tower, media service center, security lighting at 28 sites, sports field lighting at four sites and 41 new vehicles, including the acquisition of all necessary property, the maximum cost of such projects not to exceed $88,653,060.00. \n \n$ 88,653,060.00 $ 113,707,711.69 \n \n$ 113,707,711.69 Completed \n \nThe acquisition, construction and equipping of three elementary schools, renovation and improvements of one middle school, renovation and improvements of four high schools, renovation and improvements of five elementary schools, provision of gifted, special education, and alternative education sites, capital funding necessary for compliance with Individuals with Disabilities Education Act (IDEA) for children with disabilities, renovation of existing school buildings, four Pre-K facilities in each of four quadrants in the Dougherty County School System, additional technology (hardware and software), including teacher and student classroom computers, peripheral devices and wiring, mobile wireless computer labs, accessory support technology, wireless connectivity for portable classrooms and technology associates with distance and foreign language labs, safety equipment including, but not limited to, upgrading locks on all school buildings, installation of cameras and other devices on schools and school buses, and security/attendance card system, upgrade of school vehicles and maintenance equipment, funding certain financing and project management cost for implementation of capital programs funded through SPLOST 11, the maximum cost of such projects not to exceed $95,000,000.00. \n \n95,000,000.00 \n \n91,512,154.40 $ 2,378,393.03 \n \n89,133,761.70 Ongoing \n \n-34 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR(3} (4) \n \nThe renovation and improvement of four high \n \nschools and five elementary schools, strategic \n \nland acquisition for future school expansion, certain \n \nother capital repairs and modifications in system- \n \nwide schools, buildings and offices (including \n \ncarpet replacement, gym flooring and certain \n \nother capital repairs and modifications), (ii) the \n \nprovision of additional classroom technology \n \n(including hardware, software and computer \n \nfurniture), regular system-wide replacement of \n \ncomputers five years or older, installing six \n \ncomputers in all K-8th grade classrooms and three \n \ncomputers in all 9th - 12th grade classrooms, \n \nproviding system-wide teacher laptop computers, \n \nsystem-wide \"wireless-connectivity\" in all classroom \n \nand other buildings, upgrading existing computer- \n \naided instructional systems to \"Model Classroom\" \n \nstandards and providing three additional \"Model \n \nClassrooms\" per school, providing system-wide \n \nupgraded or new servers and upgraded main data \n \nframe (MDF) rooms, installing \"voice-over-internet- \n \nprotocol\" (VoIP) in various classrooms throughout \n \nthe school system, (iii) the provision of safety and \n \nsecurity equipment, including system-wide \n \ncommunication equipment and card-access \n \nsystems at various system-wide buildings and the \n \ninstallation of radio signal-boosters (\"radio \n \nrepeaters\") for West Dougherty Tower, (iv) vehicle \n \nand equipment replacement, including school \n \nbuses and departmental trucks, vans and sedans \n \nfor system-wide use, major maintenance, supply \n \nand service equipment, musical instruments, \n \nplayground equipment and other educational \n \nrelated equipment, and (v) funding certain financing, \n \nproject management and election costs related \n \nthereto, the maximum cost of such projects not \n \nto exceed $95,000,000.00. \n \n$ \n \n95,000,000.00 $ \n \n95,000,000.00 $ \n \n7,933,798.95 \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nOngoing \n \n$ 278,653,060.00 $ 300,219,866.09 $ 10,312,191.98 $ 202,841,473.39 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 6,200,246.00 \n \nCurrent Year \n \n24 525.00 \n \nTotal \n \n$ 6,224,771.00 \n \nSee notes to the basic financial statements. \n \n- 35 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n6,662,281.00 $ 334,815.00 \n15,856,846.00 1,136,758.00 7,545,485.00 \n \n7,289,398.77 $ 244,867.77 \n16,076,741.83 974,249.25 \n8,745,230.27 \n \n164,660.96 \n313,187.61 14,749.61 \n586,514.53 \n \n704,040.00 2,064,358.00 9,903,222.00 9,185,339.00 2,676,124.00 8,520,457.00 \n1,522,140.00 495,872.00 889,637.00 82 861.00 \n \n615,778.21 2,276,692.84 12,077,743.42 12,658,974.80 2,487,596.95 \n285,632.14 3,639,300.07 5,195,727.28 \n359,054.09 985,551.75 \n1,030,022.41 116,720.15 \n \n78,420.26 445,203.45 690,931.53 217,702.25 \n5,631.57 7,101.89 47,319.03 26,323.52 20,858.49 \n161,761.96 241.56 \n \n7,454,059.73 244,867.77 \n16,389,929.44 988,998.86 \n9,331,744.80 \n615,778.21 2,355,113.10 12,522,946.87 13,349,906.33 2,705,299.20 \n291,263.71 3,646,401.96 5,243,046.31 \n385,377.61 1,006,410.24 \n1,191,784.37 116961.71 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n67,580,235.00 $ 75,059,282.00 $ 2,780,608.22 $ 77,839,890.22 \n \nMedia Center Program Staff and Professional Development \n \n2,042,028.00 355,049.00 \n \n2,569,865.15 \n \n306,194.88 266,700.56 \n \n2,876,060.03 266,700.56 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n69,977,312.00 $ 77,629,147.15 $ 3,353,503.66 $ 80,982,650.81 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 37 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 1, 2009 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Dougherty County Board ofEducation as of and for the year ended June 30, 2008, which collectively comprise Dougherty County Board of Education's basic financial statements and have issued our report thereon dated October 1, 2009. Our report was modified to include a reference to other auditors. 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. Other auditors audited the financial statements ofthe Dougherty County Board of Education's discretely presented component unit, as described in our report on the Dougherty County Board of Education's financial statements. This report does not include the results of other auditor's testing of internal controls over financial reporting or compliance and other matters that are reported on separately by those auditors. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dougherty County 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 of expressing an opinion on the effectiveness ofthe Dougherty County Board ofEducation's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dougherty County Board of Education's internal control over financial reporting. \n2008YB-30X \n \n Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \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 affects the Dougherty County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe Dougherty County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Dougherty County Board of Education's internal control. We consider item FS-6471-08-01 in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Dougherty County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that the significant deficiency described above is not a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our and other auditor's tests disclosed no instances ofnoncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Dougherty County Board of Education in a separate letter dated October 1, 2009. \nDougherty County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Dougherty County Board of Education's response and, accordingly, we express no opinion on it. \n2008YB-30X \n \n This report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~W~ \nRu sell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008YB-30X \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 1, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2008. Dougherty County Board of Education's major Federal programs are identified in the Summary of Auditor'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 ofDougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dougherty County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2008SA-40 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dougherty County Board ofEducation's compliance with those requirements. \nIn our opinion, the Dougherty County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2008. The results of our auditing procedures disclosed instances of noncompliance with those requirements, which are described in the accompanying Schedule of Findings and Questioned Costs as items FA-6471-08-01 and FA-6471-08-02. \nInternal Control Over Compliance \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe Dougherty County Board of Education's internal control over compliance. \nOur consideration ofthe internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies. \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. We consider the deficiencies in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6471-08-01 and FA-6471-08-02 to be significant deficiencies. \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. We do not consider any ofthe deficiencies described in the accompanying Schedule ofFindings and Questioned Costs to be material weaknesses. \n2008SA-40 \n \n Dougherty County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Dougherty County Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use ofmanagement, members ofthe Dougherty County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2008SA-40 \n \nv)~~ \nell W. Hinton, CPA, CGFM State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-64 71-06-02 FS-6471-07-01 \n \nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-07-01 \n \nThe number of staff available for assignment of accounting functions is limited in the schools. The School District's internal auditor will continue to work with the available staff in each school to develop compensating controls. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-06-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nACTIVITIES ALLOWED OR UNALLOWED Inadequate Internal Control Procedures U. S. Department of Education Through Georgia Department of Education Amount: $22,396.00 Finding Control Number: FA-6471-06-01 \n \nThe School District expended more than $1 million in local funds for students with disabilities. Any of these expenditures could have been earmarked for the $22,396.00 Hurricane Education Recovery Act funds. The School District will provide this information to Georgia Department of Education upon their request. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Dougherty County Board of Education disclosed a financial statement significant deficiency related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nThe significant deficiency described above is not considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Dougherty County Board of Education disclosed significant deficiencies in internal control over major programs for the following compliance requirements. \n \nPeriod of Availability of Federal Funds Allowable Costs/Cost Principles \n \nNone of the significant deficiencies described above are considered to be material weaknesses. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Dougherty County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n7. Major Programs Federal awards audited as major programs are as follows: 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants 84.357 Reading First State Grants 84.367 Improving Teacher Quality State Grants \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $705,305.72. \n \n9. Low Risk Auditee The Dougherty County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6471-08-01 \n \nCondition: \n \nThis is a repeat finding ((FS-6471-07-01, FS-6471-06-02, FS-6471-05-02, FS-6471-04-02, FS-6471-03-02, and FS-6471-02-02) from the years ended June 30, 2007, June 30, 2006, June 30, 2005, June 30, 2004, June 30, 2003, and June 30, 2002, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n \n-2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6471-08-01 \n \nRevenues and Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during our testing of transactions: 1. A few receipts were not deposited timely. 2. Numerous receipts did not have enough information to trace to recording on general ledger. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  The following deficiencies were noted during our testing of transactions: 1. A voucher lacked proof of receiving function. 2. Numerous expenditures did not have enough information to trace to general ledger. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \n \nEffect: \n \nErrors and /or fraud may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. Additionally, management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Reading First State Grants (CFDA 84.357) Finding Control Number: FA-6471-08-01 \n \nCondition: \n \nA review of salaries charged to the Reading First State Grants (CFDA 84.357) revealed that employee time and attendance records were not being utilized as required by 0MB Circular A-87. \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"Where employees work on multiple activities or cost objectives, a distribution oftheir salaries or wages will be supported by personnel activity reports or equivalent documentation that meets the following standards: \n(a) They must reflect an after-the-fact distribution ofthe actual activity of each employee, \n(b) they must account for the total activity for which the employee is compensated, \n(c) they must be prepared at least monthly and must coincide with one or more pay periods, and \n(d) they must be signed by the employee. \n \nSuch documentary support will be required where employees work on: (a) More than one Federal award, or (b) a Federal award and a non-Federal award.\" \n \nQuestioned Cost: $27,390.48 \n \nInformation: \n \nTesting of employee compensation payments charged to the Reading First State Grants program revealed that personnel activity reports or equivalent documentation had not been completed for an employee who worked on multiple activities to document the actual time worked in the program. In addition, an employee funded completely with Federal funds was missing a periodic certification for the period. \n \nCause: \n \nManagement failed to implement controls for monitoring compliance with Federal guidelines to ensure that proper documentation was maintained related to employee compensation expenses paid from Federal award programs. \n-4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Reading First State Grants (CFDA 84.357) Finding Control Number: FA-6471-08-01 \n \nEffect: \n \nFailure to require timesheets and/or time schedules for split-funded employees resulted in noncompliance with the requirements of the Federal grant. \n \nRecommendation: \n \nThe School District should establish procedures to ensure that adequate time records that support the basis for compensation are maintained for all split funded employees. The Georgia Department ofEducation should review this matter to determine if a refund is appropriate. \n \nPERIOD OF AVAILABILITY OF FEDERAL FUNDS Expenditures Outside of Grant Period Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education Through Georgia Department of Education Improving Teacher Quality State Grants (CFDA 84.367) Reading First State Grants (CFDA 84.357) Finding Control Number: FA-6471-08-02 \n \nCondition: \n \nAn examination of transactions for the Reading First State Grants (CFDA 84.357) and the Improving Teacher Quality State Grants (CFDA 84.367) revealed that expenditures occurring outside the grant period were charged to these programs. \n \nCriteria: \n \nThe Uniform Administrative Requirements for Grants and Cooperative Agreements to State andLocal Governments states, in part, \"where a funding period is specified, a grantee may charge to the award only costs resulting from obligations of the funding period\". \n \nQuestioned Cost: \n \n$38,536.67 Improving Teacher Quality State Grants (CFDA 84.367) $11,666.67 Reading First State Grants (CFDA 84.357) $26,870.00 \n \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nPERIOD OF AVAILABILITY OF FEDERAL FUNDS Expenditures Outside of Grant Period Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Improving Teacher Quality State Grants (CFDA 84.367) Reading First State Grants (CFDA 84.357) Finding Control Number: FA-6471-08-02 \n \nInformation: \n \nA review ofexpenditures revealed that two vendor invoices charged to these programs were for software licensing agreement costs incurred subsequent to the end of the grant period. \n \nCause: \n \nManagement failed to adequately monitor the compliance with Federal guidelines to ensure that expenditures were charged during the approved grant period. \n \nEffect: \n \nFailure to ensure that expenditures were charged in the correct grant period resulted in noncompliance with the requirements of the Federal Grant. \n \nRecommendation: \n \nThe School District should implement adequate procedures to ensure that expenditures are charged to the appropriate grant period. The Georgia Department ofEducation should review this matter to determine ifa reclaim of funds is appropriate. \n \n-6 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2008 \n \nFinding Control Number: FS-6471-08-01 \n \nWe concur with this finding. However, financial resources limit the number of staff available for assignment of accounting functions in the schools. The School District's internal auditor will continue to work with the available staff in each school to further develop compensating controls where needed. \n \nFinding Control Number: FA-6471-08-01 \n \nWe concur with this finding. All Federal Program Directors will be notified of the time and attendance and periodic certification requirement by Central Office Administration staff. All Federal Program Directors will require this information on a monthly basis for split-funded employees and twice a year for employees that are funded completely with Federal funds. The Internal Auditor will monitor the required documentation twice a year (October and February) to ensure that the documentation is being maintained. These monitoring procedures will be implemented by October, 2009. \n \nFinding Control Number: FA-6471-08-02 \n \nWe concur with this finding. Accounting, Accounts Payable and Purchasing Department staff will continue to monitor these requirements in their respective functions. Principals, Department Heads and Program Directors are constantly informed of these requirements during the school year in an effort to prevent improper expenditures. \n \nContact Person: Telephone: Fax: Email: \n \nRobert Lloyd, Finance Director (229) 431-1234 (229) 431-1239 Robert.lloyd@docoschools.org \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2006-h2007","title":"Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2007-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n29 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n3 SCHEDULE OF STATE REVENUE \n \n32 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n34 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n37 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 22, 2008 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dougherty County Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility ofthe Dougherty County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Dougherty County Board of Education's discretely presented component unit. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for Dougherty County Stadium Authority is based on the reports ofother auditors. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Dougherty County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provides a reasonable basis for our opinions. \n2007 ARL-12X \n \n In our opinion, based on our audit and the report ofother auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Dougherty County Board of Education, as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \nIn accordance with Government Auditing Standards, we have also issued our report dated September 22, 2008, on our consideration of the Dougherty County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope ofour testing ofinternal 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. \n \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through xv and page 29 respectively, are not a required part ofthe basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We and the other auditors 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. \n \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dougherty County Board of Education's basic financial statements. The accompanying supplementary information which consist ofSchedules 2 through 5, 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 by us and the other auditors in the audit ofthe basic financial statements, and in our opinion, based on our audit and the report ofother auditors, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \n \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. \n \nRespectfully submitted, \n \n- \n \n~~~ \n \nRu ell W. Hinton, CPA, CGFM State Auditor \n \nRWH:as 2007 ARL-12X \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2007. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nFinancial Highlights \nFinancial highlights for fiscal year 2007, are as follows: \nThe School District's financial status continued to improve in fiscal year 2007.  Total net assets increased $21.7 million over the course of the year. This increase is \ndue, entirely, to governmental activities.  The increase in net assets was $4.4 million greater than the prior year.  Net capital assets increased $20.0 million. The various capital improvements projects \ncompleted during fiscal year 2007 were part of a long-range Facilities Plan to upgrade all of the School District's schools and facilities. These capital improvements were primarily funded by a 1% special purpose local sales tax approved by the voters of Dougherty County.  The unrestricted (deficit) for Governmental Activities was reduced by $2.3 million.  Fund balance for the Governmental Funds - General Fund increased $2.5 million in fiscal year 2007. \nUsing the Basic Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nSystem-wide Statements \nThe Statement of Net Assets and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net assets are an indicator of whether the School District's financial position is improving or deteriorating. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the System-wide Statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \n- I- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, Federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two major fund types - Governmental Funds and Fiduciary Funds. \nGovernmental Funds \nMost of the School District's financial activities are reported in governmental funds. The fund statements provide more detailed information about the School District's funds, focusing on its most significant \"major\" funds - not the School District as a whole. These funds record how money flows in and out within the current period, and the reports the balances remaining at yearend available for spending in future periods. The governmental fund statements provide a shortterm view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement ofNet Assets and the Statement ofActivities) and governmental funds are reconciled in the financial statements. \nThe School District's governmental funds are the General Fund, Capital Projects Fund, and Debt Service Fund. General operations, the school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the General Fund. \nFiduciary Funds \nThe School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \npurposes and only by those to whom the assets belong. The School District excludes these fund activities from the System-wide financial statements because these fund assets cannot be used to finance operations. \n \nPresentation of Financial Data \n \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2006 and fiscal year 2007. \n \nStatement of Net Assets (Analysis of the School District as a Whole) \n \nAs previously mentioned, the Statement ofNet Assets presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2006 and fiscal year 2007. \n \nTable 1 Net Assets (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease/ \n \nYear 2007 Year 2006 \n \nDecrease \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 29,392 $ 38,328 $ -8,936 \n \n213,985 \n \n193,936 \n \n20,049 \n \nTotal Assets \n \n$ 243,377 $ 232,264 $ 11,113 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 19,519 $ 21,558 $ -2,039 \n \n3,331 \n \n11,853 \n \n-8,522 \n \nTotal Liabilities \n \n$ 22,850 $ 33,411 $ -10,561 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ 212,440 $ 183,772 \n \n8,192 \n \n17,725 \n \n-105 \n \n-2,644 \n \n$ 28,668 -9,533 2,539 \n \nTotal Net Assets \n \n$ 220,527 $ 198,853 $ 21,674 \n \n- lll - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nTotal Assets for Governmental Activities increased $11.1 million in fiscal year 2007 compared to fiscal year 2006. The $8.9 million decrease in Current and Other Assets was offset by an increase in Net Capital Assets of $20.0 million. The increase in Net Capital Assets was the result of major capital improvement projects implemented throughout the fiscal year, including the construction and equipping of a new school and the renovation of several existing school buildings. These projects were part of a long-rage facilities plan to upgrade all of the School District's schools and facilities. Other capital improvements projects included the upgrade of classroom technology, the addition of security and access systems and the replacement ofheating and cooling systems in several of the schools' gymnasiums. Virtually all of these projects were funded by a 1% sales tax approved by the voters of Dougherty County (STEP - \"Sales Tax for Educational Progress\"). See Table 5 for an analysis of the increase in Capital Assets. \nCurrent Liabilities decreased $2.0 million and Long-Term Liabilities decreased $8.5 million. Current Liabilities includes, in part, the balance due to Contractors and Architects for major capital projects. The decrease in Long-Term Liabilities was primarily due to the payments made on bond debt and capital leases. See Table 6 for complete analysis of the reduction on LongTerm Debt at June 30. \nRestricted or designated assets are assets that must be used for a specific purpose. The $9.5 million decrease in Restricted Assets was primarily due to the decrease in funds restricted for Debt Service. By the end of the fiscal year, the outstanding bond debt was reduced to $1.1 million. \nRestricted assets of $8.2 million includes: funds restricted for bus replacement: $0.1 million; funds restricted for the continuation of Federal programs: $0.2 million; funds restricted for debt service: $1.9 million; and funds restricted for capital projects: $6.0 million. \nThe $2.6 million unrestricted deficit reported for fiscal year 2006 was reduced to $0.1 million in fiscal year 2007. This can be attributed, part, to the $2.5 million increase in fund balance for the General Fund. See The School District's Funds below. \nStatement of Activities \nTable 2 shows the changes in net assets for fiscal year 2006 and fiscal year 2007 as reported on the Statement ofActivities. \n- iv - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nTable 2 Change in Net Assets \n(in Thousands) \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease/ \n \nYear2007 \n \nYear2006 Decrease \n \n$ 1,797 102,567 5,961 \n \n$ 1,679 98,068 6,338 \n \n$ 118 4,499 -377 \n \nTotal Program Revenues \n \n$ 110,325 \n \n$106,085 $ 4,240 \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Loss on Demolition of Building \n \n$ 34,880 \n17,417 386 143 \n10,298 1,187 2,965 \n-813 \n \n$ 35,051 $ -171 \n \n7,590 9,899 \n405 141 \n9,406 1,650 2,754 \n \n-7,590 7,518 \n-19 2 \n892 -463 211 \n-813 \n \nTotal General Revenues and Special Item \n \n$ 66,463 \n \n$ 66,896 $ -433 \n \nTotal Revenues \n \n$ 176,788 \n \n$172,981 $ 3,807 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General and School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central and Other Support Services Operations ofNon-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 97,862 \n4,612 5,475 3,202 10,770 2,079 12,472 5,712 3,646 \n468 547 8,159 110 \n \n$ 97,090 $ 772 \n \n4,920 \n \n-308 \n \n5,805 \n \n-330 \n \n3,212 \n \n-10 \n \n10,541 \n \n229 \n \n1,944 \n \n135 \n \n12,099 \n \n373 \n \n5,920 \n \n-208 \n \n3,803 \n \n-157 \n \n515 \n \n-47 \n \n545 \n \n2 \n \n8,862 \n \n-703 \n \n425 \n \n-315 \n \nTotal Program Expenses \n \n$155,114 \n \n$155,681 $ -567 \n \nIncrease in Net Assets \n \n$ 211674 \n \n$ 171300 $ 4,314 \n \n-v- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nThe most significant increase in revenues in fiscal year 2007 was in Program Revenues, mainly, restricted Operating Grants and Contributions. Operating grants received from Federal and State sources were used to fund various instructional programs and staff development costs. State capital grants were used to partially fund the renovation of an elementary school and a high school and the construction of a new middle school building. Revenues from restricted Operating Grants and Contributions increased $4.5 million in fiscal year 2007. Total Program Revenues increased $4.2 million. \nWhile Program Revenues increased, General Revenues from taxes and other special items decreased $0.4 million. Although program revenues make up a majority of the revenues, the School District is still dependent upon tax revenues for governmental activities. This dependence on tax revenues has grown even greater in recent years due to ongoing significant reductions in State funding combined with mandated increases in expenditures. This will be discussed further in the Current Financial Issues section that follows. \nTotal Program Expenses for fiscal year 2007 decreased $0.6 million compared to Program Expenses for fiscal year 2006. Increases occurred in the categories of Instruction, General and School Administration, Business Administration and Maintenance and Operation. The combined total of these increases was $1.5 million. The greatest increase was in the category of Instruction. The remaining categories of Pupil Services, Improvement of Instructional Services, Educational Media Services, Student Transportation Services, Central and Other Support Services, Enterprise Operations, Food Services, and Interest on Long-Term Debt decreased a combined total of $2.1 million. \nDescriptions of Expense Categories \nInstruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local School District. \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. \nBusiness Administration includes the financial and warehouse operations of the School District. \n- Vl - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nMaintenance and Operation ofPlant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. Student Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. Central and Other Support Services include all other support services including personnel services, management information services, and public relations services. Enterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. Community Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. Food Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. Governmental Activities Table 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2006 and fiscal year 2007. This information is presented on the Statement of Activities. The Net Cost of Services reflects the balance of costs that were funded by taxes and other General Revenues. \n- Vll - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nTable 3 Governmental Activities \n(in Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2007 Year 2006 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2007 Year 2006 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations ofNon-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 97,862 $ 97,090 $ 20,728 $ 22,918 \n \n4,612 5,475 3,202 1,719 9,051 2,079 12,472 5,712 2,957 \n689 \n \n4,920 5,805 3,212 1,753 8,788 1,944 12,099 5,920 3,094 \n709 \n \n2,840 2,116 \n961 -947 4,554 1,879 6,969 2,969 2,892 521 \n \n2,880 1,908 1,202 -589 4,962 1,731 7,190 3,656 2,807 \n573 \n \n468 547 8,159 110 \n \n515 545 8,862 425 \n \n441 547 -1,791 110 \n \n477 545 -1,088 425 \n \nTotal Expenses \n \n$ 155.114 $ 155.681 $ 44,789 $ 49.597 \n \nAs previously noted above, Total Expenses, or Total Cost of Services, decreased from $155.7 million in fiscal year 2006 to $155.1 million in fiscal year 2007. Net Cost of Services to the taxpayer decreased from $49.6 million in fiscal year 2006 to $44.8 million in fiscal year 2007, a decrease of$4.8 million. This means that in fiscal year 2007, not only did Total Cost of Services decrease, but a greater portion of the total costs was funded by sources other than taxes, specifically Operating Grants and Contributions. \n \nThe School District's Funds \n \nTable 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances. Capital Projects and Debt Service Funds are combined for presentation purposes. \n \n- Vlll - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(in Thousands) \n \nRevenues \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nExpenditures \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOther Financing Sources (Uses) Transfers In/Out \nNet Change in Fund Balance \nFund Balances - Beginning \nFund Balances - Ending \n \nGeneral Fund \n$ 35,324 529 \n89,720 23,718 \n1,797 459 \n2,965 $ 154,512 \n$ 95,638 47,014 448 547 7,786 \n392 13 \n$ 151,838 \n$ 2.674 \n$ -172 \n$ 2,502 -1,029 \n$ 1,473 \n \nCapital Projects \nand Debt Service \n \nTotals \n \n$ 17,417 5,388 \n728 \n$ 23,533 \n \n$ 35,324 17,946 95,108 23,718 1,797 1,187 2,965 \n$ 178.045 \n \n$ 356 \n24,035 8,265 \n- -3-17 $ 32,973 \n \n$ 95,638 47J70 448 547 7,786 24,035 \n8,657 330 \n$ 184.811 \n \n$ -9.440 $ -6.766 \n \n$ 172 \n$ -9,268 17,152 \n$ 7,884 \n \n$ \n \n0 \n \n$ -6,766 \n \n16,123 \n \n$ 9,357 \n \nRevenues for all governmental funds totaled $178.0 million and expenditures totaled $184.8 million. Revenues were $6.8 million less than expenditures. The fund balance for governmental funds decreased from $16.1 million at the beginning of the fo;cd year to $9.4 million at June 30, 2007. \n \n- lX - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nThe decrease in fund balance occurred in Capital Projects and Debt Service when $9.3 million in sales tax receipts received in prior years were expended in fiscal year 2007 for capital projects and payment of bond debt. \nThe fund balance reported for the Governmental Funds - General Fund increased $2.5 million in fiscal year 2007. This was a substantial increase in fund balance and the deficit fund balance reported at the beginning of the fiscal year was converted to an excess fund balance by the end of the fiscal year. Food service operations provided $1.4 million of the increase in fund balance. All other general operations provided the additional $1.1 million increase in fund balance. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget to Actual Schedule \"1. \" \nDuring fiscal year 2007, the School District amended its general fund budget as needed. The Original Budget approved by the School District's Board in June, 2007, included revenues and expenditures for State and Federal Grants that were known at the time. An additional $3.9 million in Federal grants were later added to the budget when notice of those additional grants was received. The receipt of the additional grants not only required an increase in revenues but also an increase in expenditures. This is because Federal grants can only be used to fund additional programs and cannot take the place of State mandated funds or local funds that previously funded the same programs. \nSome of the budgeting challenges the School District faced in fiscal year 2007 included a $1.8 million \"austerity reduction\" of the State educational allotment, a State mandated 4% cost of living increase for teachers, bus drivers and child nutrition workers, and a $1.4 million increase in state health insurance costs due to a 17.7% increase in premiums. In addition, fuel costs increased for the third year in a row while State transportation funding decreased. The full staffing of a newly formed police force for the entire year created additional expenditures for Maintenance and Operation Services. Increased energy costs and maintenance services associated with the opening of three new schools also created additional expenditures for Maintenance and Operations. Floor space in the new school buildings was substantially greater than the floor space of the buildings they replaced. The additional floor space required more energy to heat and cool and additional maintenance personnel. \n-x- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nCapital Assets and Debt Administration \n \nCapital Assets \n \nSince fiscal year 2002, the School District developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. In addition, it has updated the technology in schools for student's use and replaced some of its aging fleet of vehicles. The School District has been able to achieve this by the use of the 1% Sales Tax. \n \nAt the end of fiscal year 2007 the School District, $214.0 million was invested in capital assets. Table 5 compares fiscal year 2006 balances to fiscal year 2007 balances. \n \nTable 5 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease/ \n \nYear 2007 Year 2006 Decrease \n \nLand Construction in Progress Buildings and Building Improvements Equipment \n \n$ 9,057 21,047 179,683 4,198 \n \n$ 9,020 52,669 127,708 4,539 \n \n$ \n \n37 \n \n-31,622 \n \n51,975 \n \n-341 \n \nTotal \n \n$ 213!985 $ 1931936 $ 20!049 \n \nCapital Assets increased by $20.0 million in fiscal year 2007 as shown in Table 5. The decrease in Construction in Progress is offset by an increase in Buildings and Building Improvements. This represents the completion of construction and the opening of three new elementary schools, one new middle school, and a \"Center of Excellence\" at one of the high schools. All of these new facilities opened in August, 2006 for the 2007 school year. The construction of a new elementary school was near completion by the end of the fiscal year. The new school is expected to open in August, 2007. The replacement of heating and cooling systems in several of the School District's gymnasiums was accomplished during the year as well as the addition of security and access systems in several of the schools. The addition of security and access systems is planned for all of the School District's schools and facilities, and will greatly improve the safety and security of its students and staff. Virtually all of the funding for these projects was provided by a 1% sales tax approved by the voters of Dougherty County (STEP - \"Sales Tax for Educational Progress\"). \n \n- XI - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nDebt \n \nTable 6 summarizes the Long-Term Debt outstanding at June 30 for fiscal year 2006 and fiscal year 2007. \n \nTable 6 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease/ \n \nYear 2007 Year 2006 Decrease \n \nGeneral Obligation Bonds Compensated Absences Capital Leases Claims Payable - Workers' Compensation \n \n$ 1,237 1,191 308 595 \n \n$ 9,723 1,148 700 282 \n \n$ -8,486 43 \n-392 313 \n \nTotal \n \n$ 3,331 $ 11,853 $ -8,522 \n \nThe General Obligation Bonds debt shown in Table 6 reflects a balance payable of $1.1 million for a 2004 General Obligation Bond issuance, plus $0.1 million in unamortized bond premiums. \n \nThe $1.2 million debt for Compensated Absences is the School District's estimated financial obligation for future payments to employees for vacation leave. \n \nThe $0.3 million for Capital Leases shown above is final payment due on the lease purchase of 23 buses added to the school bus fleet in fiscal year 2003. \n \nThe Dougherty County School District is self insured for Workers' Compensation claims. The Claims Payable for Workers' Compensation of $0.6 million shown above represents estimated liability for existing claims at June 30, 2007. \n \nCurrent Financial Issues \n \nThe School District has faced several financial challenges in the recent years. Such challenges include the following: rising costs in employee benefits, state mandated teacher salary increases, rising costs in fuel and textbooks, declining student enrollment (FTE), and a stagnant tax digest. \n \nIn fiscal year 2002, the State of Georgia mandated a 4% salary raise for all certified staff, bus drivers and child nutrition workers. In fiscal year 2003, the state introduced \"austerity reductions\" which served to reduce the State's educational funding which had been calculated according to the State funding formula. State mandated salary raises were continued, however, for fiscal year 2003. In fiscal year 2004, the State applied more reductions to the State allotment at the beginning of the year and then increased the reduction mid-year. Every fiscal year \n \n- Xll - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nthereafter, with the exception of fiscal year 2004, certified salary raises were mandated by the state. State austerity reductions were also applied every year thereafter. As of fiscal year 2007, the effect of the mandated raises is a cumulative 15.25% certified salary increase that cost the School District approximately $20.0 million. State austerity reductions have resulted in a cumulative reduction in State funding of$14.0 million. \nIn addition, although the cost of items such as fuel, textbooks, educational supplies and health benefits have also increased during this period, no inflationary adjustment was made to the formula to provide additional State funding for these rising costs. \nState funding falls far short of the additional cost of salaries and benefits and the rising costs of other educational expenditures. Over time, these State funding reductions have significantly increased the School District's dependence on local funding. However, for the past several years, there has been virtually no growth in the local tax digest. In fiscal year 2004, when faced with austerity reductions in mid-year fiscal year 2003 and again in fiscal year 2004, the Board raised the millage rate to 19 mills. At the same time, the School District began successfully implementing cost savings and spending reductions in all areas of support operations including Student Transportation, Maintenance, General Administration, School Food Service, Business Administration, and Central Support Services. The School District has continued to identify savings and reduce spending in these areas every year since the austerity reductions were introduced. \nFor the digest year 2006, the Board took advantage of the opportunity to roll back the millage rate. The millage rate for fiscal year 2007 was set at 18.984 mills. In fiscal year 2008, real property reassessments planned by the Dougherty County Tax Department for the 2007 Digest was expected to relieve the strain to some degree. As a result of the reassessments, school tax revenues increased approximately $5.7 million. To ease the burden of the taxpayer as much as possible, the Board rolled the millage rate back to 18.45. State funding was reduced another $1.4 million and a 3% certified salary increase was mandated by the State. \nThe public's response to the reassessments resulted in numerous property tax appeals and a lawsuit against the Dougherty County Commissioners. The lawsuit was filed by a group of Dougherty County residents on the basis that the reassessments were not consistently applied throughout the County and it has continued to move forward in the legal process. Since there is no court precedent by which to predict the outcome of this lawsuit, the School District must consider and plan for the worst outcome. If the lawsuit is successful and the 2007 Tax Digest is rejected, the Dougherty County School District could be required to refund the additional $5.7 million received in fiscal year 2008. The $5.7 million is the difference between actual tax proceeds received based on the 2007 Digest and the tax proceeds the School District would have received using the 2006 Digest. Local ad valorem tax revenues comprise approximately 32% of the total fiscal year 2009 general operating budgeted revenues. The loss of these revenues could significantly impact direct instructional programs since these areas comprise 68% of the general operating budgeted expenditures. \n- Xlll - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \n \nOther items affecting the financial status of the School District is the slow decline in student enrollment (FTE) and the State's most recent announcements of additional reductions in state funding. \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. Since fiscal year 1995, after a major flood destroyed several of the School District's schools, student enrollment has slowly declined. The FTE count for the school year immediately following the flood showed a decline of 920 FTE's. From fiscal year 1997 to fiscal year 2002 the FTE continued to lose another 982 FTE's. The FTE count for the period fiscal year 2002 to fiscal year 2008 is as follows: \n \nfiscal year 2002 fiscal year 2003 fiscal year 2004 fiscal year 2005 fiscal year 2006 fiscal year 2007 fiscal year 2008 \n \n16,613 16,448 16,362 16,522 16,731 16,376 16,208 \n \nThe drop in the FTE count for fiscal year 2008 resulted m decrease m State funding of approximately $1.4 million. \n \nIn August, 2008, the School District was notified by the State that funding for fiscal year 2009 would be reduced an additional 2% due to the State's recent decline in State revenues for the 2008 calendar year and that 3% reductions were planned for fiscal year 2010. The State also warned that these reductions could increase if the trend in the State's revenues worsens over the next few months. These reductions will be in addition to the $1.0 million in austerity reductions already budgeted for fiscal year 2009. The School District's management is currently in the process of reviewing all programs for possible reductions. In addition, School District management plans to implement a hiring freeze by the end of August, 2008. Expenditures will be closely monitored and reviewed for the remainder of the year to ensure adherence to the expenditure restrictions and to identify additional cost savings and reductions. \n \nIn March, of fiscal year 2007, the voters of Dougherty County approved a continuation of the 1% sales tax (Sales Tax for Educational Progress), and the issuance of general obligation bonds in the maximum principal amount of $40.0 million. These sales tax revenues will be used to complete the renovation of schools outlined by the long-range facilities plan. Other sales tax projects include the installation of safety and access controls at fifteen schools and various other facilities, replacement of carpeting and gym flooring, and the purchase of musical instruments and other academic/instruction related equipment. State bus replacement funds will be used to lease purchase 12 buses within the next fiscal year. The School District plans to issue General Obligation bonds in the amount of $25.0 million in the fall of fiscal year 2009. \n \n- xiv - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 At the end of fiscal year 2005, the Child Nutrition Program (food services operations) reported a deficit of $3.9 million. Operational cost controls implemented by program management since fiscal year 2005 have resulted in a deficit reduction of $2.5 million. The fiscal year 2007 deficit balance is projected to be fully eliminated by the fall of 2008 (fiscal year 2009). The Dougherty County School District recognizes its responsibilities as a steward of taxpayer dollars and State and Federal funds and strives to emphasize student achievement while maintaining sound fiscal management of those funds. Contacting the School District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Robert Lloyd, Executive Director of Business and Operations, at the Dougherty County School District, 200 Pine Avenue, Albany, Georgia 31702. You may also email your questions to robert.lloyd@dougherty.kl2.ga.us. \n- xv - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Prepaid Items Capital Assets Land Construction in Progress Buildings and Improvements Equipment Stadium Improvements Less: Accumulated Depreciation \n \nPRIMARY GOVERNMENT GOVERNMENTAL \nACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n292,149.10 $ \n \n9,172,770.24 \n \n4,131,080.68 11,907,843.81 \n3,079,369.63 265,935.99 416,437.14 127,002.38 \n \n9,057,267.66 21,046,659.31 263,661,231.31 15,414,509.44 \n \n-95, 194,976.79 \n \n182,799.00 \n25,000.00 \n410,000.00 308,976.00 239,886.00 2,586,683.00 -342 954.00 \n \nTotal Assets \n \n$ \n \n243,377,279.90 $ =====3=4=10=3=9=0=.o=o \n \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted Governmental Activities (Deficit) Dougherty County Stadium Authority \nTotal Net Assets \n \n$ \n \n681,783.97 $ \n \n16,182,210.53 \n \n1,418,020.83 \n \n177,543.58 \n \n1,017,399.45 \n \n41,899.63 \n \n1,822,606.91 1,508,596.65 \n \n$ \n \n22,850,061.55 $ \n \n$ \n \n212,439,763.77 $ \n \n153,193.52 154,405.67 1,888,371.46 5,996,059.01 \n \n-104,575.08 \n \n$ \n \n220,527,218.35 $ \n \n47,171.00 \n47171.00 3,202,591.00 \n160 628.00 3,363,219.00 \n \nTotal Liabilities and Net Assets \n \n$ \n \n243,377,279.90 $ =====3=,4=1=0.,.,3=90==00= \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Loss on Disposal of Buildings \nTotal General Revenues and Special Items \nChanges in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n97,862,068.44 $ \n \n4,612,444.18 5,475,246.02 3,201,741.91 1,718,803.17 9,050,838.68 2,078,838.77 12,472,295.29 5,711,961.04 2,957,223.23 \n689,274.20 \n \n468,109.98 546,572.68 8,158,881.99 109 849.51 \n \n$ 155,114,149.09 $ \n \n720,914.78 \n1,076,559.57 1,797 474.35 \n \n$ \n \n233,704.00 $ _ _--'-10\"--o\"\"',o'\"\"'o\"\"'o.-'-oo\"'\" \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -2 - \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET(EXPENSES)REVENUES \n \nAND CHANGES IN NET ASSETS \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \n$ \n \n72,288,036.01 $ \n \n1,765,147.29 3,317,447.00 2,069,564.12 2,665,570.68 4,343,959.93 \n50,685.36 5,365,600.65 2,171,195.33 \n31,543.75 167,816.27 \n \n8,330,553.63 $ 102,567,120.02 $ \n \n4,124,924.79 $ \n7,227.32 41,671.27 171,199.13 \n153,097.81 149,001.96 137,512.66 572,169.00 33,824.43 \n26,688.80 \n543,191.33 \n5,960,508.50 $ \n \n-20,728,192.86 \n-2,840,069.57 -2,116,127.75 \n-960,978.66 946,767.51 -4,553,780.94 -1,879, 151.45 -6,969, 181.98 -2,968,596.71 -2,891,855.05 -521,457 .93 \n-441,421.18 -546,572.68 1,791,422.54 -109 849.51 \n-44,789,046.22 \n \n$ \n \n34,880,041.53 \n \n17,416,655.26 385,964.88 143,416.58 \n10,298,499.00 1,187,184.34 $ 2,964,984.77 \n \n-813,539.09 \n \n$ \n \n66,463,207.27 $ \n \n$ \n \n21,674,161.05 $ \n \n198,853,057.30 \n \n7,030.00 12,854.00 \n19 884.00 -113,820.00 3 477 039.00 \n \n$ \n \n220,527,218.35 $ =====3=,3=6=3=,2=1=9.=0=0 \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2007 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Prepaid Items Due From Other Funds \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n276,914.75 $ \n \n13,705.30 $ \n \n1,529.05 $ \n \n3,626,812.49 \n \n1,961,291.71 \n \n3,584,666.04 \n \n1,334,408.41 10,762,709.11 \n3,079,369.63 265,935.99 416,437.14 127,002.38 \n \n2,875,927.30 1,145,134.70 \n1,697,823.63 \n \n292,149.10 9,172,770.24 \n4,210,335.71 11,907,843.81 \n3,079,369.63 265,935.99 416,437.14 127,002.38 \n1,697,823.63 \n \nTotal Assets \n \n$ 19,889,589.90 $ 7,693,882.64 $ 3,586,195.09 $===3=1,.,,16=9=,6=6=7=.6=3 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Claims Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue Due To Other Funds \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Debt Service Inventories Capital Projects \nUnreserved Designated for Self-Insurance Undesignated Reported in: General Fund \nTotal Fund Balances \n \n$ \n \n178,903.37 $ \n \n16,182,210.53 \n \n1,418,020.83 \n \n595,288.44 \n \n41,899.63 \n \n502,880.60 \n177,543.58 1,017,399.45 \n$ \n \n$ 1,697,823.63 \n \n$ 18,416,322.80 $ 1,697,823.63 $ 1,697,823.63 $ \n \n681,783.97 16,182,210.53 \n1,418,020.83 595,288.44 177,543.58 \n1,017,399.45 41,899.63 \n1,697,823.63 \n21,811,970.06 \n \n$ \n \n153,193.52 \n \n$ \n \n$ 1,888,371.46 \n \n416,437.14 \n \n$ 5,996,059.01 \n \n1,064,342.49 \n \n-160,706.05 \n \n$ 1,473,267.10 $ 5,996,059.01 $ 1,888,371.46 $ \n \n153,193.52 1,888,371.46 \n416,437.14 5,996,059.01 \n1,064,342.49 \n-160,706.05 \n9,357,697.57 \n \nTotal Liabilities and Fund Balances \n \n$ 19,889,589.90 $ 7,693,882.64 $ 3,586,195.09 $===31=,1=6=9'==66=7=.6=3 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases Compensated Absences Unamortized Bond Premiums \nTotal Long-Term Liabilities \n \n$ 9,357,697.57 \n \n$ 9,057,267.66 21,046,659.31 \n263,661,231.31 15,414,509.44 -95,194,976.79 \n \n213,984,690.93 \n \n-79,255.03 \n \n$ -1,090,000.00 -307,737.16 \n-1,190,987.96 -147, 190.00 \n \n-2,735,915.12 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 220,527,218.35 \n \nThe notes to the basic financial statements are an integral part of this statement. -5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 35,323,960.56 \n \n529,381.46 $ 17,416,655.26 \n \n89,719,554.79 \n \n5,388,339.50 \n \n23,718,233.23 \n \n1,797,474.35 \n \n459,087.26 \n \n62,034.12 $ \n \n2 964 984.77 \n \n$ 154,512,676.42 $ 22,867,028.88 $ \n \n$ 666,062.96 \n \n35,323,960.56 17,946,036.72 95,107,894.29 23,718,233.23 \n1,797,474.35 1,187,184.34 2,964,984.77 \n \n666,062.96 $ 178,045,768.26 \n \n$ 95,638,204.12 \n \n$ 95,638,204.12 \n \n4,611,020.40 5,519,360.17 3,095,074.09 1,718,803.17 8,937,105.10 1,913,185.20 $ 12,086,133.90 5,453,232.61 2,990,490.87 \n689,274.20 448,292.99 546,572.68 7,786,071.73 \n \n32,634.48 322,904.04 \n24,035,375.18 \n \n4,611,020.40 5,519,360.17 3,095,074.09 1,718,803.17 8,937,105.10 1,945,819.68 12,409,037.94 5,453,232.61 2,990,490.87 \n689,274.20 448,292.99 546,572.68 7,786,071.73 24,035,375.18 \n \n391,846.84 13 408.51 \n \n$ 8,265,000.00 317 325.00 \n \n8,656,846.84 330 733.51 \n \n$ 151,838,076.58 $ 24,390,913.70 $ 8,582,325.00 $ 184,811,315.28 \n \n$ \n \n2,674,599.84 $ -1,523,884.82 $ -7,916,262.04 $ -6,765,547.02 \n \n$ 6,876,261.06 \n \n$ \n \n6,876,261.06 \n \n$ \n \n-171 791.88 \n \n$ -6 704 469.18 \n \n-6,876,261.06 \n \n$ \n \n-171 791.88 $ 6,876,261.06 $ -6704469.18 $ \n \n0.00 \n \n$ \n \n2,502,807.96 $ 5,352,376.24 $ -14,620,731.22 $ -6,765,547.02 \n \n-1,029,540.86 \n \n643,682.77 \n \n16,509,102.68 \n \n16,123,244.59 \n \nFund Balances - Ending \n \n$ \n \n1 473 267.10 $ 5,996,059.01 $ 1,888,371.46 $ ====9'=35=7==,6=9=7.=57= \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \n \n$ -6,765,547.02 \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \n \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \n \n$ 25,059,262.43 -4173 211.16 \n \n20,886,051.27 \n \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \n \n-443,919.03 \n \nIn the Statement of Activities, only the gain or loss on the sale/disposal of the building and equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the building and equipment sold/disposed. \n \n-837,137.20 \n \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \n \nAmortized Bond Premium Bond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ \n \n220,884.00 \n \n8,265,000.00 \n \n391,846.84 \n \n8,877,730.84 \n \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \n \nIncrease in Compensated Absences \n \n-43 017.81 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 21,674,161.05 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \nASSETS Accounts Receivable, Net \nFederal Government Other \nTotal Assets \nLIABILITIES Cash Overdraft Funds Held for Others \nTotal Liabilities \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n4,319.50 \n \n50,930.15 \n \n$ ==55='=24=9=.6=5 \n \n$ \n \n11,055.36 \n \n44,194.29 \n \n$ ====55='=24=9=.6===5 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 18 for additional component unit disclosures. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dougherty County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n \n-9- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \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. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe Dougherty County Board of Commissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on July 10, 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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1 % of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $35,323,960.56. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nThe tax millage rate levied for the 2006 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.984 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $17,416,655.26 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCONSUMABLE SUPPLIES On the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2007, are recorded as prepaid items. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nthe assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Buildings and Improvements Equipment \n \nAny Amount $ 5,000.00 $ 5,000.00 \n \nNIA 20 to 80 years 4 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \n \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nDEFICIT FUND BALANCES \n \nThe fund reporting a deficit fund balance at June 30, 2007, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Fund Type School Food Service Fund \n \n$ 1,506,668.78 \n \nOperational cost controls implemented in fiscal year 2006 and fiscal year 2007 resulted in reducing the deficit by more than $2 million. By continuing to implement these cost controls, management expects the Child Nutrition Program deficit to be fully eliminated by the fall of fiscal year 2009. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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. At June 30, $5,162.44 ofdeposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $5,256,597.16. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nPRIMARY GOVERNMENT \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 5,162.44 \n \n2 \n \n0.00 \n \n3 \n \n4,721,413.36 \n \nTotal \n \n$4,726,575.80 \n \nCOMPONENT UNIT \n \nAt June 30, 2007, Dougherty County Stadium Authority's bank balances of $182,799.00 were classified by custodial credit risk category as follows: \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n6,301.00 \n \nTotal \n \n$ 6,301.00 \n \nCATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2007, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nOther Investments U. S. Treasury Money Market Mutual Funds \n \n$ 407,608.58 \n \nInvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \n \n8.765,161.66 \n \nTotal Investments \n \n$ 9,172.770.24 \n \nThe Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Local Government Investment Pool is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html. \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2007, was 15 days. \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value ofan investment. The School District does not have a formal policy for managing interest rate risk. \n \nAt June 30, 2007, the School District's investment consisted of U. S. Treasury Money Market Mutual Funds (open-end mutual funds) which had an investment maturity ofless than one year. \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe U.S. Treasury Money Market Mutual Funds are invested in treasury obligations managed by First American Treasury Investments. The funds are rated AAAm by Standard and Poor's. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nPRIMARY GOVERNMENT \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Building and Improvements Equipment \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances July 1. 2006 \n \nIncreases \n \nDecreases \n \nBalances June 30. 2007 \n \n$ 9,020,228.33 $ 37,039.33 \n \n$ 9,057,267.66 \n \n52.668.506.16 16.839. 180.53 $48,461,027.38 21.046.659.31 \n \n$ 61,688.734.49 $16.876.219.86 $48,461,027.38 $ 30.103.926.97 \n \n$210,220,137.80 $55,762,942.15 $ 2,321,848.64 $263,661,231.31 \n \n14,670,814.54 \n \n881,127.80 \n \n137,432.90 15,414,509.44 \n \n82,512,324.97 10.131.585.00 \n \n2,974,368.04 1.198.843.12 \n \n1,508,309.55 113,834.79 \n \n83,978,383.46 11.216.593.33 \n \n$132.247.042.37 $52.470.858.79 $ 837,137.20 $183,880.763.96 \n \n$193 935.776.86 $69 347.078.65 $49.298.164.58 $213.984.690.93 \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nCapital assets being acquired under capital leases as of June 30, 2007, are as follows: \n \nEquipment Less: Accumulated Depreciation \n \nGovernmental Funds \n$ 1,621,021.28 477,081.70 \n \n$ 1,143,939.58 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Enterprise Operations Food Services \n \n$ 2,522,073.40 \n \n$ 5,597.48 32,273.96 132,591.88 118,572.63 115,400.42 106,502.09 \n672,636.58 26,196.66 \n \n1,209,771.70 20,670.19 \n420,695.87 \n \n$4,173,211.16 \n \nCOMPONENT UNIT \n \nBalances July 1, 2006 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2007 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand \n \n$ 410,000.00 $ \n \n0.00 $ \n \n0.00 $ 410,000.00 \n \nCapital Assets Being Depreciated Building Equipment Stadium Improvements \n \n$ 308,976.00 234,936.00 $ \n2,586,683.00 \n \n$ 4,950.00 \n \n0.00 $ 308,976.00 239,886.00 \n2,586,683.00 \n \nLess Accumulated Depreciation for: Building Equipment Stadium Improvements \n \n19,311.00 60,809.00 162,866.00 \n \n7,724.00 25,740.00 66,504.00 \n \n27,035.00 86,549.00 229,370.00 \n \nTotal Capital Assets, Being Depreciated, Net $2,887,609.00 $ -95,018.00 $ \n \n0.00 $2,792,591.00 \n \nGovernmental Activity Capital Assets - Net $ 3.297.609.00 $ -95,018.00 $ \n \n0.00 $3,202,591.00 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2007, were as follows: \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \n$ $ 16,222.62 \n \n1,529.05 \n \n$ 3,584,666.04 $ 1,301,061.17 $ 660,230.54 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2007, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nDistrict-wide Capital Projects Fund Debt Service Fund \n \n$ 1,697,823.63 $ 1,697,823.63 \n \n$ 1,697,823.63 $ 1,697,823.63 \n \nTransfers are used to move sales tax revenues to provide supplemental funding for capital construction projects. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2007, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nGeneral \n \nDebt Service \n \nFund \n \nFund \n \nDistrict-wide Capital Projects \n \n$ 171,971.88 $6,704,469.18 \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 8: INTERFUND TRANSFERS \n \nTransfers are used to (1) move property tax revenues collected by the General Fund to cover a portion of employee's salaries not funded as a part of the Special Purpose Local Option Sales Tax (SPLOST) projects and (2) move excess SPLOST revenues collected by Debt Service Fund in prior years to the District-Wide Capital Projects fund to fund Capital Project Acquisitions. \n \nNote 9: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \n2006 2007 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ 167,424.00 $ 797,835.00 $ 682,966.00 $ 282,293.00 $ 282,293.00 $ 1,156,102.32 $ 843,106.88 $ 595,288.44 \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 9: RISK MANAGEMENT \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2006 2007 \n \n$ \n \n0.00 $ 35,176.00 $ 35,176.00 $ \n \n0.00 \n \n$ \n \n0.00 $ 28,470.00 $ 28,470.00 $ \n \n0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ 50,000.00 $ 250,000.00 \n \nNote 10: OPERATING LEASES \n \nDougherty County Board of Education has entered into various leases as lessee for copiers, fax machines and mailing machines. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2007, for governmental funds amounted to $351,401.72. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2008 \n \n$ 358,584.00 \n \nNote 11: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 11: SHORT-TERM DEBT \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $======0..,..0==0 $14,000,000.00 $14.000.000.00 $====0..,..0==0 \n \nNote 12: LONG-TERM DEBT \n \nCAPITAL LEASES The Dougherty County Board ofEducation entered into various lease agreements for buses and cars. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. \n \nCOMPENSATED ABSENCES Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2004 \n \n2.0%-4.0% $ 1,090,000.00 \n \nVoters have authorized $40,000,000.00 in general obligation debt for the purpose offunding (1) the school renovations and improvements, land acquisition for future expansion, certain capital repairs and modifications, (2) additional classroom technology, system-wide replacement of computers, upgrading oftechnology, (3) additional safety and security equipment, (4) vehicle and equipment replacement and (5) related financing, project management and elections costs, which was not issued as of June 30, 2007. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 12: LONG-TERM DEBT \n \nCapital Leases \n \nGovernmental Funds \n \nGeneral \n \nCompensated \n \nClaims \n \nObligation \n \nAbsences \n \nPaxable \n \nBonds \n \nUnamortized Bond \nPremium \n \nTotal \n \nBalance July 1, 2006 \n \n$ 699,584.00 $1,147,970.15 $ 282,293.00 $ 9,355,000.00 $ 368,074.00 $11,852,921.15 \n \nAdditions Annual Leave Earned Claims and Changes In Estimates \n \n1,033,577.72 \n \n1,156,102.32 \n \n1,033,577.72 1,156,102.32 \n \nDeductions Annual Leave Utilized Debt Retired Claims Paid Bond Premiums Amortized \n \n391,846.84 \n \n990,559.91 \n \n8,265,000.00 843,106.88 \n \n220,884.00 \n \n990,559.91 8,656,846.84 \n843,106.88 \n220,884.00 \n \nBalance June 30, 2007 $ 301137.16 $ 1,120,287.26 $ 525,288.44 $ 1,Q9Q,QQQ,QQ $ 147,120.QQ $ 3,331,203 56 \n \nPortion of Long-Term Debt Due within One Year $ 307,737.16 $ 118,812.66 $ 158,867.09 $ 1,090,000.00 $ 147 190.00 $ 1,822,606.91 \n \nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2008 \n \n$ 307,737.16 $ 4,008.69 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \nUnamortized Bond \nPremium \n \n2008 \n \n$ 1,090,000.00 $ 24,525.00 $ 147,190.00 \n \nNote 13: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $2,719,488.63 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $2,626,584.73 \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 13: ON-BEHALF PAYMENTS \n \nOffice of Treasury and Fiscal Services Paid to the Teachers Retirement System For Teachers Retirement (TRS) Employer's Cost In the amount of $69,871.90 \n \nPaid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $23,032.00 \n \nNote 14: SPECIAL ITEMS \n \nIn fiscal year 2007, the Dougherty County Board of Education demolished the Jackson Heights Elementary School. The loss associated with demolition is reported as a special item on the Statement ofActivities. \n \nNote 15: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007: \n \nProject \n \nUnearned Executed Contracts \n \n07RA-647-008 Monroe Track and Field Renovations to Old Lincoln Elementary Newton Road Transportation Shop Paving Improvements Sherwood Elementary Civil/Landscaping Improvements Jackson Heights Civil/Landscaping Improvements Demolition of Old Radium Springs Middle Radium Springs Middle Asbestos Abatement Administration HVAC Upgrade Lake Park Gym/Classroom HVAC Update \n \n$ 664,146.71 600,611.83 50,665.00 245,850.00 54,080.00 49,500.00 177,998.45 80,200.00 32,032.00 223,346.00 \n \n$ 2,178,429.99 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 16: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 17: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 7,725,403.24 $ 7,389,992.00 $ 7,271,599.00 \n \nNote 18: COMPONENT UNIT \n \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit ofthe School District and is discretely presented in the School District's financial statements. \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 18: COMPONENT UNIT \nThe Authority utilizes the modified accrual method ofaccounting. The Authority has implemented the financial reporting requirements of GASB Statement Nos. 33 and 34. The Authority's fiscal year is July 1 through June 30. \n \n-27 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under} Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses} \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 35,253,449.00 $ 35,253,449.00 $ 35,323,960.56 \n \n529,381.46 \n \n85,900,742.00 \n \n85,853,998.63 \n \n89,719,554.79 \n \n23,197,542.78 \n \n27,180,437.42 \n \n23,718,233.23 \n \n1,829,803.25 \n \n2,088,986.71 \n \n1,797,474.35 \n \n335,200.00 \n \n335,254.26 \n \n459,087.26 \n \n1,298,285.02 \n \n1477906.88 \n \n2 964 984.77 \n \n$ 147,815,022.05 $ 152,190,032.90 $ 154,512,676.42 \n \n$ 92,734,703.15 $ 94,031,343.41 $ 95,638,204.12 \n \n4,411,075.54 5,547,742.55 3,024,199.61 2,002,329.12 7,955,382.46 1,776,423.23 12,215,513.31 5,601,620.79 1,613,467.95 \n830,804.87 9,540,949.47 \n532,310.00 \n \n4,698,076.26 6,980,880.02 3,074,366.29 2,107,035.45 8,002,648.26 1,790,771.18 12,546,624.38 5,748,723.68 1,778,579.56 \n892,908.52 9,968,703.77 \n656,310.00 3,240.00 \n \n4,611,020.40 5,519,360.17 3,095,074.09 1,718,803.17 8,937,105.10 1,913,185.20 12,086,133.90 5,453,232.61 2,990,490.87 \n689,274.20 7,786,071.73 \n448,292.99 546,572.68 \n405,255.35 \n \n$ 147,786,522.05 $ 152,280,210.78 $ 151,838,076.58 \n \n$ \n \n28 500.00 $ \n \n-90 177.88 $ \n \n2,674,599.84 \n \n$ \n \n419,000.00 $ \n \n555,343.28 \n \n-447 500.00 \n \n-447 500.00 $ \n \n-171 791.88 \n \n$ \n \n-28 500.00 $ \n \n107 843.28 $ \n \n-171,791.88 \n \n$ \n \n0.00 $ \n \n17,665.40 $ \n \n2,502,807.96 \n \n-3 577 437.31 \n \n-3,577,437.31 \n \n-1,029,540.86 \n \nFund Balances - Ending \n \n$ \n \n-3 577 437.31 $ \n \n-3,559, 771.91 $ \n \n1,473,267.10 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1} Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. \n-29- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Direct Impact Aid Fund for the Improvement of Education Pass-Through From Georgia Department of Education Charter Schools Comprehensive School Reform Demonstration English Language Acquisition Grants Enhancing Education Through Technology Program Even Start Improving Teacher Quality State Grants Mathematics and Science Partnerships Migrant Education Reading First State Grants Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ \n \n7,179,096.60 \n \n$ \n \n7,179,096.60 \n \n10.550 \n \nN/A \n \n383,628.95 \n \n$ \n \n7,562,725.55 \n \n94.004 \n \nN/A $ \n \n12 629.34 \n \n84.027 84.173 \n \nNIA \n \n$ \n \n3,541,544.73 \n \nN/A \n \n143 750.00 \n \n$ \n \n3,685,294.73 \n \n84.041 84.215 \n84.282 84.332 84.365 84.318 84.213 84.367 84.366 84.011 84.357 84.186 84.298 84.010 84.048 \n \n(3) 96,481.21 \n \nN/A \n \n118,517.00 \n \nN/A \n \n213,923.00 \n \nN/A \n \n7,524.82 \n \nN/A \n \n302,656.68 \n \nN/A \n \n180,520.00 \n \nN/A \n \n1,402,008.12 \n \nN/A \n \n70,586.00 \n \nN/A \n \n25,795.00 \n \nN/A \n \n1,120,548.56 \n \nN/A \n \n116,444.00 \n \nN/A \n \n36,875.03 \n \nN/A \n \n7,983,001.56 \n \nNIA \n \n211 909.88 \n \n$ 15,572,085.59 \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Education Cooperative Agreements to Support Comprehensive School Health Programs to Prevent the Spread of HIV and Other Important Health Problems Pass-Through From Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse \n \n93.938 93.959 \n \nN/A \n \n$ \n \nN/A \n \n3,515.33 17 921.03 \n \nTotal U. S. Department of Health and Human Services \n \n$ _ _ _2_1~4_36_.3_6_ \n \nLabor, U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Workforce Investment Act Youth Activities \n \n17.259 \n \nN/A \n \n$ _ _ _6_8,~9_12_.3_2_ \n \nDefense, U.S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marine Corps R.O.T.C. Program \n \n$ \n \n70,282.41 \n \n97 409.23 \n \nTotal U.S. Department of Defense \n \n$ _ _ _1~6_7~6~91_.6_4_ \n \nTotal Federal Financial Assistance \nNIA = Not Available \n \n$ ==2=3-=,4=0=5,..,4=80=.8=0= \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,509,988.34) were not maintained separately and are included in the 2007 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $226,597.17 do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \n \n$ 1,040,633.15 \n \n$ 1,040,633.15 \n \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Category V Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Graduation Coaches Health Insurance National Teacher Certification Preschool Handicapped Program Pupil Transportation - State Bonds Remedial Summer School Severely Emotionally Disturbed Statewide K-8 Reading and Math Teachers' Retirement \n \n5,827,912.00 391,825.00 \n12,981,576.00 988,917.00 \n6,198,171.00 726,620.00 \n1,896,460.00 8,651,745.00 7,900,844.00 1,950,601.00 \n264,701.00 2,312,483.00 3,582,698.00 \n753,014.00 588,707.00 \n20,813.00 1,278,537.00 \n289,595.00 754,826.00 113,358.00 1,688,099.00 571,169.00 303,946.00 \n1,736,757.00 3,457,015.00 4,226,396.00 \n1,799,461.00 172,169.00 285,742.00 52,178.00 37,717.00 304,059.00 \n10,298,499.00 482,452.00 96,018.35 \n-1,485,604.00 \n160,300.00 2,626,584.73 \n33,799.00 354,511.00 400,000.00 \n14,800.95 2,518,153.00 \n287,121.27 69,871.90 \n \n5,827,912.00 391,825.00 \n12,981,576.00 988,917.00 \n6,198,171.00 726,620.00 \n1,896,460.00 8,651,745.00 7,900,844.00 1,950,601.00 \n264,701.00 2,312,483.00 3,582,698.00 \n753,014.00 588,707.00 \n20,813.00 1,278,537.00 \n289,595.00 754,826.00 113,358.00 1,688,099.00 571,169.00 303,946.00 \n1,736,757.00 3,457,015.00 4,226,396.00 \n1,799,461.00 172,169.00 285,742.00 52,178.00 37,717.00 304,059.00 \n10,298,499.00 482,452.00 96,018.35 \n-1,485,604.00 \n160,300.00 2,626,584.73 \n33,799.00 354,511.00 400,000.00 \n14,800.95 2,518,153.00 \n287,121.27 69,871.90 \n \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of Foreign Language Model Program \nHuman Resources, Georgia Department of Year Round and Summer Learning \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 5,388,339.50 $ 5,388,339.50 \n \n$ \n \n23,032.00 \n \n23,032.00 \n \n150,482.59 540,788.85 \n \n150,482.59 540,788.85 \n \n$ 89,719,554.79 $ 5,388,339.50 $ 95,107,894.29 \n \nSee notes to the basic financial statements. \n \n- 33- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS(2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nThe acquisition, construction, and equipping \n \nof six new elementary physical education \n \nfacilities, two new middle schools, supply \n \nservices freezer, completion of expansion \n \nprogram at five schools, roof replacement \n \non 24 buildings, technology power upgrade \n \non 30 buildings, ceilings and lights in 27 \n \nbuildings, HVAC upgrades on 24 buildings, \n \nfour new high school field houses, three \n \nsupport facilities for new elementary schools, \n \nrenovation of McIntosh Teacher Academy, \n \nrenovation of five schools, Highland \n \nconversion, underslab plumbing replacement \n \nin 17 buildings, asbestos removal at 48 sites, \n \nlawn revitalization at 30 sites, facilities \n \ndepartment shops, tower, media service \n \ncenter, security lighting at 28 sites, sports \n \nfield lighting at four sites and 41 new vehicles, \n \nincluding the acquisition of all necessary \n \nproperty, the maximum cost of such projects \n \nnot to exceed $88,653,060.00. \n \n$ 88,653,060.00 $ 113,707,711.69 $ 1,333,000.69 $ 112,374,711.00 Ongoing \n \nThe acquisition, construction and equipping of three elementary schools, renovation and improvements of one middle school, renovation and improvements of four high schools, renovation and improvements of five elementary schools, provision of gifted, special education, and alternative education sites, capital funding necessary for compliance with Individuals with Disabilities Education Act (IDEA) for children with disabilities, renovation of existing school buildings, four Pre-K facilities in each of four quadrants in the Dougherty County School System, additional technology (hardware and software), including teacher and student classroom computers, peripheral devices and wiring, mobile wireless computer labs, accessory support technology, wireless connectivity for portable classrooms and technology associates with distance and foreign language labs, safety equipment including, but not limited to, upgrading locks on all school buildings, installation of cameras and other devices on schools and school buses, and security/attendance card system, upgrade of school vehicles and maintenance equipment, funding certain financing and project management cost for implementation of capital programs funded through SPLOST 11, the maximum cost of such projects not to exceed $95,000,000.00. \n \n95,000,000.00 \n \n95,000,000.00 \n \n22,939,146.70 \n \n66,194,615.00 Ongoing \n \n$ 183,653,060.00 $ 208,707,711.69 $ 24,272,147.39 $ 178,569,326.00 \n \n-34- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 5,882,921.00 \n \nCurrent Year Total \n \n317,325.00 \n$ ==s..,2=0.0..2=4=6=.o.o.. \n \nSee notes to the basic financial statements. \n \n-35- \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages {ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n6,663,749.00 $ 6,655,269.74 $ \n \n50,527.52 $ 6,705,797.26 \n \n384,832.00 \n \n187,458.90 \n \n1,655.44 \n \n189,114.34 \n \n15,058,577.00 \n \n15,194,814.02 \n \n279,363.79 \n \n15,474,177.81 \n \n1,102,880.00 \n \n918,475.22 \n \n10,091.59 \n \n928,566.81 \n \n7,041,638.00 \n \n7,872,991.77 \n \n339,418.57 \n \n8,212,410.34 \n \n642,171.00 1,807,436.00 9,789,612.00 9,153,137.00 2,168,057.00 8,513,502.00 \n1,515,639.00 307,202.00 858,640.00 52 708.00 \n \n525,523.57 2,319,833.46 11,495,369.92 12,400,881.87 2,319,367.03 \n258,329.66 3,702,925.71 4,737,739.39 \n283,629.10 1,108,624.30 \n1,022,397.98 109,172.86 \n \n5,280.38 70,574.96 281,510.65 432,415.74 220,685.84 \n2,906.94 35,985.52 54,649.73 37,518.47 22,500.36 \n \n530,803.95 2,390,408.42 11,776,880.57 12,833,297.61 2,540,052.87 \n261,236.60 3,738,911.23 4,792,389.12 \n321,147.57 1,131,124.66 \n \n134,468.34 246.97 \n \n1,156,866.32 109 419.83 \n \n$ \n \n65,059,780.00 $ 71,112,804.50 $ 1,979,800.81 $ 73,092,605.31 \n \n1,946,433.00 346 786.00 \n \n2,559,752.20 \n \n226,367.48 359,773.06 \n \n2,786,119.68 359,773.06 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n67,352,999.00 $ 73,672,556.70 $ 2,565,941.35 $ 76,238,498.05 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 37 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 22, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Dougherty County Board ofEducation as of and for the year ended June 30, 2007, which collectively comprise Dougherty County Board of Education's basic financial statements and have issued our report thereon dated September 22, 2008. Our report was modified to include a reference to other auditors. 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. Other auditors audited the financial statements ofthe Dougherty County Board of Education's discretely presented component unit, as described in our report on the Dougherty County Board of Education's financial statements. This report does not include the results of other auditor's testing of internal controls over financial reporting or compliance and other matters that are reported on separately by those auditors. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we and other auditors considered Dougherty County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Dougherty County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dougherty County Board of Education's internal control over financial reporting. \n2007YB-30X \n \n Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency. \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 Dougherty County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe Dougherty County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Dougherty County Board of Education's internal control. We consider item FS-6471-07-01 in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Dougherty County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that the significant deficiency described above is not a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our and other auditor's tests disclosed no instances ofnoncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Dougherty County Board of Education in a separate letter dated September 22, 2008. \nDougherty County Board of Education's response to the finding identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Dougherty County Board of Education's response and, accordingly, we express no opinion on it. \n2007YB-30X \n \n This report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~OJ,,~ \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2007YB-30X \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 22, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. Dougherty County Board of Education's major Federal programs are identified in the Summary of Auditor'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 ofDougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dougherty County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2007SA-10 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dougherty County Board of Education's compliance with those requirements. \nIn our opinion, the Dougherty County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2007. \nInternal Control Over Compliance \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe Dougherty County Board of Education's internal control over compliance. \nA control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \n2007SA-10 \n \n This report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~n~~~ State Auditor \nRWH:as 2007SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-6471-05-01 Further Action Not Warranted \n \nFS-6471-05-02 Further Action Not Warranted \n \nFS-6471-06-01 Further Action Not Warranted \n \n(1) \n \nFS-6471-06-02 Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-06-02 \n \nThe number ofstaffavailable for assignment ofaccounting functions is limited in the schools. The School District's internal auditor will continue to work with the available staff in each school to develop compensating controls. \n \nAUDITOR'S COMMENTS \n \n(1) Findings/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter in subsequent periods. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-03-01 Previously Reported Corrective Action Implemented FA-6471-03-02 Previously Reported Corrective Action Implemented FA-6471-06-01 Unresolved - See Corrective Action/Responses \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES ACTIVITIES ALLOWED OR UNALLOWED Inadequate Internal Control Procedures U.S. Department of Education Through Georgia Department of Education Amount: $22,396.00 Finding Control Number: FA-6471-06-01 The School District expended more than $1 million in local funds for students with disabilities. Any of these expenditures could have been earmarked for the $22,396.00 Hurricane Education Recovery Act funds. The School District will provide this information to Georgia Department of Education upon their request. \n-2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Dougherty County Board of Education disclosed a financial statement significant deficiency related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nThe significant deficiency described above is not considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Dougherty County Board of Education did not disclose any significant deficiencies in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Dougherty County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $708,962.34. \n \n9. Low Risk Auditee The Dougherty County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6471-07-01 \n \nCondition: \n \nThis is a repeat finding (FS-6471-06-02, FS-6471-05-02, FS-6471-04-02, FS6471-03-02, and FS-6471-02-02) from the years ended June 30, 2006, June 30, 2005, June 30, 2004, June 30, 2003, and June 30, 2002, respectively. The accounting procedures ofthe School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions.  Based on a review often monthly bank reconciliations, the following deficiencies were noted: 1) Three bank reconciliations had no evidence of supervisory approval, and 2) three bank reconciliations were not approved in a timely manner. \n \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Based on a review of fifty items, the following deficiencies were noted: 1) Thirteen receipts were not adequately documented, 2) one receipt was written out of order, 3) twenty-one receipts were not deposited timely, and 4) fourteen receipts did not have enough information to trace to recording on general ledger. \n \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6471-07-01 \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Based on a review of fifty items, the following deficiencies were noted: 1) Four expenditures were not adequately documented, 2) twenty expenditures did not have enough information to trace to general ledger, 3) three expenditures were charged to the incorrect expenditure function, 4) one expenditure was for travel, which should go through the School District's central office accounting records, and 5) twenty-one vouchers had no evidence of prior supervisory approval. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \n \nEffect: \n \nErrors and/or fraud may occur and not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. Additionally, management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \n-3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-4 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2007 \nFinding Control Number: FS-6471-07-01 \nThe number ofstaff available for assignment ofaccounting functions is limited in the schools. The School District's internal auditor will continue to work with the available staff in each school to develop compensating controls. \nContact Person: Robert Lloyd, Executive Director of Finance Phone: (229) 431-1234 Fax: (229) 438-3521 E-mail: robert.11oyd@dougherty.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2005-h2006","title":"Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"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: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n31 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n32 \n \n3 SCHEDULE OF STATE REVENUE \n \n34 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n36 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n39 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 858-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 14, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dougherty County Board ofEducation, as of and for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility ofthe Dougherty County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Dougherty County Board of Education's discretely presented component unit. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion insofar as it relates to the amounts included for Dougherty County Stadium Authority is based on the report of the other auditors. \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 and the report ofother auditors provide a reasonable basis for our opinions. \n \n2006ARL-11X \n \n In our opinion, based on our audit and the report ofother auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Dougherty County Board of Education, as of June 30, 2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nAs discussed in Note 2 to the basic financial statements, during the fiscal year 2006, the Dougherty County Stadium Authority properly recorded certain capital assets and associated depreciation expense. \nIn accordance with Government Auditing Standards, we have also issued our report dated May 14, 2007, on our consideration of the Dougherty County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through xii and page 31 respectively, are not a required part ofthe basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We and other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dougherty County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied by us and other auditors in the audit ofthe basic financial statements, and in our opinion based on our audit and the report of other auditors, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \n2006ARL-11X \n \n A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nRWH:gp 2006ARL-11X \n \n~W-~ Russell W. Hinton, CPA, CGFM State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2006. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nFinancial Highlights \nFinancial highlights for fiscal year 2006, are as follows: \n Total net assets increased by $17.3 million. This represents a 9.53 percent increase from fiscal year 2005. This increase was due entirely to governmental activities since the School District has no business-type activities. \n Net capital assets increased by $31.1 million. This was due to the construction of new schools, renovations of facilities for instructional improvement, the purchases of new equipment, and upgrades for technology and security. These capital improvements were primarily funded by a 1.0 percent special purpose local sales tax approved by the voters of Dougherty County. \n Total revenues were $173.0 million. General revenues, which include revenues from the General Fund, Capital Project Fund, and the Debt Service Fund, accounted for $66.9 million, or 38.7 percent of this total. Program revenues, in the form of Charges for Services, Operating Grants and Contributions, and Capital Grants and Contributions accounted for $106.1 million or 61.3 percent of the total. \n The School District incurred $155.7 million in expenses related to governmental activities; however, $106.1 million of these expenses were offset by revenues from program specific Charges for Services, Operating Grants and Contributions, and Capital Grants and Contributions as referenced above. General revenues (primarily taxes) of $66.9 million funded the balance of the remaining $49.6 million of expenses, and the increase in net assets of $17.3 million referenced above. \n Among major funds, the General Fund reported a $0.05 million increase in fund balance which is a reversal of the decrease in fund balance reported for the General Fund in fiscal year 2005. \n Long-Term Debt was reduced by $8.6 million. $8.0 million of this reduction was due to the retirement of debt for General Obligation Bonds, and $0.4 million was due to the retirement of debt for Capital Leases. \nUsing the Basic Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nThese financial statements generally present the School District's most significant funds both separately and with all funds combined. For the Dougherty County School District, the General Fund is by far the most significant fund. A brief discussion of these statements is presented below. \nDistrict-wide Statements \nThe Statement of Net Assets and Statement of Activities provide information about the School District as a whole using accounting methods similar to industry. The increases and decreases in the School District's net assets are an indicator of whether the School District's financial position is improving or deteriorating. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the District-wide Statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenses are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, Federal and State grants, building programs, debt payments, worker's compensation claims, and student activity funds claims. \nMajor Fund Types \nGovernmental Funds: Most of the School District's financial activities are reported in governmental funds. These funds record how money flows into and out of these funds in the current period, and the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a detailed short-term view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational \n11 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nprograms. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. The School District's governmental funds are the General Fund, Capital Projects Fund, and Debt Service Fund. General operations, the child nutrition program, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are included in the General Fund. Fiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The School District excludes these fund activities from the District-wide financial statements because these fund assets cannot be used to finance operations. Presentation of Financial Data The next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2005 and fiscal year 2006. Statement of Net Assets As previously mentioned, the Statement ofNet Assets presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2005 and fiscal year 2006. \nlll \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nTable 1 Net Assets (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear2006 \n \nYear2005 \n \nIncrease/ Decrease \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 38,328 193.936 \n \n$ 59,896 $ -21,568 \n \n161.183 \n \n32.753 \n \nTotal Assets \n \n$ 232.264 \n \n$ 221.079 $ 11.185 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 21,558 11.853 \n \n$ 19,114 $ 2,444 \n \n20.412 \n \n-8.559 \n \nTotal Liabilities \n \n$ 33.411 \n \n$ 39.526 $ -6.115 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted (Deficit) \n \n$ 183,772 17,725 -2.644 \n \n$ 152,692 32,229 -3.368 \n \n$ 31,080 -14,504 724 \n \nTotal Net Assets \n \n$ 198.853 \n \n$ 181.553 $ 17.300 \n \nTotal Assets for fiscal year 2006 increased by $11.2 million. The decrease in current and other assets of $21.6 million was offset by an increase in Capital Assets of $32.8 million. This increase in capital assets is the result of an ongoing capital improvements program which includes renovations for instructional improvement at numerous facilities, as well as new construction projects. Also included are capital expenditures for upgrades in technology, security, and access School Districts to improve safety for schools and other facilities. \n \nCurrent Liabilities increased $2.4 million. Included is the increase in Retainages Payable for capital projects of $1.7 million, Accounts Payable of $0.5 million, and Salaries Payable of $0.3 million. Bond debt payments and capital leases payments made during the year reduced LongTerm Liabilities $8.5 million. \n \nTotal Net Assets increased $17.3 million in fiscal year 2006, as shown in Table 1. Capital Assets, Net of Related Debt, increased by $31.1 million. \n \nRestricted assets decreased by $14.5 million. Restricted assets are assets that must be used for a specific purpose. The total restricted assets of $17.7 million include: funds restricted for bus replacement: $0.4 million; funds restricted for the continuation of Federal programs: $0.1 million; funds restricted for debt service: $16.5 million; and funds restricted for capital projects: $0. 7 million. \n \nlV \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 The deficit reported in fiscal year 2005, for Unrestricted Net Assets - Governmental Activities was reduced $0.7 million in fiscal year 2006. Statement of Activities Table 2 shows the changes in net assets for fiscal year 2005 and fiscal year 2006, as reported on the Statement ofActivities. \nV \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nTable 2 Change in Net Assets \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2006 \n \nYear 2005 \n \nIncrease/ Decrease \n \n$ 1,679 98,068 6.338 \n \n$ 1,691 $ -12 \n \n91,981 \n \n6,087 \n \n260 \n \n6.078 \n \nTotal Program Revenues \n \n$ 106.085 \n \n$ 93.932 $ 12.153 \n \nGeneral Revenues: \n \nTaxes \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$ 35,051 \n \nRailroad Cars \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Debt Services \n \n7,590 \n \nFor Capital Projects \n \n9,899 \n \nIntangible Recording Tax \n \n405 \n \nReal Estate \n \n141 \n \nGrants and Contributions not Restricted \n \nto Specific Programs \n \n9,406 \n \nInvestment Earnings \n \n1,650 \n \nMiscellaneous \n \n2,754 \n \nSpecial Items \n \nLoss on Sale of Building \n \nLoss on Sale of Land \n \n$ 34,183 $ 868 \n \n41 \n \n-41 \n \n16,355 \n368 120 \n7,391 1,329 2,776 \n-127 -74 \n \n-8,765 9,899 \n37 21 \n2,015 321 -22 \n127 74 \n \nTotal General Revenues and Special Items \n \n$ 66.896 \n \n$ 62.362 $ 4.534 \n \nTotal Revenues \n \n$ 172.981 \n \n$ 156.294 $ 16.687 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General and School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central and Other Support Services Operations ofNon-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 97,090 \n4,920 5,805 3,212 10,541 1,944 12,099 5,920 3,803 \n515 545 8,862 425 \n \n$ 91,719 $ \n4,543 5,316 3,125 10,083 2,040 11,361 5,842 3,098 \n238 978 9,349 ---=60=6 \n \n5,371 \n377 489 \n87 458 -96 738 \n78 705 \n277 -433 -487 -181 \n \nTotal Expenses \n \n$ 155.681 \n \n$ 148.298 $ 7.383 \n \nIncrease in Net Assets \n \n$ 17.300 \n \n$ 7.996 $ 9.304 \n \nVI \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nRevenues from additional Grants and Contributions increased in fiscal year 2006. Grants received from Federal and State sources were used to fund various instructional programs and staff development costs. State capital grants were used to partially fund the renovation of an elementary and a high school and to build a new building for a middle school. Approximately 84.4 percent of the increase in total program expenditures is attributed to expenditures for instruction, pupil services, and improvement of instructional services activities. \n \nGovernmental Activities \n \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for both fiscal year 2005 and fiscal year 2006. This information is presented on the Statement of Activities. \n \nFor fiscal year 2006, Instructional activities comprised 62.36 percent of the total governmental program cost of services. Support Services comprised 30.98 percent, Non-Instructional services comprised 6.38 percent, and Interest Expense comprised 0.28 percent. \n \nTable 3 Governmental Activities \n(in Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2006 Year 2005 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2006 Year 2005 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 97,090 $ 91,719 $ 22,918 $ 23,552 \n \n4,920 5,805 3,212 1,753 8,788 1,944 12,099 5,920 3,094 \n709 \n \n4,543 5,316 3,125 1,751 8,332 2,040 11,361 5,842 2,435 \n663 \n \n2,880 1,908 1,202 -589 4,962 1,731 7,190 3,656 2,807 \n573 \n \n3,053 2,338 1,582 -422 4,973 2,040 6,921 3,821 2,436 \n532 \n \n515 545 8,862 425 \n \n238 978 9,349 606 \n \n477 545 -1,088 425 \n \n238 978 1,719 606 \n \nTotal Expenses \n \n$ 155.681 $ 148.298 $ 49,597 $ 54,367 \n \nAlthough program revenues make up a majority of the revenues, the School District is still dependent upon tax revenues for governmental activities. Over 23.6 percent of instructional activities are supported through taxes and other general revenues. For all governmental activities, general revenue support is 31.9 percent. \n \nVll \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nInstruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local School District. \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. \nBusiness Administration includes the financial and warehouse operations of the School District. \nMaintenance and Operation ofPlant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. \nStudent Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by State law. \nCentral and Other Support Services include all other support services including personnel services, management information services, and public relations services. \nEnterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. \nCommunity Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. \nThe School District's Funds \nAs reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances, total governmental funds recorded revenues and other financing sources of $173.7 million, and expenditures and other financing uses of $197.8 million. This total excess of expenditures over revenues resulted in a decrease for all of the major funds of $24.1 million. \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nThe General Fund's fund balance increased $46,992 in fiscal year 2006. This is favorable to the decrease in fund balance reported for fiscal year 2005. This increase can be attributed, in part, to revenues in excess of expenditures of more than $1.0 million reported by the Child Nutrition Program. This is reflective of the operational changes implemented to eliminate the deficit balance reported for the Child Nutrition Program at the end of fiscal year 2004. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. During fiscal year 2006, the School District amended its general fund budget as needed. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. \nFor the General Fund, the final budgeted revenues and other financing sources of $147.5 million exceeded the original budgeted amount of $140.7 million by $6.8 million. This difference was primarily due to an increase in budgeted Federal revenues of $4.6 million, an increase in budgeted state revenues of $1.9 million, and an increase in miscellaneous revenues of $0.3 million. Actual revenues of $148.7 million were $1.2 million greater than the final budgeted amount. \nThe final budgeted expenditures and other financing uses of$147.5 million exceeded the original budgeted amount of $140.7 million by $6.8 million. This difference was primarily due to an increase in budgeted Instructional expenditures of $5.0 million, an increase in budgeted Support Services expenditures of $1.4 million, and an increase in Food Service Operations of $0.4 million. The increases in budgeted Instructional and Support Services expenditures were funded primarily by the $6.5 million in additional State and Federal revenues referenced above. \nActual expenditures and other financing uses of $148.6 million were $1.1 million greater than the final budgeted expenditures. This is due to the difference in the accounting for teacher salaries and benefits. Teachers' contracted pay includes the twelve month period from September, 2005, through August, 2006. Budgeted teacher salaries and benefits were based on the twelve month period from July, 2005, through June, 2006. Actual expenditures include teachers' salaries and benefits paid during the period September 2005, through June 2006, and an estimate of what will be paid in July and August 2006. Teachers' salaries for July and August 2006, are greater than their July and August 2005, salaries because of raises and cost of living increases. Also, actual expenditures include the increase in State Health benefits that became effective July, 2006. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets At the end of fiscal year 2006, the School District had $193 .9 million invested in capital assets. All of these assets were in governmental activities. Table 4 shows fiscal year 2005 and fiscal year 2006 balances. \nIX \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nTable 4 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2006 \n \nYear 2005 \n \nIncrease/ Decrease \n \nLand Construction in Progress Buildings and Building Improvements Equipment \n \n$ 9,020 52,669 127,708 4,539 \n \n$ 9,274 28,540 118,378 4,992 \n \n$ -254 24,129 9,330 -453 \n \nTotal Assets \n \n$ 123,936 \n \n$ Hil,184 $ 32,752 \n \nCapital Assets increased by $32.8 million versus fiscal year 2005, as shown in Table 4. The increase in Construction in Progress and Buildings and Building Improvements for fiscal year 2006 accounts for the costs associated with the construction of three new elementary schools, one new middle school, and a \"Center of Excellence\" at one of the high schools. All of these new facilities were opened in August 2006 for the fiscal year 2007 school year. The School District will also open a new elementary school in August, 2007. In addition to the projects listed above, there was also significant spending for renovations at other facilities, and upgrades in technology, security, and access School Districts, which have improved safety and security for schools and other facilities. Virtually all of the funding for these projects was provided by a 1.0 percent sales tax approved by the voters of Dougherty County {STEP - \"Sales Tax for Educational Progress\"). \n \nDebt \n \nTable 5 summarizes the long-term debt outstanding at June 30 for fiscal year 2005, and fiscal year 2006. \n \nTable S Debt at June 30 (In Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2006 \n \nYear 2005 \n \nIncrease/ Decrease \n \nGeneral Obligation Bonds Unamortized Bond Premium Compensated Absences Capital Leases Claims Payable - Workers' Compensation \n \n$ 9,355 368 \n1,148 700 282 \n \n$ 17,310 $ -7,955 \n \n590 \n \n-222 \n \n1,263 \n \n-115 \n \n1,082 \n \n-382 \n \n167 \n \n115 \n \nTotal \n \n$ 11,853 \n \n$ 20,412 $ -8,552 \n \nX \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nThe General Obligation Bonds debt shown in Table 5 reflects a balance due of $9.3 million for a 2004 General Obligation Bond issuance, plus $0.4 million in unamortized bond premiums. \nThe $1.1 million debt for Compensated Absences is the School District's estimated financial obligation for future payments to employees for vacation leave. \nThe $0.7 million for Capital Leases shown above is primarily due to the lease purchase of 23 buses to upgrade the school bus fleet. \nThe Dougherty County School District is self insured for Workers' Compensation claims. The Claims Payable for Workers' Compensation of $0.3 million shown above represents estimated liability for existing claims at June 30, 2006. \nCurrent Issues \nIn March, 2007, the voters of Dougherty County approved a continuation of the 1.0 percent sales tax (Sales Tax for Educational Progress), and the issuance of general obligation bonds in the maximum principal amount of $40.0 million. These sales tax revenues could provide up to $95.0 million over the next five years to be used for capital improvements and equipment. The bulk of these funds will be used for renovations for instructional improvement. Projects include: a \"Center of Excellence\" at all high schools as well as renovations and additions at several other schools. \nFunding is also provided for \"Technology in the Classroom\" which includes a five year rotation for all District-wide computers, conversion of existing modified model classrooms to model classrooms, and the addition of three model classrooms per school. Funds are also included for a continuation of safety and access control School Districts at fifteen schools and various other facilities, and replacement of carpeting and gym flooring. Also included are funding for vehicle replacement (including buses and departmental vehicles) and musical instruments and other academic/instruction related equipment. \nThe Dougherty County Tax Department recently completed a revaluation of all real property in Dougherty County. It is anticipated this revaluation will provide a substantial increase in the tax digest and thus potentially provide additional funding for school operations. For the past several years, there has been virtually no growth in the local digest, and, in fact, the 2006 digest was \n1.87 percent lower than the 2002 digest. This lack of growth in the tax digest, as well as \nreductions in the State allotment has put a strain on the Dougherty County School District's operating budget. The fiscal year 2006 state QBE allotment included an \"austerity reduction\" of $3.74 million. Since fiscal year 2003, the Dougherty County School District has lost a cumulative total of $14.0 million in State funding due to \"austerity reductions\". The State did; however, provide some funding relief for fiscal year 2007. The \"austerity reduction\" was reduced from $3.74 million in fiscal year 2006, to $1.77 million in fiscal year 2007, a reduction (increase in funding) of $1.97 million. \nXI \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \n \nContacting the School District's Financial Management \n \nThis management's discussion and analysis report is designed to provide our citizens, taxpayers, \n \ninvestors, and creditors with a general overview of the School District's finances, and to \n \ndocument the School District's accountability for the money it receives. If you have questions \n \nabout this report or need additional financial information, contact Robert Lloyd, Executive \n \nDirector of Business and Operations, at the Dougherty County School District, 200 Pine Avenue, \n \nAlbany, Georgia 31702. \n \nYou may also email your questions to \n \nrobert.lloyd@dougherty.kl2.ga.us. \n \nXU \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2006 \n \nEXHIBIT\"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Inventories Capital Assets Land Construction in Progress Buildings Equipment Stadium Improvements Less: Accumulated Depreciation \n \nPRIMARY GOVERNMENT GOVERNMENTAL \nACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n$ \n \n20,560,261 \n \n4,341,847 10,056,792 2,472,284 \n379,603 142,345 374,804 \n \n9,020,229 52,668,506 210,220,138 14,670,814 \n \n-92,643,911 \n \n193,825 \n25,000 \n410,000 308,976 234,936 2,586,683 -242 986 \n \nTotal Assets \n \n$ \n \n232,263,712 $ -===-===-=======3-51..6.=4=3===4 \n \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted Governmental Activities (Deficit) Dougherty County Stadium Authority \nTotal Net Assets \n \n$ \n \n2,208,693 \n \n3,763,486 $ \n \n11,563,835 \n \n581,712 \n \n3,433,792 \n \n6,219 \n \n9,030,832 2,822,089 \n \n$ \n \n33,410,658 $ \n \n$ \n \n183,772,191 $ \n \n444,326 128,295 16,509,103 843,682 \n \n-2,644,543 \n \n$ \n \n198,853,054 $ \n \n39,395 \n39395 3,297,609 \n179430 3477 039 \n \nTotal Liabilities and Net Assets \n \n$ \n \n232,263,712 $ -======-=-=3=5=16====43=4= \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2006 \n \nPRIMARY GOVERNMENT \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities - Primary Government \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year (Restated) \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n97,090,391 $ \n \n4,920,171 5,804,936 3,211,729 1,752,959 8,787,733 1,943,788 12,098,900 5,920,573 3,094,506 \n709,036 \n \n514,606 545,257 8,861,714 424 769 \n$ _ _ 1_55_,68_1,068 $ \n \n495,206 \n1,183,481 1,678,687 \n \n$ \n \n221,s22 $ _____1_0.0..,._o__o__o_ \n \nNet Assets - End of Year \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET(EXPENSES)REVENUES \n \nAND CHANGES IN NET ASSETS \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL DOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \n$ \n \n69,327,706 $ \n \n2,029,529 3,838,215 1,771,565 2,341,748 3,612,999 \n39,289 4,706,651 1,989,498 \n244,106 136,237 \n \n8,029,726 \n \n$ \n \n98,067,269 $ \n \n4,349,597 $ \n10,249 58,990 238,157 \n212,494 173,552 202,113 275,273 43,465 \n37,850 \n736,541 \n6,338,281 $ \n \n-22,917,882 \n-2,880,393 -1,907,731 -1,202,007 \n588,789 -4,962,240 -1,730,947 -7,190,136 -3,655,802 -2,806,935 \n-572,799 \n-476,756 -545,257 1,088,034 -424 769 \n-49,596,831 \n \n$ _ _ _ _ _-_12_1.._8_22_ \n \n$ \n \n35,051,391 \n \n7,589,917 9,898,756 \n405,198 141,133 9,405,727 1,650,286 $ 2,753,866 \n \n$ \n \n66,896,274 $ \n \n$ \n \n17,299,443 $ \n \n181,553,611 \n \n5,348 4634 9,982 \n-111,840 \n3,588,879 \n \n$ \n \n198,853,054 $ ========3=,4=77===03=9= \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2006 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Due From Other Funds Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ $ 2,543,507 \n \n13,894 $ \n \n1,511 $ \n \n15,405 \n \n628,231 \n \n17,388,523 \n \n20,560,261 \n \n842,611 10,056,792 2,472,284 \n378,045 142,345 \n374 804 \n \n1,558 4,015,503 \n \n3,134,572 \n \n3,977,183 10,056,792 2,472,284 \n379,603 142,345 4,015,503 374 804 \n \n$ 16,810,388 $ 4,659, 18.6 $ 20,524,606 $ 41,994,180 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Claims Payable Contracts Payable Retainages Payable Due To Other Funds Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Debt Service Inventories Capital Projects \nUnreserved Designated for Self-Insurance Undesignated Reported in: General Fund (Deficit) \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ 2,224,098 3,763,486 \n11,563,835 282,293 $ \n6 219 \n$ 17 839 931 $ \n \n581,712 3,433,792 \n$ \n4,015,504 $ \n \n$ 4,015,503 \n \n2,224,098 3,763,486 11,563,835 \n282,293 581,712 3,433,792 4,015,503 \n6 219 \n \n4,015,503 $ 25,870,938 \n \n$ \n \n444,326 \n \n374,804 $ \n \n1,353,679 \n \n-3,202,352 \n \n$ -1,029,543 $ \n \n$ 643,682 \n \n$ 16,509,103 \n \n444,326 16,509,103 \n374,804 643,682 \n \n1,353,679 \n \n-3,202,352 \n \n643 682 $ 16,509,103 $ 16,123,242 \n \n$ 16,810,388 $ 4,659,186 $ 20,524,606 $ 41,994,180 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases Compensated Absences Unamortized Bond Premiums \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 16,123,242 \n \n$ \n \n9,020,229 \n \n52,668,506 \n \n210,220,138 \n \n14,670,814 \n \n-92,643,911 \n \n193,935,776 \n \n364,664 \n \n$ \n \n-9,355,000 \n \n-699,584 \n \n-1, 147,970 \n \n-368 074 \n \n-11,570,628 \n \n$ 198,853,054 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 34,961,227 546,331 $ \n82,099,236 25,804,384 \n1,678,687 449,263 \n3137010 \n$ 148,676,138 $ \n \n9,898,756 $ 6,063,008 \n440,179 \n16 401 943 $ \n \n$ 7,589,917 \n760,844 \n \n34,961,227 18,035,004 88,162,244 25,804,384 \n1,678,687 1,650,286 3,137,010 \n \n8,350,761 $ 173,428,842 \n \n$ 92,927,823 \n \n4,925,011 5,768,433 2,970,039 1,759,381 8,614,454 1,755,658 $ 11,640,868 4,644,055 3,073,756 \n709,036 472,362 547,009 8,120,493 \n \n38,914 259,343 \n40,280,568 \n \n382,668 \n \n$ \n \n22,588 \n \n$ 148,333,634 $ 40,578,825 $ \n \n$ \n \n342 504 $ -24, 176,882 $ \n \n$ 92,927,823 \n \n4,925,011 5,768,433 2,970,039 1,759,381 8,614,454 1,794,572 11,900,211 4,644,055 3,073,756 \n709,036 472,362 547,009 8,120,493 40,280,568 \n \n7,955,000 623 025 \n \n8,337,668 645 613 \n \n8,578,025 $ 197 490 484 \n \n-227 264 $ -24,061,642 \n \n$ \n \n$ \n \n-295,512 \n \n295,512 \n \n$ \n \n295,512 \n \n-295,512 \n \n$ \n \n-295,512 $ \n \n295,512 \n \n$ \n \n0 \n \n$ \n \n46,992 $ -23,881,370 $ \n \n-227,264 $ -24,061,642 \n \n-1 076 535 \n \n24,525,052 \n \n16,736,367 \n \n40,184,884 \n \nFund Balances - Ending \n \n$ -1,029,543 $ \n \n643 682 $ 16,509,103 $ ==1=6=,1=2=3,=24=2= \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the gain on the sale of the land and equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the land or carrying value of the equipment sold. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nAmortized Bond Premium Bond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nDecrease in Compensated Absences \n \n$ -24,061,642 \n \n$ 37,142,193 -4,006,750 \n \n33,135,443 -65, 187 \n \n-383,144 \n \n$ \n \n220,844 \n \n7,955,000 \n \n382,668 \n \n8,558,512 \n \n115 461 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 17,299.443 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS \nJUNE 30, 2006 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nOther \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \n \nAGENCY FUNDS \n \n$ \n \n14,225 \n \n39,395 \n \n$==5=3=,6=20= \n \n$===5=3===,6=20= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with the Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 17 for additional component unit disclosures. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dougherty County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nRESTATEMENT OF PRIOR YEAR NET ASSETS \nFor fiscal year 2006, the Dougherty County Stadium Authority restated various capital assets due to errors and omissions made in prior years. In 2006, the Authority increased land by $410,000 and decreased stadium improvements by $400,000. Additionally, the Authority decreased accumulated depreciation of stadium improvements, equipment, and buildings, by $2,821,131, $176,374, and $297,389, respectively. The result is an increase in Net Assets at July 1, 2005 of$3,304,894. This change is in accordance with generally accepted accounting principles. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \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. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe Dougherty County Board ofCommissioners fixed the property tax levy for the 2005 tax digest year (calendar year) on August 15, 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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1 % of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2006, for maintenance and operations amounted to $34,961,227. \n \nThe tax millage rate levied for the 2005 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n19.0 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $17,488,673 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCONSUMABLE SUPPLIES On the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for the consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2006, are recorded as prepaid items. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Buildings and Improvements Equipment \n \nAny Amount \n \n$ \n \n5,000 \n \n$ \n \n5,000 \n \nNIA 20 to 80 years \n4 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement ofNet Assets. \n \nDEFICIT FUND BALANCES \n \nFunds reporting a deficit fund balance at June 30, 2006, are as follows: \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGovernmental Fund Type General Fund - Regular School Food Services Fund \n \n$ 1,211,722 $ 2,892,209 \n \nAs of the end of fiscal year 2007, the System expects to fully eliminate the deficit in the general operating fund. As of March 2007, the system projects revenues to exceed expenditures by approximately $590,000. This increase in fund balance will exceed the shortage in revenues created by the year-end accruals ofJuly and August salaries and benefits and related revenues. The system will continue to manage its operational expenditures with the goal of building a sufficient fund balance reserve. \n \nIn fiscal year 2005, the School System implemented a plan to eliminate the deficit in the Child Nutrition Program. With guidance from the Georgia Department ofEducation, the Board elected to discontinue the Federal free lunch program. The decision to add the free lunch program to the already existing free breakfast program in fiscal year 2004, resulted in revenue losses far greater than anticipated and proved to be fiscally prohibitive. Operational changes such as the closing of CNS central warehouse operations, realignment ofstaffbased on number ofmeals served, implementation of \"per plate cost\" controls and the updating of meal prices were also achieved in fiscal year 2005, and fiscal year 2006. In fiscal year 2006, meal participation increased with the implementation of a \"breakfast in the classroom\" program. This program was expanded to more schools in fiscal year 2007. Also, during fiscal year 2007, standardized menus were introduced and stafftraining on cost efficient meal preparation and inventory control procedures was provided. For fiscal year 2008, emphasis will continue to be placed on improving the quality of meals served while reducing production costs. \n \nOperational changes implemented during fiscal year 2006, resulted in a deficit reduction of approximately $1.0 million. Another $1.0 million reduction is projected for fiscal year 2007. The projected deficit balance at June 30, 2007, is approximately $1.8 million. The System's goal is to fully eliminate the deficit no later than fiscal year 2011. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum 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 \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nbalance. At June 30, $12,687 ofdeposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2006, the bank balances were $7,136,079. The amounts ofthe total bank balances are classified into four categories of custodial credit risk: \nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \nCategory 4 - Uncollateralized. \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nPRIMARY GOVERNMENT \n \nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \n \nCustodial Credit Risk Category \n1 2 3 4 \nTotal \n \nBank Balance \n$ 503,262 0 \n6,620,130 12,687 \n$ 7,136.079 \n \nCOMPONENT UNIT \n \nAt June 30, 2006, Dougherty County Stadium Authority's bank balances of$193,825 were classified by custodial credit risk category as follows: \n \nCustodial Credit Risk Category \n1 2 3 4 \nTotal \n \nBank Balance \n$ 179,224 0 \n14,601 0 \n \nCATEGORIZATION OF INVESTMENTS Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofa failure ofthe counterparty to a transaction, the School District will not be able to recover the value ofthe investment or collateral securities that are in the possession ofan outside party. The School District does not have a formal policy for managing custodial credit risk. \n \nInvestments are classified as to custodial credit risk by the categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent, but not in the School District's name. \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \nAt June 30, 2006, the carrying value of the School District's total investments was $20,560,261 which is materially the same as fair value. These investments included funds in the amount of $13,901,626 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 of the State of Georgia, 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. A description of the Primary Liquidity Portfolio is as follows: \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. \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. \nFunds invested in U.S. Treasury Money Market Mutual Funds in the amount of$6,658,635 (openend mutual funds) are not required to be classified by categories of custodial credit risk. \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value ofan investment. The School District does not have a formal policy for managing interest rate risk. \nAt June 30, 2006, the School District's investment consisted of U. S. Treasury Money Market Mutual Funds (open-end mutual funds) which had an investment maturity of less than one year. \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe U. S. Treasury Money Market Mutual Funds have an unrated credit quality rating. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nPRIMARY GOVERNMENT \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Buildings and Improvements Equipment \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances July 1, 2005 \n \nIncreases \n \nBalances Decreases June 30, 2006 \n \n$ 9,274,209 $ \n \n59,000 $ 312,980 $ 9,020,229 \n \n28,539,861 35,356,702 11,228,057 52,668,506 \n \n$ 37,814,070 $ 35,415,702 $ 11,541,037 $ 61,688,735 \n \n$ 198,024,323 $ 12,195,815 \n \n14,214,205 \n \n758,733 $ \n \n$ 210,220,138 302,124 14,670,814 \n \n79,647,417 9,221,704 \n \n2,864,908 1,141,842 \n \n231,960 \n \n82,512,325 10,131,586 \n \n$ 123,369,407 $ 8,947,798 $ \n \n70,164 $ 132,247,041 \n \n$ Hil 118314Z:Z $ 44.363,500 $ 11,611,201 $ 123,235/216 \n \nCapital assets being acquired under capital leases as of June 30, 2006, are as follows: \n \nEquipment Less: Accumulated Depreciation \n \nGovernmental Funds \n$ 1,621,022 331,591 \n$ 1,289,431 \n \n- 20- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Enterprise Operations Food Services \n \n$ 2,375,355 \n \n$ \n \n5,597 \n \n32,215 \n \n130,060 \n \n116,045 \n \n94,778 \n \n110,376 \n \n695,686 \n \n23.737 \n \n1,208,494 20,670 \n402.231 \n \n$ 4,006,750 \n \nCOMPONENT UNIT \n \nCapital Assets, Not Being Depreciated: Land \nCapital Assets Being Depreciated Building Equipment Stadium Improvements \nLess Accumulated Depreciation for: Building Equipment Stadium Improvements \nTotal Capital Assets, Being Depreciated, Net \nComponent Unit Activity Capital Assets - Net \nNote 6: RESTRICTED ASSETS \n \nBalances July I, 2005 (Restated} \n \nIncreases \n \nDecreases \n \nBalances June 30, 2006 \n \n$ \n \n410 000 $ \n \n0 $ \n \n0 $ \n \n410,000 \n \n$ \n \n308,976 \n \n234,936 \n \n2,586,683 \n \n$ \n \n0 $ \n \n308,976 \n \n234,936 \n \n2,586,683 \n \n11,587 $ 35,563 96 362 \n$ 2,987,083 $ \n$ 3.397.083 $ \n \n7,724 25,246 66 504 \n-99 474 $ \n-99.474 $ \n \n0 $ $ \n \nI 9,311 60,809 162,866 \n2,887,609 \n3.297.609 \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2006, were as follows: \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Ca12ital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ \n \n$ \n \n16,223 \n \n1,511 \n \n$ 17,388,523 \n \n$ \n \n4,159 $ 624,072 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2006, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nDistrict-wide Capital Projects Debt Service Fund \n \n$ 4,015,503 $ 4,015,503 \n \n$ 4,015,503 $ 4,015,503 \n \nTransfers are used to move sales tax revenues to provide supplemental funding for capital construction projects. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2006, consisted of the following: \n \nTransfer to \n \nTransfers From General Fund \n \nDistrict-wide Capital Projects \n \n$==2-95=\",5\"==1~2 \n \nTransfers are used to (1) move property tax revenues collected by the General Fund to the Districtwide Capital Projects Fund to fund the deficit in the Capital Projects Fund and (2) cover a portion of employee's salaries not funded as a part of the Special Purpose Local Option Sales Tax (SPLOST) projects. \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 9: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $300,000 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \n2005 2006 \n \nBeginning ofYear Liability \n \nClaims and Changes in Estimates \n \n$ \n \n200,751 $ \n \n759,531 $ \n \n$ \n \n167.424 $ \n \n797,835 $ \n \nClaims Paid \n \nEnd of Year Liability \n \n792,858 $ 682,966 $ \n \n167.424 282,293 \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 9: RISK MANAGEMENT \n \n2005 2006 \n \nBeginning of Year Liabili!Y \n \nClaims and Changes in Estimates \n \n$ \n \n0 $ \n \n50,195 $ \n \n$ \n \n0 $ \n \n35,176 $ \n \nClaims Paid \n \nEndofYear Liabili!Y \n \n50,195 $ \n \n0 \n \n35,176 $ \n \n0 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \nSuperintendent All Other Employees \n \nAmount \n \n$ \n \n50,000 \n \n$ 250,000 \n \nNote 10: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nTax Anticipation Notes \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \n$=======0 $13,000.000 $13,000.000 $=====0 \n \nNote 11: LONG-TERM DEBT \n \nCAPITAL LEASES The Dougherty County Board of Education has entered into various lease agreements as lessee for buses and cars. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date oftheir inception. \n \nCOMPENSATED ABSENCES Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \n- 24- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 11: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2004 \n \n2.0%-4.0% \n \n$ 9,355.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \n \nCapital Leases \n \nGovernmental Funds \n \nGeneral \n \nCompensated \n \nClaims \n \nObligation \n \nAbsences \n \nPayable \n \nBonds \n \nUnamortized Bond \nPremium \n \nTotal \n \nBalance July l, 2005 \n \n$ 1,082,252 $ 1,263,431 $ \n \n167,424 $ 17,310,000 $ \n \n588,918 $ 20,412,025 \n \nAdditions Annual Leave Earned Claims and Changes in Estimates \n \n1,026,675 \n \n797,835 \n \n1,026,675 797,835 \n \nDeductions Annual Leave Utilized Debt Retired Claims Paid Bond Premiums Amortized \n \n382,668 \n \n1,142,136 \n \n682,966 \n \n7,955,000 \n \n220.844 \n \n1,142,136 8,337,668 \n682,966 \n220.844 \n \nBalance June 30, 2006 $ 699.584 $ 1.147.970 $ 282.293 $ 9.355 000 $ 368.074 $ J1,852.92] \n \nPortion of Long-Term Debt Due within One Year $ \n \n391 847 $ \n \n92.01 l $_ _~6=1,=13~0 $ 8,265.000 $ \n \n220,844 $ 9,030.832 \n \nAt June 30, 2006, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2007 2008 \n \n$ 391,847 $ 307.737 \n \n13,409 4,008 \n \nTotal Principal and Interest \n \n$ 699.584 $ \n \n17 417 \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 11: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \nUnamortized Bond \nPremium \n \n2007 2008 \n \n$ 8,265,000 $ 1,090,000 \n \n317,325 $ 24,525 \n \n220,844 147,230 \n \nTotal Principal and Interest $ 9,355.000 $ \n \n341.850 $ 368,074 \n \nNote 12: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $2,962,889 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $2,939,857 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $23,032 \n \nNote 13: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2006, together with funding available: \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 13: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n04-647-026 \n \n$ \n \n83,488 $ 113,428 \n \n06-647-014 \n \n899,844 \n \n503,655 \n \n06-647-015 \n \n36,857 \n \n56,583 \n \n07RA-64 7-008 \n \n13,797,912 \n \n4,714,672 \n \nJackson Heights Elementary \n \n86,741 \n \nLincoln Magnet Elementary \n \n602,361 \n \nSecurity Access and Control System \n \n55,999 \n \nMerry Acres Middle HVAC \n \n124,510 \n \nAlbany Middle HVAC \n \n149,350 \n \nMorningside Elementary HVAC \n \n97,995 \n \nDougherty Middle HVAC \n \n140,330 \n \nMartin Luther King, Jr. Elementary HVAC \n \n60,797 \n \nAlice Coachman HVAC \n \n59,660 \n \nInternational Studies Elementary Magnet HVAC \n \n84,397 \n \nLamar Reese Magnet HVAC \n \n109,297 \n \nWesttown Elementary HVAC \n \n72,309 \n \n$ 16,461.847 $ 5,388,338 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 14: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 15: SUBSEQUENT EVENTS \n \nOn March 20, 2007, the voters of Dougherty County voted in favor of a Special Purpose Local Option Sales Tax ofone percent to be imposed on all sales in Dougherty County for a period oftime not to exceed 20 calendar quarters, beginning upon termination ofthe current such sales and use tax, to raise not more than $95,000,000. The proceeds from the tax are to be used for the benefit ofthe Dougherty County Board of Education as stated in part on the Official Ballot of Dougherty County as follows: \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 15: SUBSEQUENT EVENTS \n\"Shall a special one percent sales and use tax be imposed in Dougherty County for a period of time not to exceed 20 calendar quarters for the raising of not more than $95,000,000 for the purpose of funding (i) the renovation and improvement of four high schools and five elementary schools, strategic land acquisition for future school expansion, certain other capital repairs and modifications in system-wide schools, buildings and offices (including carpet replacement, gym flooring and certain other capital repairs and modifications), (ii) the provision of additional classroom technology (including hardware, software and computer furniture), regular system-wide replacement of computers five years or older, installing six computers in all K-8th grade classrooms and three computers in all 9th - 12th grade classrooms, providing system-wide teacher laptop computers, system-wide \"wireless-connectivity\" in all classroom and other buildings, upgrading existing computer-aided instructional systems to \"Model Classroom\" standards and providing three additional \"Model Classrooms\" per school, providing system-wide upgraded or new servers and upgraded main data frame (MDF) rooms, installing \"voice-over-internet-protocol\" (VoIP) in various classrooms throughout the school system, (iii) the provision of safety and security equipment, including system-wide communication equipment and card-access systems at various system-wide buildings and the installation ofradio signal-boosters (\"radio repeaters\") for West Dougherty Tower, (iv) vehicle and equipment replacement, including school buses and departmental trucks, vans and sedans for system-wide use, major maintenance, supply and service equipment, musical instruments, playground equipment and other educational related equipment, and (v) funding certain financing, project management and election costs related thereto. \nIfthe reimposition ofthe tax is approved by the voters, such votes shall constitute approval of the issuance of general obligation debt of the Dougherty County School District in the principal amount of $40,000,000 for the purpose set forth in the above question, to pay capitalized interest thereto, and to pay expenses incident to accomplishing the foregoing.\" \nNote 16: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 16: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2006 2005 2004 \n \n100% 100% 100% \n \n$ 7,389,992 $ 7,271,599 $ 7,044,211 \n \nNote 17: COMPONENT UNIT \n \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit ofthe School District and is discretely presented in the School District's financial statements. \n \nThe Authority utilizes the modified accrual method ofaccounting. The Authority has implemented the financial reporting requirements ofGASB Statement Nos. 33 and 34. The Authority's fiscal year is July 1 through June 30. \n \n- 29- \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL Pl \n \nFINAL (1l \n \nACTUAL AMOUNTS \n \n$ \n \n34,906,826 $ \n \n34,906,826 $ \n \n34,961,227 \n \n110,000 \n \n110,000 \n \n546,331 \n \n78,945,098 \n \n80,806,363 \n \n82,099,236 \n \n22,712,861 \n \n27,276,703 \n \n25,804,384 \n \n1,981,991 \n \n2,141,912 \n \n1,678,687 \n \n103,340 \n \n104,115 \n \n449,263 \n \n1,430,794 \n \n1,766,800 \n \n3,137,010 \n \n$ \n \n140,190,910 $ \n \n147,112,719 $ 148,676,138 \n \n$ \n \n84,677,114 $ \n \n89,676,797 $ \n \n92,927,823 \n \n4,975,421 6,710,793 3,084,973 2,054,743 7,715,622 1,788,114 11,300,957 4,951,756 1,914,282 \n981,721 336,300 598,776 9,005,758 \n1,000 \n \n5,246,896 7,475,385 3,073,360 2,051,955 7,766,648 1,772,692 11,443,635 4,965,042 2,166,464 \n890,160 449,513 588,971 9,409,522 \n1,000 \n \n4,925,011 5,768,433 2,970,039 1,759,381 8,614,454 1,755,658 11,640,868 4,644,055 3,073,756 \n709,036 472,362 547,009 8,120,493 \n405,256 \n \n$ \n \n140,097,330 $ \n \n146,978,040 $ 148,333,634 \n \n$ \n \n93,580 $ \n \n134,679 $ \n \n342,504 \n \n$ \n \n461,920 $ \n \n387,500 \n \n-555,500 \n \n-555,500 $ \n \n-295,512 \n \n$ \n \n-93 580 $ \n \n-168,000 $ \n \n-295,512 \n \n$ \n \n0 $ \n \n-33,321 $ \n \n46,992 \n \n-3,314,210 \n \n-3,314,210 \n \n-1,076,535 \n \nFund Balances - Ending \n \n$ \n \n-3,314,210 $ \n \n-3,347,531 $ \n \n-1,029,543 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. \n 31  \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Direct Impact Aid Fund for the Improvement of Education Pass-Through From Georgia Department of Education Charter Schools Comprehensive School Reform Demonstration Education for Homeless Children and Youth English Language Acquisition Grants Enhancing Education Through Technology Program Even Start Hurricane Education Recovery Improving Teacher Quality State Grants Mathematics and Science Partnerships Reading First State Grants Safe and Drug-Free Schools and Communities - National Programs Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States Pass-Through From Georgia Department of Human Resources Safe and Drug-Free Schools and Communities \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Education Cooperative Agreements to Support Comprehensive School Health Programs to Prevent the Spread of HIV and Other Important Health Problems \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n. 10.553 . 10.555 \n \nN/A N/A $ \n$ \n \n(2) 7 456167 \n7,456,167 \n \n10.550 \n \nN/A $ \n \n322,226 7,778,393 \n \n84.027 84.173 \n \nNIA $ NIA \n$ \n \n4,047,465 222,613 \n4,270,078 \n \n84.041 84.215 \n84.282 84.332 84.196 84.365 84.318 84.213 \n. 84.938 84.367 84.366 84.357 84.184 84.186 \n. 84.298 84.010 84.048 \n84.186 \n \nNIA NIA N/A NIA N/A N/A NIA N/A N/A N/A N/A NIA N/A N/A N/A \nNIA \n$ \n \n(3) 335,084 \n274,356 375,206 34,625 \n2,327 438,395 180,520 (4) 1,723,271 111,435 1,537,082 \n28,992 154,201 79,538 7,836,164 227,141 \n11 975 \n17,620,370 \n \n93.938 \n \nN/A $ \n \n2400 \n \n- 32- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nLabor, U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Workforce Investment Act Youth Activities Youth Opportunity Grants \nTotal U. S. Department of Labor \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marine Corps R.O.T.C. Program \nTotal U.S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n17.259 17.263 \n \nN/A $ NIA \n \n100,667 41603 \n \n$ _ _ __..;.14..:..:2::.,:2:..:.7~0 \n \n$ \n \n70,654 \n \n92707 \n \n$ _ _ __..;.16;:;..:3:.3;.;:6;..:..1 \n \nTotal Federal Financial Assistance N/A = Not Available \n \n$===2=5=,7=06=,7=94== \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,394,286) were not maintained separately and are included in the 2006 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $155,351, do not require reporting of expenditures. (4) Funds earned on the Hurricane Education Recovery program, in the amount of $258,452, do not require reporting \nof expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 33- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Migrant Education Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Agriculture Construction Related Equipment Health Insurance National Teacher Certification Preschool Handicapped Program Severely Emotionally Disturbed Statewide K-8 Reading and Math Virtual Schools State Grant Vocational Construction Related Equipment \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ \n \n992,430 \n \n$ \n \n5,264,223 462,444 \n12,209,110 893,216 \n5,658,475 471,827 \n1,541,909 7,967,581 7,398,902 1,899,785 \n311,186 2,368,945 3,263,990 \n809,033 520,683 \n18,052 1,087,509 \n210,635 701,889 \n59,028 1,544,666 \n494,868 294,460 \n1,570,509 3,245,274 4,237,040 \n1,697,029 275,273 295,613 54,343 4,325 889,722 \n9,413,301 478,890 146,676 \n-3,736,162 \n258,052 2,939,857 \n21,319 254,537 2,243,655 334,125 \n100 771,314 \n \nTOTAL \n992,430 \n5,264,223 462,444 \n12,209,110 893,216 \n5,658,475 471,827 \n1,541,909 7,967,581 7,398,902 1,899,785 \n311,186 2,368,945 3,263,990 \n809,033 520,683 \n18,052 1,087,509 \n210,635 701,889 \n59,028 1,544,666 \n494,868 294,460 \n1,570,509 3,245,274 4,237,040 \n1,697,029 275,273 295,613 54,343 4,325 889,722 \n9,413,301 478,890 146,676 \n-3,736,162 \n258,052 2,939,857 \n21,319 254,537 2,243,655 334,125 \n100 771,314 \n \n- 34- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of the Governor Georgia Challenge Program \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of Foreign Language Model Program \nHuman Resources, Georgia Department of High School-Based Summer Learning Program \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 6,063,008 $ \n \n6,063,008 \n \n$ \n \n30,000 \n \n30,000 \n \n23,032 \n \n23,032 \n \n166,566 40 000 \n \n166,566 40000 \n \n$ 82,099,236 $ \n \n6,063,008 $=...,...8=8'=16=2=,2..,44= \n \nSee notes to the basic financial statements. \n \n- 35- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nThe acquisition, construction, and equipping of six new elementary physical education facilities, two new middle schools, supply services freezer, completion of expansion program at five schools, roof replacement on 24 buildings, technology power upgrade on 30 buildings, ceilings and lights in 27 buildings, HVAC upgrades on 24 buildings, four new high school field houses, three support facilities for new elementary schools, renovation of McIntosh Teacher Academy, renovation of five schools, Highland conversion, underslab plumbing replacement in 17 buildings, asbestos removal at48 sites, lawn revitalization at 30 sites, facilities department shops, tower, media service center, security lighting at 28 sites, sports field lighting at four sites and 41 new vehicles, including the acquisition of all necessary property, the maximum cost of such projects not to exceed $88,653,060. \n \n$ 88,653,060 $ 112,374,711 $ \n \n1,879,814 $ 110,494,897 $ Ongoing \n \nThe acquisition, construction and equipping of three elementary schools, renovation and improvements of one middle school, renovation and improvements of four high schools, renovation and improvements of five elementary schools, provision of gifted, special education, and alternative education sites, capital funding necessary for compliance with Individuals with Disabilities Education Act (IDEA) for children with disabilities, renovation of existing school buildings, four Pre-K facilities in each of four quadrants in the Dougherty County School System, additional technology (hardware and software), including teacher and student classroom computers, peripheral devices and wiring, mobile wireless computer labs, accessory support technology, wireless connectivity for portable classrooms and technology associates with distance and foreign language labs, safety equipment including, but not limited to, upgrading locks on all school buildings, installation of cameras and other devices on schools and school buses, and security/attendance card system, upgrade of school vehicles and maintenance equipment, funding certain financing and project management cost for implementation of capital programs funded through SPLOST II, the maximum cost of such projects not to exceed $95,000,000. \n \n95,000,000 \n \n95,000,000 \n \n38,608,047 \n \n27,586,568 Ongoing \n \n$ 183,653,060 $ 207,374,711 $ 40,487,861 $ 138,081,465 \n \n- 36- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"4\" \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 5,259,896 \n \nCurrent Year \n \nTotal \n \n$ \n \nSee notes to the basic financial statements. \n \n- 37- \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n6,082,127 $ 520,978 \n14,061,163 1,027,534 6,531,332 \n \n6,069,051 $ 133,960 \n14,841,798 1,052,795 6,582,170 \n \n550,890 1,768,390 9,185,991 8,532,141 2,180,634 8,366,462 \n1,245,698 257,712 808,902 65089 \n \n562,220 2,071,662 10,375,993 11,571,922 2,329,694 \n294,701 2,780,567 4,822,363 \n402,012 916,844 \n1,180,953 120,232 \n \n35,215 $ 3,140 \n149,062 15,358 96,638 \n525 74,840 347,958 866,565 224,122 \n8,456 22,039 91,045 35,224 22,937 \n237,124 1 039 \n \n6,104,266 137,100 \n14,990,860 1,068,153 6,678,808 \n562,745 2,146,502 10,723,951 12,438,487 2,553,816 \n303,157 2,802,606 4,913,408 \n437,236 939,781 \n1,418,077 121 271 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n61,185,043 $ 66,108,937 $ \n \n2,231,287 $ \n \n68,340,224 \n \nMedia Center Program Staff and Professional Development \n \n1,780,049 339147 \n \n2,309,619 112 719 \n \n202,176 184 382 \n \n2,511,795 297 101 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n63,304,239 $ 68,531,275 $ \n \n2,617,845 $===7.,.1=14.,.9=1=2=0 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 39- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 858-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 14, 2007 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Dougherty County Board ofEducation as ofand for the year ended June 30, 2006, which collectively comprise Dougherty County Board of Education's basic financial statements and have issued our report thereon dated May 14, 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. We did not audit the financial statements of the Dougherty County Board of Education's discretely presented component unit. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion insofar as it relates to the amounts included for Dougherty County Stadium Authority is based on the report of the other auditors. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we and other auditors considered Dougherty County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose ofexpressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our \n2006YB-30X \n \n judgment, could adversely affect Dougherty County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items FS-6471-06-01 and FS-6471-06-02. \nA material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above are material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free ofmaterial misstatement, we, and other auditors, performed tests ofits compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our, and other auditors, tests disclosed no instances ofnoncompliance or other matters that are required to be reported under Government Auditing Standards. \nThis report is intended solely for the information and use ofthe audit committee, management and members ofthe Dougherty County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \n. Respectfully submitted, \n~,.... ,,OQ ~-~ \n~Jssell W. Hinton, CPA, CGFM State Auditor \nRWH:gp \n2006YB-30X \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 858-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 14, 2007 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2006. Dougherty County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofDougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dougherty County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit \n2006SA-30 \n \n does not provide a legal determination on Dougherty County Board ofEducation's compliance with those requirements. \nIn our opinion, the Dougherty County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2006. \nInternal Control Over Compliance \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nWe noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Dougherty County Board ofEducation's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6471-06-01. \nA 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 ofrisk that noncompliance with the applicable requirements of laws, 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. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:gp 2006SA-30 \n \n:\u0026;~!~~ \nState Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-04-01 FS-64 71-04-02 FS-64 71-04-03 FS-6471-05-01 FS-6471-05-02 FS-64 71-05-03 FS-64 71-05-04 \n \nFurther Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-6471-05-01 \n \nIn fiscal year 2005, the School System implemented a plan to eliminate the deficit in the Child Nutrition Program. With guidance from the Georgia Department ofEducation, the Board elected to discontinue the Federal free lunch program. The decision to add the free lunch program to the already existing free breakfast program in fiscal year 2004 resulted in revenue losses far greater than anticipated and proved to be fiscally prohibitive. Operational changes such as the closing of CNS central warehouse operations, realignment ofstaffbased on number ofmeals served, implementation of \"per plate cost\" controls and the updating of meal prices was also achieved in fiscal year 2005 and fiscal year 2006. In fiscal year 2006, meal participation increased with the implementation ofa \"breakfast in the classroom\" program. This program was expanded to more schools in fiscal year 2007. Also, during fiscal year 2007, standardized menus were introduced and staff training on cost efficient meal preparation and inventory control procedures was provided. For fiscal year 2008, emphasis will continue to be placed on improving the quality of meals served while reducing production costs. \n \nOperational changes implemented during fiscal year 2006 resulted in a deficit reduction of approximately $1.0 million. Another $1.0 million reduction is projected for fiscal year 2007. The projected deficit balance at June 30, 2007, is approximately $1.8 million. The School System's goal is to fully eliminate the deficit no later than fiscal year 2011. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-05-02 \n \nThe number of staff available for assignment of accounting functions is limited in the schools. The School System's internal auditor will continue to work with the available staff in each school to develop compensating controls. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-03-01 FA-6471-03-02 FA-6471-04-01 \n \nUnresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Improper Expenditure Amount: $47,740 Finding Control Number: FA-6471-03-01 \n \nThe questioned repair and maintenance expenditures were paid by a Federal, special education funding source and were determined to be improper due to insufficient documentation. These repairs were made to Dougherty County School System facilities which houses the main operational site for the Oaktree Psychoeducational Center and two other service sites. In addition to serving the students of Dougherty County, these sites also serve students from Lee, Terrell, Worth and Baker counties. The School System will adhere to the Georgia Department of Education's requirements for final resolution. \n \n-2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES ACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Inaccurate Indirect Cost Calculation Amount: $23,424 Finding Control Number: FA-6471-03-02 The questioned indirect costs were calculated on the basis of a State fund indirect cost regulation, but were erroneously posted to a Federal fund. Both funds were funding sources for the Oaktree Psychoeducational Program. The Oaktree Program has sites in Albany, Arlington and Blakely that serve students with special needs in eight counties, including Dougherty, Lee, Terrell, Worth, Baker, Miller, Early and Calhoun. The School System will adhere to the Georgia Department of Education requirements for final resolution. \n-3- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dougherty County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \nBudget Preparation/Execution Cash and Cash Equivalents \n \nExpenditures/Liabilities/Disbursements Revenues/Receivables/Receipts \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dougherty County Board of Education disclosed a reportable condition in internal control over major programs for the following compliance requirement. \n \nActivities Allowed or Unallowed \n \nThe reportable condition described above is not considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Dougherty County Board ofEducation's audit disclosed an audit finding required to be reported by section .510(a) of 0MB Circular A-133. This audit finding is included in section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies 84.367 Improving Teacher Quality State Grants 84.938 Hurricane Education Recovery \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n8. Type \"A\" Program Dollar Thres~old The dollar threshold for type \"A\" programs was $783,618. \n \n9. Low Risk Auditee The Dougherty County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-6471-06-01 \n \nCondition: \n \nThis is a repeat finding (FS-6471-05-01, FS-6471-04-01, and FS-6471-0301) from the years ended June 30, 2005, 2004, and 2003, respectively. Deficit Fund Balances. \n \nCriteria: \n \nChapter 25 Reporting/or LUAs with General Fund Deficit Balances of the Financial Management for Georgia Local Units of Administration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department ofEducation requires those LUAs with deficit balances to meet certain reporting requirements\". \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District's General Fund - Regular reported a deficit fund balance in the amount of $1,211,722. The School District's School Food Service Fund reported a deficit fund balance in the amount of $2,892,209. \n \nCause: \n \nThe School District was unable to eliminate deficit fund balances from previous years in the General Fund - Regular. \n \nEffect: \n \nA financial statement irregularity in accordance with O.C.G.A. 20-2-67. \n \nRecommendation: \n \nThe School District should establish policies and procedures designed to ensure that in future periods the School District does not report deficit fund balances. \n \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUESIRECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Reportable Condition Finding Control Number: FS-6471-06-02 \n \nCondition: \n \nThis is a repeat finding (FS-6471-05-02, FS-6471-04-02, FS-6471-03-02, and FS-6471-02-02) from the years ended June 30, 2005, 2004, 2003, and 2002, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n \nRevenues and Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  Based on a review of thirty items, the following deficiencies were noted: 1) Twenty receipts were not adequately documented, 2) Deposit slips could not be located for eight receipts, 3) Four receipts were not deposited timely, and 4) Seven receipts did not have enough information to trace to recording on general ledger. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Based on a review ofthirty items, the following deficiencies were noted: \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Reportable Condition Finding Control Number: FS-6471-06-02 \n \n1) Four expenditures were not adequately documented, 2) Ten expenditures did not have enough information to \ntrace to general ledger, 3) One expenditure was paid for the incorrect amount, \nand 4) It was noted that one school had written checks out of \nsequence. \n \nCause: \n \nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \n \nEffect: \n \nErrors and /or fraud may be detected in a timely manner. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. Additionally, management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED Inadequate Internal Control Procedures Reportable Condition U.S. Department of Education Through Georgia Department of Education Hurricane Education Recovery (CFDA No. 84.938) Finding Control Number: FA-6471-06-01 \n \nCondition: \n \nThere were no procedures in place to ensure that Hurricane Education Recovery Act (HERA) funds provided to the School District for displaced students reported as having disabilities were used for the excess costs of providing special education and related services to students with disabilities. \n \n-4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED Inadequate Internal Control Procedures Reportable Condition U.S. Department of Education Through Georgia Department of Education Hurricane Education Recovery (CFDA No. 84.938) Finding Control Number: FA-6471-06-01 \n \nCriteria: \n \nThe following guidance applied to the management of Emergency Impact Aid for Displaced Students to include funds made available for displaced students: \n1. Section 107(e)(4) of HERA, 2. Volumes \"I\" and \"II\" ofU. S. Department of Education (USED) \nguidelines included in \"Frequently Asked Questions, Emergency Impact Aid for Displaced Students\" and 3. State of Georgia issued publication titled \"Georgia Guidance on Federally Impact Aid\" (GDOE Guidelines). \n \nProvisions of HERA, USED and GDOE Guidelines state that HERA funds for students with disabilities may only be used to pay for special education and related service consistent with the Individuals with Disabilities Act (IDEA). Both Volume \"I\" and \"II\" of USED guidance state that the funds provide for students with disabilities must be recorded and tracked separately from those HERA funds provided for non-disabled students. This Federal requirement was not specifically included in GDOE Guidelines. \n \nProvisions of HERA and GDOE Guidelines state that these funds may become a part of a School District's special education budget to ensure that they are only used to pay for special education and related services consistent with IDEA. The guidelines further stated that since these funds are to be applied and used in a manner as funds made available under Part B ofIDEA, it was also advised to consult with State and local staffwho are cognizant of IDEA requirements. \n \nQuestioned Cost: $22,396 \n \nInformation: \n \nHERA funds received by the School District included $22,396 for students with disabilities. Although required by Federal guidelines, the receipt and expenditure of these funds were not maintained separately. \n \n-5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED OR UNALLOWED Inadequate Internal Control Procedures Reportable Condition U.S. Department of Education Through Georgia Department of Education Hurricane Education Recovery (CFDA No. 84.938) Finding Control Number: FA-6471-06-01 \n \nWe further noted that although advised by GDOE and Federal guidelines, the budget for special education was not modified for the increase in HERA funds designated for special education and related purposes. There was no evidence that State or local special education staff were consulted about the use of these funds in keeping with IDEA requirements. \n \nCause: \n \nThe School District relied solely on GDOE Guidelines which did not require that the School District provide separate accountability of HERA funds provided for students with disabilities. Consideration had not been given to consulting with local and State special education staff or revising its special education budget to ensure that these HERA funds were applied in line with provisions oflDEA. \n \nEffect: \n \nAlthough the School District did overspend their State and Federal special education budgets, the School District did not specifically allocate the $22,396 of HERA funds earmarked for students with disabilities to cover these special education overexpenditures. \n \nRecommendation: \n \nManagement should ensure that procedures are in place to comply with both Federal and State guidelines when administering HERA funds for special education purposes. GDOE should review this matter and determine ifthese funds were used properly or if a refund is appropriate. \n \n-6 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2006 \nFinding Control Number: FS-6471-06-01 \nWe concur with this finding. The $1,211,722 deficit reported for the General Fund - Regular reflects fund balance on the modified accrual basis. This is required for reporting purposes. Operations for the General Fund are budgeted on a cash basis. To provide sufficient fund balance for the accruals and required reserves for bus replacement and inventories, the System will increase fund balances each year by maintaining its expenditures below revenues. \nOperational changes implemented in the Child Nutrition Program since fiscal year 2005 have resulted in a significant reduction of the deficit in the Child Nutrition Fund. As of the end of fiscal year 2007, it is projected that the deficit will have been reduced more than $2.3 million since fiscal year 2005. The System expects to have fully eliminated the deficit and have sufficient funds to meet the required reserves for inventories no later than fiscal year 2009. \nFinding Control Number: FS-6471-06-02 \nWe concur with this finding. The System's central office staffwill continue to work with the current school staff in developing compensating controls. Monitoring by the central office will be performed quarterly rather than annually beginning in fiscal year 2008. The System will also develop ongoing training for school bookkeepers and other school personnel responsible for management oversight. \nFinding Control Number: FA-6471-06-01 \nWe concur with this finding. The System expended more than $1.0 million in local funds for students with disabilities. Any of these expenditures could have been earmarked for the $22,396 HERA funds. The System will provide information to GDOE for their review. \nContact Person: Ellen Collins, Assistant Director of Finance Phone: (229) 431-1813 Fax Number: (229) 431-1239 E-mail Address: ellen.collins@docoschools.org \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2004-h2005","title":"Dougherty County Board of Education, Albany, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. 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Hinton State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n10 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n11 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n29 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n3 SCHEDULE OF STATE REVENUE \n \n32 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n34 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n37 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 16, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dougherty County Board of Education, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Dougherty County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1mons. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Dougherty County Board ofEducation, as ofJune 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2004ARL-11 \n \n In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2005, on our consideration of the Dougherty County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through x and page 29 respectively, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dougherty County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated section 506-24. \nRespectfully submitted, \n~~-~ Russell W. Hinton State Auditor \nRWH:as 2004ARL-11 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nManagement's discussion and analysis of the Dougherty County School Board's financial performance provides an overall review of the Board's financial activities for the fiscal year ended June 30, 2004. The intent of this discussion and analysis is to present the Board's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the Board's financial performance. \nFinancial Highlights \nFinancial highlights for 2004 are as follows: \n Total net assets increased by $6.4 million. This represents a 3.85 percent increase from fiscal year 2003. This increase was due entirely to governmental activities since the Board has no business-type activities. \n Total revenues were $149.5 million. General revenues, which include revenues from General Funds, Capital Project Funds, and the Debt Service Fund, accounted for $60.9 million, or 40.7 percent of this total. Program specific revenues, in the form of Charges for Services, Operating Grants and Contributions and Capital Grants and Contributions accounted for $88.6 million or 59.3 percent of the total. \n The Board incurred $143.0 million in expenses related to governmental activities; however, $88.6 million of these expenses were offset by revenues from program specific Charges for Services, Operating Grants and Contributions and Capital Grants and Contributions. General revenues (primarily taxes) of $60.9 million funded the balance of the remaining $54.5 million of expenditures and the increase in net assets of $6.4 million referenced above. \n Among major funds, the General Fund recorded $136.0 million in revenues and other financing sources, and $136.3 million in expenditures and other financing uses. The General Fund's fund balance decreased from $1.0 million to $0.7 million for a net reduction of $0.3 million. \n During fiscal year 2004 the Board issued General Obligation Sales Tax Bonds in the amount of $25.0 million. The principal and interest on these bonds are payable from a one percent sales and use tax. The proceeds of these bonds will be used for constructing and equipping three elementary schools, renovating and improving one middle school, four high schools, and five elementary schools. These funds will also be used for providing technology upgrades and additions, and for safety and security equipment for all facilities. \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nUsing the Basic Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County Board of Education as a complete operating entity. \nThese financial statements generally present the Board's most significant funds both separately and with all funds combined. For the Dougherty County Board of Education, the General Fund is by far the most significant fund. A brief discussion of these statements is presented below. \nDistrict-wide Statements \nThe Statement of Net Assets and Statement of Activities provide consolidated financial data for the large number of funds used by the Board to monitor programs and activities. These consolidated statements give a summary view of all financial activities and assist the reader in assessing the financial position of the Board as a whole for the fiscal year ending June 30, 2004. \nAll of the Board's programs and activities included in the Statement of Net Assets and the Statement of Activities are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement ofNet Assets and Statement ofActivities report the Board's net assets and changes to net assets. The change in net assets is significant because this change indicates whether the financial position of the Board has improved or diminished. The reasons for the change in net assets may be the result of many factors, some financial, some not. Nonfinancial factors may include the Board's property tax base, facility conditions, required educational programs, and other factors. The Statement of Net Assets reports the consolidated Assets, Liabilities, and Net Assets of the Board as a whole. The Statement of Activities reports consolidated Revenues and Expenditures and the beginning and ending Net Assets of the Board as a whole. \nFund Financial Statements \nThe Balance Sheet reports Assets, Liabilities, and Fund Balances for the General Fund, District Wide Capital Project Funds, and the Debt Service Funds both separately and in total with all funds combined. \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nThe Statement of Revenues, Expenditures and Changes in Fund Balances reports Revenues, Expenditures, and Other Financing Sources for the General Fund, District Wide Capital Project Funds, and the Debt Service Funds. It also reports the beginning, ending, and net change in fund balances for these groups of funds. This information is presented for each group both separately and in total. \nFund Types \nGovernmental Funds \nMost of the Board's financial activities are reported in governmental funds. These funds record how money flows into and out of these funds in the current period, and the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a detailed short-term view of the Board's general governmental operations and the basic services they provide. \nThis governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds \nThe Board is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The Board is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The Board excludes these fund activities from the district-wide financial statements because these fund assets cannot be used to finance operations. Fiduciary fund balances are reported on the Statement of Fiduciary Net Assets. Fiduciary Fund assets at June 30, 2004, were $45,243. \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2003 and fiscal year 2004. \nStatement of Net Assets \nAs previously mentioned, the Statement ofNet Assets presents consolidated financial data for the Board as a whole. Table 1 provides a summary of the Board's net assets for fiscal year 2003 and fiscal year 2004. \n- 111 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nTable 1 Net Assets (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear2004 Year 2003 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 73,091 146,310 \n \n$ 45,060 140,132 \n \nTotal Assets \n \n$ 219,401 $ 185,192 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 18,341 27,502 \n \n$ 17,838 223 \n \nTotal Liabilities \n \n$ 45,843 $ 18,061 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ 143,533 32,861 -2,836 \n \n$ 140,132 27,781 -782 \n \nTotal Net Assets \n \n$ 173~558 $ 167~131 \n \nTotal Net Assets increased $6.4 million in fiscal year 2004. Capital assets, net of related debt, contributed $3.4 million to the increase. Restricted assets contributed $5.l million to the increase. The increase in Total Net Assets was offset by an increase of $2.1 million in the deficit of Unrestricted Net Assets. \nRestricted assets are assets that must be used for a specific purpose. These include: funds restricted for bus replacement: $0.7 million; funds restricted for the continuation of Federal programs: $0.7 million; funds restricted for debt service: $7.1 million; and funds restricted for capital projects: $24.4 million. \n \nThe Unrestricted Assets (Deficit) of $2.8 million reported in the Net Asset section of Table 1 above is primarily due to a deficit fund balance in the Child Nutrition Program. Factors contributing to the deficit were addressed by the System in fiscal year 2005. For several years prior to fiscal year 2004, breakfast was served to all students free of charge. Beginning in fiscal year 2004, the System implemented the Federally funded free lunch program in addition to the free breakfast program. The loss of revenues associated with the implementation of the free lunch program proved to be much greater than anticipated. In order to restore the System to a more equitable funding status, the Board terminated its participation in the free lunch program as \n \n- IV - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nof February 1, 2005. The costs of food and labor continued to rise during fiscal year 2004 which necessitated the need for the System to increase the price of meals for adults in November, 2004, and for student lunches in February, 2005. The prices charged by surrounding systems was the guide used by the Board in making the final price decision. The System is working in collaboration with the Georgia Department of Education in evaluating and identifying areas of potential cost reduction, and where inefficiencies might exist. The System is committed to eliminating the deficit in the Child Nutrition Program without compromising the quality of service provided the students of Dougherty County. This balance also includes a deficit in the Capital Projects Funds in the amount of $406,000. This deficit will be funded by budgeted transfers from the General Fund in the amount of $203,000 in each of fiscal years fiscal year 2005 and fiscal year 2006. The increase in current assets of $28.0 million is due to the investment of proceeds from the $25.0 million General Obligation Bond issuance. Note, however; this increase in net assets is offset by a corresponding increase in Long-Term Liabilities primarily for the repayment of the bonds. Statement of Activities Table 2 shows the changes in net assets for fiscal year 2003 and fiscal year 2004 as reported on the Statement ofActivities. \n-v- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nTable 2 Change in Net Assets \n(in Thousands) \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nTotal Revenues \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General and School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central and Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2004 \n \nYear 2003 \n \n$ 1,735 86,484 332 \n$ 88,551 \n \n$ 2,052 87,370 \n$ 89,422 \n \n$ 35,506 \n7,060 9,111 \n376 126 \n5,348 485 \n2,907 \n$ 60,919 \n$ 149,470 \n$ 88,041 \n5,387 4,443 3,165 9,842 1,912 10,837 5,143 2,157 \n394 873 10,898 -49 \n$ 143,043 \n$ 6,427 \n \n$ 32,710 36 \n7,987 7,445 \n451 74 \n4,126 -890 2,417 \n$ 54,356 \n$ 143,778 \n$ 86,521 \n5,324 5,022 3,259 9,875 1,679 10,760 5,014 2,244 \n590 951 9,413 238 \n$ 140,890 \n$ 2,888 \n \n- Vl - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nGovernmental Activities \n \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2003 and fiscal year 2004. This information is presented on the Statement of Activities. \n \nFor fiscal year 2004, Instructional activities comprised 61.55 percent of the total governmental program cost of services. Support Services comprised 29.99 percent, noninstructional services comprised 8.50 percent, and Interest expense comprised -0.04 percent. \n \nTable 3 Governmental Activities \n(in Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 88,041 $ 86,521 $ 24,800 $ 24,184 \n \n5,387 4,443 3,165 1,321 8,521 1,912 10,837 5,143 2,108 \n49 \n \n5,324 5,022 3,259 1,334 8,541 1,679 10,760 5,014 2,215 \n29 \n \n3,383 1,887 1,622 -575 5,299 1,912 6,466 3,089 2,057 \n8 \n \n3,269 1,921 1,660 -546 5,339 1,679 6,333 2,828 2,012 \n4 \n \n394 873 10,898 -49 \n \n590 951 9,413 238 \n \n394 871 3,328 -49 \n \n590 881 1,076 238 \n \nTotal Expenses \n \n$ 143.043 $ 140,890 $ 54.492 $ 51,468 \n \nAlthough program revenues make up a majority of the revenues, the Board is still dependent upon tax revenues for governmental activities. Over 28.2 percent of instructional activities are supported through taxes and other general revenues. For all governmental activities, general revenue support is 38.1 percent. \n \nThe Board's Funds \n \nAs reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances, total governmental funds recorded revenues and other financing sources of $178.8 million and expenditures and other financing uses of $149.8 million. The combined increase in Fund Balances for the General Fund, Capital Project Funds and Debt Service Funds was $29.0 million. \n \n-Vll - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nGeneral Fund Budgeting Highlights \n \nThe Board's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. During fiscal year 2004, the Board amended its general fund budget as needed. The Board uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. \n \nFor the General Fund, the final budgeted revenues and other financing sources of $136.3 million exceeded the original budgeted amount of $130.2 million by $6.1 million. This difference was primarily due to an increase in state revenues budgeted of $0.9 million, and an increase in Federal revenues budgeted of $4.8 million. Actual revenues and other financing sources of $136.0 million were essentially the same as the final budgeted amount. \n \nThe final budgeted expenditures and other financing uses of $137.8 million exceeded the original budgeted amount of $130.7 million by $7.1 million. This difference was primarily due to an increase in budgeted Instructional expenditures of $4.8 million, an increase in budgeted Support Services expenditures of $1.7 million, and an increase in Food Service Operations of $0.4 million. The increase in budgeted instructional expenditures of $4.8 million was funded primarily by the $4.8 million in additional Federal revenues referenced above. The increase in Support Services expenditures of $1.7 million was partially funded by the $0.9 million additional state revenues referenced above. Actual expenditures and other financing uses of $136.3 million were $1.5 million less that the final budgeted amount. \n \nCapital Assets and Debt Administration \n \nCapital Assets \n \nAt the end of fiscal year 2004 the Board had $146.3 million invested in capital assets. All of these assets were in governmental activities. Table 4 shows fiscal year 2003 and fiscal year 2004 balances. \n \nTable 4 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nLand Construction in Progress Buildings and Building Improvements Equipment \n \n$ 9,553 11,510 \n119,280 5,967 \n \n$ 9,084 8,010 \n118,352 4,686 \n \nTotal \n \n$ 146!310 $ 140!132 \n \n- vm - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nCapital Assets increased by $6.2 million versus fiscal year 2003. All categories of capital assets increased. These increases reflect the continuation of an aggressive program of capital improvements, which include renovations for instructional improvement at numerous facilities, as well as new construction projects. These increases also include capital expenditures for additions and upgrades in technology, and the installation of security and access systems that will improve safety for schools and other facilities. \n \nDebt \n \nTable 5 summarizes the Long-Term debt outstanding at June 30 for fiscal year 2003 and fiscal year 2004. \n \nTable 5 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2004 Year 2003 \n \nGeneral Obligation Bonds Unamortized Bond Premium Capital Leases Claims Payable - Workers' Compensation \n \n$ 25,000 810 \n1,491 201 \n \n$_ _2=2=-3 \n \nTotal \n \n$ 27,502 $==2=2=3 \n \nThe General Obligation Bond debt shown above reflects the $25.0 million General Obligation Bond issuance previously mentioned, plus $0.8 million in rm-amortized bond premiums. \n \nThe $1.5 million for capital leases shown above is primarily due to the lease/purchase of 23 buses to upgrade the school bus fleet. \n \nThe Dougherty County Board of Education is self insured for Workers' Compensation claims. The Claims Payable for Workers' Compensation of $0.2 million shown above represents estimated reserves for payments of existing claims at June 30, 2004. \n \nCurrent Issues \n \nReductions in both state and local funding continue to be a major concern for the Dougherty County Board of Education. State QBE funding for fiscal year 2004 reflected an \"austerity reduction\" of $3.4 million. The \"austerity reduction\" for fiscal year 2005 was an additional $3.7 million. Preliminary state funding projections for fiscal year 2006 indicate this reduction in funding will not be restored, but will remain at the current level. \"Austerity reductions\" for fiscal year 2003, fiscal year 2004, and fiscal year 2005 combined have totaled in excess of $8.9 million. \n \n- lX - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nIn addition to the loss of state funding, the local tax digest has declined for the past two years and is not expected to increase in fiscal year 2005 and beyond. The reductions in QBE formula earnings referenced above have been partially offset by increases in state equalization grant funding. Equalization funding is designed to reduce the disparity between wealthy systems and relatively poorer systems based on local wealth per student. Dougherty County has experienced a decrease in wealth per student primarily due to the lack of growth in the local tax base (digest). During the same period, other systems have become wealthier, thus further increasing the disparity in local wealth. It is unlikely the Dougherty County School System will continue to experience significant increases in equalization funding in future periods; therefore, it is critical that state funding be restored. In spite of the adverse funding issues mentioned above, the Board, Superintendent, and all system personnel are committed to providing the highest quality of instruction and support to the children of Dougherty County through the efficient allocation and use of available funds. Contacting the Board's Financial Management This management's discussion and analysis report is designed to provide our citizen's, taxpayers, investors, and creditors with a general overview of the Board's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Robert Lloyd, Executive Director of Business and Operations, at the Dougherty County Board of Education, 200 Pine Avenue, Albany, Georgia 31702. You may also email your questions to robert.lloyd@dougherty.kl2.ga.us \n- X- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2004 \nInvestments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Inventories Capital Assets Land Construction in Progress Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n54,123,464 \n \n4,185,756 8,990,866 4,399,999 \n351,524 166,251 872,881 \n \n9,553,309 11,509,724 197,134,663 14,895,860 -86,783,199 \n \n$ ===21=9=,4=0='1,=09=8= \n \n$ \n \n2,396,257 \n \n3,481,240 \n \n11,557,658 \n \n273,430 \n \n561,864 \n \n71,265 \n \n8,499,973 19 001,840 \n \n$ \n \n45 843,527 \n \n$ \n \n143,532,449 \n \n676,742 660,530 7,066,976 24,457,170 -2,836,296 \n \n$ \n \n173,557,571 \n \n$ ==2=1=9,.,.,4=0=-1,=09=8= \n \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2004 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n88,040,450 $ \n \n5,387,364 4,443,137 3,165,232 1,321,407 8,519,700 1,912,239 10,836,340 5,142,738 2,108,367 \n49,219 \n \n394,217 873,240 10,898,193 -48,705 \n \n$ \n \n143,043 138 $ \n \n978,182 \n756,380 1 734,562 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n62,262,485 \n \n2,004,518 2,556,475 1,543,149 1,896,633 3,220,546 \n \n4,370,474 1,722,195 $ \n51,106 40,731 \n \n2,560 6,813,757 \n \n$ \n \n86 484 629 $ \n \n$ 331,818 331 818 $ \n \n-24,799,783 \n-3,382,846 -1,886,662 -1,622,083 \n575,226 -5,299,154 -1,912,239 -6,465,866 -3,088,725 -2,057,261 \n-8,488 \n-394,217 -870,680 -3,328,056 \n48,705 \n-54,492, 129 \n \n$ \n \n35,505,587 \n \n7,059,678 9,111,286 \n376,444 125,709 5,347,977 484,754 2,907,310 \n \n$ \n \n60 918 745 \n \n$ \n \n6,426,616 \n \n167,130,955 \n \n$ ===1=7=3\u003c=5=57~57=1= \n \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2004 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n207,326 $ \n \n1,475 $ \n \n$ \n \n902,878 \n \n47,379,703 \n \n5,840,883 \n \n2,947,754 8,990,866 4,399,999 \n349,966 166,251 872,881 \n \n1,565,926 1,558 \n \n1,224,618 \n \n208,801 54,123,464 \n5,738,298 8,990,866 4,399,999 \n351,524 166,251 872 881 \n \nTotal Assets \n \n$ 18,630,595 $ 49,154,513 $ 7,066,976 $ ===7=4=!:,8=5=2,=08=4= \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Claims Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Debt Service Inventories Capital Projects Private Sources \nUnreserved Designated for Self-Insurance Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ 2,605,058 \n \n$ \n \n3,481,240 \n \n11,557,658 \n \n200,751 \n \n$ \n \n273,430 \n \n561,864 \n \n71 265 \n \n$ 17,915,972 $ \n \n835,294 \n \n$ \n \n$ \n \n676,742 \n \n$ \n \n872,881 \n \n$ 48,725,219 \n \n127,715 \n \n1,367,717 \n \n-2,330,432 \n \n-406,000 \n \n$ \n \n714 623 $ 48,319,219 $ \n \n$ 7,066,976 \n7,066,976 $ \n \n2,605,058 3,481,240 11,557,658 \n200,751 273,430 561,864 \n71 265 \n18 751 266 \n676,742 7,066,976 \n872,881 48,725,219 \n127,715 \n1,367,717 \n-2,330,432 -406,000 \n56,100,818 \n \nTotal Liabilities and Fund Balances \n \n$ 18,630,595 $ 49,154,513 $ 7,066,976 $ ===7=4=!:,8=5=2,=08=4= \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30. 2004 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases Unamortized Bond Premiums \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 56,100,818 \n \n$ 9,553,309 11,509,724 \n197,134,663 14,895,860 -86,783,199 \n \n146,310,357 \n \n-1,552,542 \n \n$ -25,000,000 -1,491,300 -809,762 \n \n-27,301,062 \n \n$ 173,557,571 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nProceeds of Long-Term Capital - Related Debt - Par Value Premiums on Bonds Sold Capital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 36,678,671 \n \n$ \n \n502,153 $ 9,111,286 $ 7,059,678 \n \n72,063,399 \n \n20,308,257 \n \n1,734,562 \n \n135,585 \n \n343,329 \n \n5,840 \n \n2,862,044 \n \n61 618 \n \n36,678,671 16,673,117 72,063,399 20,308,257 \n1,734,562 484,754 \n2,923,662 \n \n$ 134,284,671 $ 9,516,233 $ 7,065,518 $ 150,866,422 \n \n$ 82,634,887 \n \n$ \n \n0 $ 82,634,887 \n \n5,374,597 4,357,109 2,898,077 1,315,128 8,262,959 1,691,460 $ 10,439,787 5,638,803 2,038,908 \n49,219 362,743 873,240 9,815,495 \n \n300,280 215,221 \n13,018,730 \n \n5,374,597 4,357,109 2,898,077 1,315,128 8,262,959 1,991,740 10,655,008 5,638,803 2,038,908 \n49,219 362,743 873,240 9,815,495 13,018,730 \n \n227,995 24 910 \n \n227,995 24 910 \n \n$ 136,005,317 $ 13,534,231 $ \n \n0 $ 149,539,548 \n \n$ -1,720,646 $ -4,017,998 $ 7,065,518 $ \n \n1,326,874 \n \n$ 25,000,000 883,377 \n$ 1,719,295 305,422 \n-305,422 \n \n$ 25,000,000 883,377 \n1,719,295 305,422 -305,422 \n \n$ 1,413,873 $ 26,188,799 \n \n$ 27,602,672 \n \n$ \n \n-306,773 $ 22,170,801 $ 7,065,518 $ 28,929,546 \n \n1,021,396 \n \n26,148,418 \n \n1 458 \n \n27,171,272 \n \nFund Balances - Ending \n \n$ \n \n714 623 $ 48,319,219 $ 7,066,976 $ 56,100,818 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \n \n$ 28.929,546 \n \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \n \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \n \n$ 10,107,841 -3 913 041 \n \n6,194,800 \n \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \n \n-1,380,316 \n \nIn the Statement of Activities, only the gain on the sale of the equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the equipment sold. \n \n-16,352 \n \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from: \n \nGeneral Obligation Bonds issued, including a premium of $883,377 \n \n-25,883,377 \n \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \n \n-1,719,295 \n \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds. but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \n \nAmortized Bond Premium Capital Lease Payments \nTotal Long-Term Debt Repayments \n \n$ \n \n73,615 \n \n227,995 \n \n301 610 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ =====6,=42=6=,6=1=6 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2004 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nOther \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \n \nAGENCY FUNDS \n \n$ \n \n7,658 \n \n37,585 \n \n$ ==4=5a!::,2=43= \n \n$ ===45:!.'=24=3= \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty County Board ofEducation (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dougherty County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and Special Purpose Local Option Sales Tax proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and claims and judgments, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dougherty County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on September 3, 2003 (levy date). Taxes were due on December 20, 2003 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1 % of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $36,678,671. \n \nThe tax millage rate levied for the 2003 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n19.0 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $16,170,964 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (weighted average). The School District uses the consumption method to account for \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \ninventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCONSUMABLE SUPPLIES On the basic financial statements, consumable supplies are reported at cost (weighted average). The School District uses the consumption method to account for the consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2004, are recorded as prepaid items. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time 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 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 ofnormal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand and Land Improvements Buildings and Improvements Equipment \n \nAny Amount \n \n$ \n \n5,000 \n \n$ \n \n5,000 \n \nNIA 20 to 80 years \n4 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nDEFICIT FUND BALANCES \n \nFunds reporting a deficit fund balance and deficit net assets at June 30, 2004, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGovernmental Fund Type General Fund Capital Projects Fund \n \n$ 2,330,432 $ 406,000 \n \nThe deficit in the General Fund is a result ofthe Child Nutrition program incurring expenditures in excess of available state and Federal funds and revenues from meal sales. With guidance from the Georgia Department ofEducation, the Board is evaluating the cost effectiveness ofall aspects ofits Child Nutrition operations. The decision to implement the Federal free lunch program along with the already existing free breakfast program was reexamined. The loss of revenues associated with the implementation of the free lunch program in fiscal year 2004 proved to be greater than anticipated. In mid-year of fiscal year 2005, the Board terminated the free lunch program which provided lunches to all students free of charge. However, the Board elected to continue the free breakfast program. Meal prices charged to adults and students were adjusted to compensate for the continuing rise in food and labor costs. Prices charged by school systems in surrounding areas and of comparable sizes were used as a guide for the price adjustment. The Board will continue to take the necessary steps to eliminate the Child Nutrition program deficit while maintaining a high standard of service to the students of the Dougherty County School System. \n \nThe balance ofthe deficit in the Capital Projects Funds will be funded by transfers from the General Fund in the amount of $203,000 in fiscal year 2005 and $203,000 in fiscal year 2006. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \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. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $3,924,325. The amounts of the total bank balances are classified into three categories of credit risk: \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 506,732 \n \n2 \n \n0 \n \n3 \n \n3,417,593 \n \nTotal \n \n$ 3,924,325 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \n \nAt June 30, 2004, the carrying value of the School District's total investments was $54,123,464 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nType of Investment U. S. Government \nLocal Government Investment Pools Total Investments \n \nRisk Categories \n \n2 \n \n3 \n \nCarrying Amount \n \nFair Value \n \n$ I 451.164 $.=======\"'O $.=======\"0' $ 1,451,164 $ 1,451,164 \n \n52,672,300 \n \n52,672,300 \n \n$ 54 123 464 $ 54,123,464 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission (SEC) as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2003 \n \nIncreases \n \nBalances Decreases June 30, 2004 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,083,876 $ 469,433 \n \n$ 9,553,309 \n \n8,009,689 \n \n6,388,811 $ 2,888,776 11,509,724 \n \nTotal Capital Assets Not Being Depreciated $ 17,093,565 $ 6,858,244 $ 2,888,776 $ 21,063,033 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \n \n$ 193,418,503 $ 3,716,160 \n \n13,255,629 \n \n2,422,213 $ \n \n$ 197,134,663 781,982 14,895,860 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n75,066,269 8,569,519 \n \n2,787,648 1,125,393 \n \n765,630 \n \n77,853,917 8,929,282 \n \nTotal Capital Assets, Being Depreciated, Net $ 123,038,344 $ 2,225,332 $ \n \n16,352 $ 125,247,324 \n \nGovernmental Activity Capital Assets - Net $ 140,131.909 $ 9,083.576 $ 2,905.128 $ 146,310.357 \n \nCapital assets being acquired under capital leases as of June 30, 2004, are as follows: \n \nGovernmental Funds \n \nEquipment Less: Accumulated Depreciation \n \n$ 1,958,642 266,457 \n \n$ 1,692.185 \n \nCurrent year depreciation expense by function is as follows: \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Enterprise Operations Food Services \n \n$ 2,313,378 \n \n$ \n \n5,403 \n \n36,408 \n \n120,898 \n \n2,657 \n \n114,353 \n \n68,490 \n \n89,878 \n \n658,086 \n \n31,964 \n \n13,320 \n \n1,141,457 458,206 \n \n$ 3,913,041 \n \nNote 6: RESTRICTED ASSETS \n \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: \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ \n \n$ \n \n21,236 $ 592,090 \n \n1,475 \n \n$ 5,840,883 $ 23,022,015 $ 24,357,688 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2004, consisted of the following: \n \nTransfer to \n \nTransfers From General Fund \n \nDistrict-wide Capital Projects \n \n$====3==05=-\"',4==2==2 \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 7: INTERFUND TRANSFERS \n \nTransfers are used to move property tax revenues collected by the General Fund to (1) the Districtwide Capital Projects Fund to correct deficit in the Capital Projects Fund, and to (2) cover a portion of employees salaries not funded as a part of Special Purpose Local Option Sales Tax (SPLOST) projects. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $300,000 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEndofYear Liability \n \n2003 2004 \n \n$ 350,740 $ 419,254 $ 547,202 $ 222,792 $ 222,792 $ 593,708 $ 615 749 $ 200,751 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2003 2004 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ \n \n0 $ \n \n32,984 $ \n \n32,984 $ \n \n0 \n \n$ \n \n0 $ \n \n53,241 $ \n \n53,241 $ \n \n0 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ \n \n50,000 \n \n$ 250,000 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$====0 $ 10.000.000 $ 10.000.000 $=====0 \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The Dougherty County Board of Education has entered into various lease agreements as lessee for buses and a point of sale system. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2004 \n \n2.00% - 4.00% $ 25,000.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \n \nCapital Leases \n \nGovernmental Funds \n \nGeneral \n \nClaims \n \nObligation \n \nPayable \n \nBonds \n \nUnamortized Bond \nPremium \n \nTotal \n \nBalance July 1, 2003 \n \n$ \n \n0 $ 222,792 $ \n \n0 $ \n \n0 $ 222,792 \n \nAdditions Capital Leases Claims and Changes In Estimates G. 0. Bonds Unamortized Bonds \n \n1,719,295 \n \n593,708 \n \n25,000,000 \n \n883,377 \n \n1,719,295 \n593,708 25,000,000 \n883,377 \n \nDeductions Debt Retired Claims Paid Bond Premiums Amortized \n \n227,995 \n \n615,749 \n \n73 615 \n \n227,995 615,749 \n73 615 \n \nBalance June 30, 2004 \n \n$ 1 421 3QQ $ 200 751 $ 25,00Q QQQ $ 809,762 $ 27,501,813 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 498 609 $ \n \n90,520 $ 7,690 QQQ $ 22Q,844 $ 8,422,273 \n \nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 24- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 10: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nCanital Leases \n \nPrincinal \n \nInterest \n \n2005 2006 2007 2008 \n \n$ 498,609 $ 353,481 361,998 277,212 \n \n34,824 20,556 12,038 \n3 316 \n \nTotal Principal and Interest \n \n$ 1,491,300 $ \n \n70 734 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincinal \n \nInterest \n \nUnamortized Bond \nPremium \n \n2005 2006 2007 2008 \n \n$ 7,690,000 $ 7,955,000 8,265,000 1,090,000 \n \n789,772 $ 623,025 317,325 \n24,525 \n \n220,844 220,844 220,844 147,230 \n \nTotal Principal and Interest $ 25,000.000 $ 1,754.647 $ 809.762 \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $1,325,381 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$1,310,937 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $14,444 \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2004, together with funding available: \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n04-647-026 Security and Access \nControl System \n \n$ 3,258,637 $ 1,134,284 861,906 \n \n$ 4,120,543 $ 1,134.284 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 14: RETIREMENT PLANS \nFiscal Year 2004 2003 2002 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 7,044,211 $ 6,901,145 $ 6,536,755 \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL(1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n35,161,173 $ \n \n35,161,173 $ \n \n36,678,671 \n \n85,000 \n \n85,000 \n \n502,153 \n \n71,437,646 \n \n72,334,187 \n \n72,063,399 \n \n19,074,415 \n \n23,892,891 \n \n20,308,257 \n \n1,499,478 \n \n1,580,483 \n \n1,734,562 \n \n94,000 \n \n94,000 \n \n135,585 \n \n1333307 \n \n1593407 \n \n2 862 044 \n \n$ \n \n128,685,019 $ \n \n134 741 141 $ \n \n134 284 671 \n \n$ \n \n80,406,846 $ \n \n85,171,333 $ \n \n82,634,887 \n \n4,902,559 4,577,915 2,965,786 1,712,252 7,745,437 1,796,927 9,970,827 4,460,854 2,201,434 \n14,200 326,700 869,228 8,212,601 \n \n5,170,664 5,602,694 3,004,888 1,814,992 7,776,901 1,868,399 10,081,098 4,502,310 2,196,541 \n63,712 409,582 957,173 8,633,546 \n4,657 \n \n5,374,597 4,357,109 2,898,077 1,315,128 8,262,959 1,691,460 10,439,787 5,638,803 2,038,908 \n49,219 362,743 873,240 9,815,495 \n252,905 \n \n$ \n \n130,163,566 $ \n \n137,258,490 $ \n \n136 005 317 \n \n$ \n \n-1 478 547 $ \n \n-2517349 $ \n \n-1 720 646 \n \n$ \n \n1,497,500 $ \n \n1,520,345 $ \n \n1,719,295 \n \n-538 000 \n \n-538 000 \n \n-305 422 \n \n$ \n \n959 500 $ \n \n982 345 $ \n \n1413873 \n \n$ \n \n-519,047 $ \n \n-1,535,004 $ \n \n-306,773 \n \n3,823,688 \n \n3,825,171 \n \n1,021,396 \n \n9813111 \n \n9813111 \n \nFund Balances - Ending \n \n$ \n \n13117752 $ \n \n12,103,278 $ \n \n714 623 \n \nNotes to the Schedule of Revenues Exi;ienditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Direct Impact Aid Fund for the Improvement of Education Pass-Through From Georgia Department of Education Education for Homeless Children and Youth Enhancing Education Through Technology Program Improving Teacher Quality State Grants Reading First State Grants Safe and Drug-Free Schools and Communities Special Education State Program Improvement Grants for Children with Disabilities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States Pass-Through From Georgia Department of Human Resources Safe and Drug-Free Schools and Communities \nTotal U.S. Department of Education \nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Child Care School Age Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A N/A $ \n$ \n \n(2) 9,091,508 \n9,091,508 \n \n10.550 \n \nN/A $ \n \n348,335 9,439,843 \n \n84.027 84.173 \n \nN/A $ N/A \n$ \n \n3.575,000 112 903 \n3,687.903 \n \n84.041 84.215 \n84.196 84.318 84.367 84.357 84.186 \n84.323 84.298 84.010 84.048 \n84.186 \n \nNIA N/A N/A N/A N/A \nN/A N/A N/A NIA \nN/A \n$ \n \n(3) 6,617 \n30,000 256,021 1,615,124 279,846 159,854 \n25,843 202,394 6,877,406 223,815 \n15,000 \n13,379,823 \n \n93.525 \n \nN/A $ \n \n2 250 \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2004 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nLabor, U.S. Department of Pass-Through From Southwest Georgia Regional Development Center Workforce Investment Act Providing Rewarding Youth Achievement Services (RYA) Youth (YETP) Youth Opportunity Grants \nTotal U.S. Department of Labor \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marine Corps R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n17.998 17.255 17.263 \n \nN/A \n \n$ \n \nN/A \n \nNIA \n \n161,024 74,336 50 188 \n \n$ _ _ _ _2_8_5~,5_48_ \n \n$ \n \n48,308 \n \n78,424 \n \n$ _ _ _ _1_2~6~,7~32~ \n \nTotal Federal Financial Assistance N/A = Not Available \n \n$ ===2=3e!:2=3=4=1=96= \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($1,681,624) were not maintained separately and are included in the 2004 National School Lunch Program. \n(3) Funds earned on the Impact Aid program, in the amount of $207,232, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Migrant Education Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Apprenticeship Program Georgia Learning Resources System Health Insurance K-3 Statewide Reading Program K-3 Statewide Reading Program - SED 4-8 Statewide After School Program Mentor Teachers National Teacher Certification Preschool Handicapped Program School Improvement (Georgia\"s Choice) Severely Emotionally Disturbed \n- 32 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n940,626 \n \n5,155,922 332,769 \n11,246,923 1,075,243 5,292,691 627,813 1,370,912 7,777,484 6,929,204 1,696,158 \n318,615 3,000,848 2,703,105 \n654,092 169,578 997,534 386,211 665,197 \n39,678 1,474,569 \n464,754 284,395 \n1,493,563 3,130,023 4,230,316 \n1,588,217 331,818 310,804 60,400 5,926 \n5,347,978 450,802 156,726 \n-3,418,370 \n47,500 87,468 1,310,937 247,139 12,000 139,239 \n2,018 5,440 235,907 240,000 2,169,771 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2004 \nAGENCY/FUNDING \nGRANTS Education, Georgia Department of Lottery Program Computers in the Classroom \nOffice of the Governor Georgia Challenge Program \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACT Education, Georgia Department of Foreign Language Model Program \nOTHER Community Affairs, Georgia Department of Local Assistance Grant \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n51,106 \n \n40,000 \n \n14,444 \n \n165,906 \n \n2 000 \n \n$ ===7-2,=06=3,,.,,3=9=9 \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2004 \n \nSCHEDULE \"4\" \n \nPROJECTS \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED \nCOST(2) \n \nAMOUNT EXPENDED IN CURRENT YEAR(3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \nThe acquisition, construction, and equipping of six new elementary physical education facilities, two new middle schools, supply services freezer, completion of expansion program at five schools, roof replacement on 24 buildings, technology power upgrade on 30 buildings, ceilings and lights in 27 buildings, HVAC upgrades on 24 buildings, four new high school field houses, three support facilities for new elementary schools, renovation of McIntosh Teacher Academy, renovation of five schools, Highland conversion, underslab plumbing replacement in 17 buildings, asbestos removal at 48 sites, lawn revitalization at 30 sites, facilities department shops, tower, media service center, security lighting at 28 sites, sports field lighting at four sites and 41 new vehicles, including the acquisition of all necessary property, the maximum cost of such projects not to exceed $88,653,060 \n \n$ 88,653,060 $ 106,999,207 $ \n \n6,166,855 $ 100,832,352 Ongoing \n \nThe acquisition, construction and equipping of three elementary schools, renovation and improvements of one middle school, renovation and improvements of four high schools, renovation and improvements of five elementary schools, provision of gifted, special education, and alternative education sites, capital funding necessary for compliance with Individuals with Disabilities Education Act (IDEA) for children with disabilities, renovation of existing school buildings, four Pre-K facilities in each of four quadrants in the Dougherty County School System, additional technology (hardware and software), including teacher and student classroom computers, peripheral devices and wiring, mobile wireless computer labs, accessory support technology, wireless connectivity for portable classrooms and technology associates with distance and foreign language labs, safety equipment including, but not limited to, upgrading locks on all school buildings, installation of cameras and other devices on schools and school buses, and security/attendance card system, upgrade of school vehicles and maintenance equipment, funding certain financing and project management cost for implementation of capital programs funded through SPLOST 11, the maximum cost of such projects not to exceed $95,000,000 \n \n95,000,000 \n \n95,000,000 \n \n7,162,899 \n \n579,232 Ongoing \n \n$ 183,653,060 $ 201,999,207 $ 13,329,754 $ 101,411,584 \n \n- 34- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2004 \n \nSCHEDULE \"4\" \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 4,470,124 \n \nCurrent Year \n \n0 \n \nTotal \n \n$ 4470,124 \n \nSee notes to the basic financial statements. \n \n- 35 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2004 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES OPERATIONS \n \nTOTAL \n \n$ \n \n5,995,624 $ 5,512,145 $ \n \n74,313 $ \n \n5,586,458 \n \n391,410 \n \n221,847 \n \n1,877 \n \n223,724 \n \n13,157,032 \n \n11,121,055 \n \n339,017 \n \n11,460,072 \n \n1,227,355 \n \n809,207 \n \n19,978 \n \n829,185 \n \n6,173,676 \n \n8,217,540 \n \n57,095 \n \n8,274,635 \n \n737,377 1,588,950 9,067,362 8,037,940 1,971,862 8,028,834 \n1,169,283 460,109 772,180 46 330 \n \n767,317 1,753,796 10,740,658 10,211,261 2,398,497 \n345,026 3,055,923 3,953,216 \n352,602 892,957 \n944,595 99404 \n \n3,437 24,130 113,135 168,112 223,267 \n11,530 43,478 49,772 15,338 19,571 \n223,933 4 086 \n \n770,754 1,777,926 10,853,793 10,379,373 2,621,764 \n356,556 3,099,401 4,002,988 \n367,940 912,528 \n1,168,528 103 490 \n \n$ \n \n58,825,324 $ 61,397,046 $ \n \n1,392,069 $ \n \n62,789,115 \n \n1,714,310 331 000 \n \n2,393,177 62,085 \n \n156,188 115,926 \n \n2,549,365 178,011 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n60,870,634 $ 63,852,308 $ \n \n1,664,183 $ =====6,..5,..,5=16='=.4=9=1 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 37 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 16, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dougherty County Board of Education as of and for the year ended June 30, 2004, which collectively comprise Dougherty County Board ofEducation's basic financial statements and have issued our report thereon dated March 16, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dougherty County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dougherty County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6471-04-01, FS-6471-04-02 and FS-6471-04-03. \n2004YB-30 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nThis report is intended solely for the information and use of the audit committee, management and members of the Dougherty County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2004YB-30 \n \nssell W. Hinton State Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 16, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2004. Dougherty County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofDougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dougherty County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dougherty County Board ofEducation's compliance with those requirements. \n2004SA-30 \n \n In our opinion, the Dougherty County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2004. \nInternal Control Over Compliance \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nWe noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Dougherty County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6471-04-01. \nA 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 ofrisk that noncompliance with the applicable requirements of laws, 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. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~W.~ \nRussell W. Hinton State Auditor \nRWH:as 2004SA-30 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-01-01 FS-6471-02-01 FS-64 71-02-02 FS-6471-03-01 FS-6471-03-02 FS-64 71-03-03 \n \nFurther Action Not Warranted Further Action Not Warranted Further Action Not Warranted Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-6471-03-01 \n \nThe deficit in the Capital Projects-Regular Projects Funds occurred in prior years when the Federal Emergency Management Agency, the funding source for certain capital projects, deducted amounts equal to required insurance coverage from its reimbursements to the System for capital projects costs. The System was unaware of FEMA's insurance requirements in 1995; consequently, insurance proceeds totaling $1,015,000 for building damage incurred during the flood of 1994 were deposited into the General Fund. To resolve the deficit in the Capital Projects Funds, the Dougherty County Board ofEducation approved a plan to repay the amount of the insurance proceeds by transferring $203,000 from the General Fund to the Capital Projects Funds for five consecutive years beginning in fiscal year 2002. The remaining deficit of $406,000 will be funded in fiscal year 2005 and 2006. \n \nThe deficit fund balance for the General Fund is a result of the Child Nutrition Program incurring expenditures in excess ofavailable Child Nutrition funds. With assistance from the Georgia Department of Education, the Board is evaluating all aspects of the current Child Nutrition operations. The Board will take the necessary steps to resolve the funding deficiencies ofthe Child Nutrition Program while maintaining a high standard ofservice to the students of the Dougherty County School System. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCORRECTIVE ACTION/RESPONSES \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Finding Control Number: FS-6471-03-02 \nAlthough the Board has not limited the number of administrative staff in the schools, additional staffing for the purpose of segregating accounting functions is not practical due to limited funding. However, the Board will revise procedures and reassign accounting responsibilities in order to maximize compensating controls for the School Activity Accounts. In addition, the Board implemented a new School Activity accounting software program that will be used by all high schools and middle schools by the end of fiscal year 2006. The software program provides the central office internal auditor the ability to review each school's account activity online via the intranet. This will facilitate a more timely review of the operation of these accounts. \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayments Inadequate Personnel File Maintenance Inadequate Leave Records Finding Control Number: FS-6471-03-03 \nThe Board continues to develop new procedures to improve the processing of payroll information from the schools and through the Human Resources department. A procedure requiring a supervisory review of all special payroll calculations was implemented in fiscal year 2004. In addition, the Board has purchased a new Payroll accounting software program that will assist in providing more processing controls. The new accounting program is currently targeted for implementation on July 1, 2005. \nThe System is seeking current time and attendance software technology that will assist with the accurate recording, tracking and processing of employee leave at all sites. \n-2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-02-01 FA-6471-03-01 FA-6471-03-02 FA-6471-03-03 FA-6471-03-04 FA-6471-03-05 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Acton Implemented Previously Reported Corrective Acton Implemented Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COST/COST PRINCIPLES Improper Expenditure Amount: $47,740 Finding Control Number: FA-6471-03-01 \n \nThe expenditures questioned were paid by a Federal, special education funding source. These expenditures were determined to be improper due to insufficient supporting documentation. The expenditures were for repairs and maintenance to Dougherty County School System facilities which house the main operational site for the Oaktree Psychoeducational Center, and two other service sites. In addition to serving the students of Dougherty County, these sites also serve students from Lee, Terrell, Worth and Baker counties. The System is researching these expenditures and will submit appropriate documentation to the Georgia Department of Education for final resolution. \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COST/COST PRINCIPLES Inaccurate Indirect Cost Calculation Amount: $23,424 Finding Control Number: FA-6471-03-02 \n \nThe indirect costs questioned were calculated on the basis of a state fund indirect cost regulation, but were erroneously posted to a Federal fund. Both funds were funding sources for the Oaktree Psychoeducational Program. The Oaktree Program has sites in Albany, Arlington and Blakely that serve students with special needs in eight counties, including Dougherty, Lee, Terrell, Worth, Baker, Miller, Early and Calhoun. The system will document expenditures as they should have been reported and submit this information to the Georgia Department of Education for final resolution. \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES SPECIAL TESTS AND PROVISIONS Fiscal Requirements of School-wide Program Not Fully Implemented Finding Control Number: FA-6471-03-05 In fiscal year 2003, the year for which this finding was issued, the System was in compliance with the Georgia Department of Education's requirements regarding implementation ofthe Title I school-wide program. The Department ofAudits, however, determined that the state's requirements \"were in contrast with Federal requirements\" and directed the state and school systems to implement proper \"fiscal procedures for combining and allocating school-wide program expenditures to Federal programs\" by the end of fiscal year 2005. During fiscal year 2004, the School System sought the guidance of the Georgia Department of Education and fully implemented the state's recommended procedures in fiscal year 2005. The School System anticipates that this finding will be resolved in fiscal year 2005. Auditor's Note: The School District has implemented changes to resolve this finding in fiscal year 2005 and this finding will be shown as resolved in the fiscal year 2005 audit report. \n-4- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dougherty County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \nBudget Preparation/Execution Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts \n \nCash and Cash Equivalents Employee Compensation \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dougherty County Board of Education disclosed a reportable condition in internal control over major programs for the following compliance requirement. \n \nProgram Income \n \nThe reportable condition described above is not considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Dougherty County Board of Education's audit disclosed an audit finding required to be reported by section .51 0(a) of 0MB Circular A-133. This audit finding is included in section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $703,243. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nI SUMMARY OF AUDITOR'S RESULTS \n9. Low Risk Auditee The Dougherty County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-04-01 \nAt June 30, 2004, the General Fund and Capital Projects - Regular Projects Fund ofthe Dougherty County Board of Education reported deficit fund balances in the amount of $2,330,432 and $406,000, respectively which is considered to be an irregularity in accordance with O.C.G.A. 20-267. This condition occurred because management approved expenditures in excess of funds available in the General Fund and Capital Projects - Regular Projects Fund. The School District should establish appropriate policies and procedures designed to ensure that in future periods the School District does not report a deficit. \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-04-02 \nOur examination ofprincipal accounts disclosed weaknesses in internal control as discussed below: \nCash and Cash Equivalents (1) The bank reconciliation function was not separated from the record keeping and voucher payment functions. \nRevenues/Receivables/Receipts (1) Deposit preparation was not separated from the record keeping and cash custody Functions. \n(2) Receipts testing at one of the schools revealed, six deposits were not made in a timely manner, ten receipts lacking sufficient documentation, and one receipt not agreeing to the deposit slip by $10. \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-04-02 \nExpenditures/Liabilities/Disbursements (1) The check writing function was not separated from record keeping or processing ofsigned checks. \n(2) Nineteen voucher packages for two of the three schools tested, lacked approval of expenditures prior to checks being written. In addition, it was noted that at one of the three schools tested, checks were written out ofsequence, and one ofthe schools issued a signed blank check for the purchase of supplies for which no prior approval of the expenditure was noted. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and failure to ensure established controls were functioning as designed. Management should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization be segregated. Additionally, controls should be revised and monitored to provide reasonable assurance that transactions are processed to established procedures. \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayments Inadequate Leave Records Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-04-03 \nA sample offorty-two employee's payroll records was selected and examined to test for accuracy of payroll records of the Dougherty County Board of Education. The following deficiencies were noted: \n-3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayments Inadequate Leave Records Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-04-03 \nSalary Overpayments/Underpayments  The Board overpaid one employee a total of $1,313. The overpayment was the result of paying the employee based on the wrong years of experience. \n The Board underpaid two employees a total of $336. The underpayment was the result of paying the employees an incorrect hourly rate. \nInadequate Leave Records  Sick leave was incorrectly accrued and/or credited to ten employees' sick leave balances. \n Supporting documentation for sick leave could not be located or provided in a timely manner for ten employees. \nThese deficiencies occurred due to the School District's failure to adequately monitor administrative procedures regarding sick leave records. \nThe School District should implement procedures to ensure that all payroll disbursements are based on approved contracts, salary schedules and time worked. Leave records should be accurate and maintained in accordance with the School District's sick, personal and vacation leave policies. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nPROGRAM INCOME Inadequate Accounting Procedures Reportable Condition U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-6471-04-01 \nA review of accounting controls and procedures for catering activities administered by the School District's Child Nutrition Services revealed the following deficiencies: \n-4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nPROGRAM INCOME Inadequate Accounting Procedures Reportable Condition U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-6471-04-01 \n1. The invoicing for catering events were rarely recorded as accounts receivable on the general ledger or maintained in subsidiary records which makes it difficult to allow for proper tracking and collection of revenues. This was a deficiency noted both by billings done by the central office and those handled at individual school lunchrooms. \n2. All invoices, based on a sequential numbering system, could not be accounted for by the Board. \n3. Catering functions were not always billed or collected. A review of documentation indicated that no charge applied to some events or there was no indication ofan amount to be charged. \n4. There did not appear to be any standardized price list as to what to charge for meals and other incidentals. \n5. Expenditures for food and labor could not be readily identifiable for numerous catering events making it impossible to determine if the event provided sufficient funds to cover costs. \n6. Labor was often performed during normal school hours and these charges were absorbed by individual lunchroom accounts. \n7 CFR paragraph 210.14(a) requires that \"revenues received by the nonprofit school food service be used only for operation or improvement ofsuch food service... \". The effect ofthe above-mentioned deficiencies means that school food service funds are being used to support activities outside the scope of school food service programs. \nThese conditions are a result ofthe School District's failure to implement adequate internal controls for monitoring and accounting ofcatering activities. The School District should implement controls to ensure proper billing, recording and collection of all catering functions, as well as, accounting for all expenditures on an event-by-event basis in order to determine if the catering function is selfsupporting. \n-5 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2004 \nFinding Control Number: FS-6471-04-01 \nWe concur with this finding. The deficit in the Capital Projects - Regular Projects Funds occurred in prior years when the Federal Emergency Management Agency, the funding source for certain capital projects, deducted amounts equal to required insurance coverage from its reimbursements to the System for capital projects costs. The System was unaware ofFEMA's insurance requirements in 1995; consequently, insurance proceeds totaling $1,015,000 for building damage incurred during the flood of 1994 were deposited into the General Fund. To resolve the deficit in the Capital Projects Funds, the Dougherty County Board of Education approved a plan to repay the amount of the insurance proceeds by transferring $203,000 from the General Fund to the Capital Projects Funds for five consecutive years beginning in fiscal year 2002. The remaining deficit of $406,000 will be funded in fiscal year 2005 and 2006. \nThe deficit fund balance for the General Fund is a result of the Child Nutrition Program incurring expenditures in excess of available Child Nutrition Funds. With assistance from the Georgia Department of Education, the Board is evaluating all aspects of the current Child Nutrition operations. The Board will take the necessary steps to resolve the funding deficiencies ofthe Child Nutrition Program while maintaining a high standard of service to the students of the Dougherty County School System. \nFinding Control Number: FS-6471-04-02 \nWe concur with this finding. Although the Board has not limited the number of administrative staff in the schools, additional staffing for the purpose ofsegregating accounting functions is not practical due to limited funding. However, the Board will revise procedures and reassign accounting responsibilities in order to maximize compensating controls for the School Activity Accounts. In addition, the Board implemented a new School Activity accounting software program that will be used by all high schools and middle schools by the end of fiscal year 2006. The software program provides the central office internal auditor the ability to review each school's account activity online via the intranet. This will facilitate a more timely review of the operation of these accounts. \nFinding Control Number: FS-6471-04-03 \nWe concur with this finding. The Board continues to develop new procedures to improve the processing of payroll information from the schools and through the Human Resources Department. A procedure requiring a supervisory review of all special payroll calculations was implemented in fiscal year 2004. In addition, the Board has purchased a new payroll accounting software program that will assist in providing more processing controls. The new accounting program is currently targeted for implementation on July 1, 2005. \nThe System is seeking current time and attendance software technology that will assist with the accurate recording, tracking and processing of employee leave at all sites. \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2004 \nFinding Control Number: FA-6471-04-01 This finding agrees with the findings previously identified by the Dougherty Process Management internal audit team in fiscal year 2004. As ofNovember, 2004, catering activities were temporarily ceased until sufficient accounting procedures were developed. Beginning in February, 2005, catering activities were reinstated on a limited basis for certain schools and in-system catering functions. Procedures were enforced which provided for the separate reporting and proper identification of expenditures and revenues for all such activities. To ensure that all catering activities are selfsupporting, procedures requiring central office administration approval and review of proposed activities and budgets, as well as, central office control ofbillings for all catering activities was also implemented. All catering funds are maintained in a separate bank account from regular school food service activities. Contact Person: Robert Lloyd, Executive Director of Finance and Operational Services, Telephone: (229) 431-1234, Fax: (229) 438-3521 Email: robert.11oyd@dougherty.k12.ga.us \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2002-h2003","title":"Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2003-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2002-h2003"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n5 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n6 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n7 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n8 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n11 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n30 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n32 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n35 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nMarch 5, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Dougherty County Board of Education, as of and for the year ended June 30, 2003, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Dougherty County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm10ns. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Dougherty County Board of Education, as of June 30, 2003, 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. \n2003-34ARL-11 \n \n In accordance with Government Auditing Standards, we have also issued our report dated March 5, 2004, on our consideration of the Dougherty County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through xi and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dougherty County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24. \nRespectfully submitted, \n \nRWH:as 2003-34ARL-11 \n \n11).~ \nState Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the District's financial activities for the fiscal year ended June 30, 2003. The intent of this discussion and analysis is to present the District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the District's financial performance. \n \nFinancial Highlights \n \nFinancial highlights for 2003 are as follows: \n \n \n \nTotal net assets increased by $2.9 million. This represents a 1.76 percent increase from \n \nfiscal year 2002. This increase was due entirely to governmental activities since the \n \nDistrict has no business-type activities. \n \n \n \nTotal revenues were $143.8 million. General revenues, which include revenues from \n \nGeneral Funds, Capital Project Funds and the Debt Service Fund, accounted for $54.4 \n \nmillion, or 37.8 percent of this total. Program specific revenues, in the form of Charges \n \nfor Services, and Operating and Grants and Contributions, accounted for $89.4 million or \n \n62.2 percent of the total. \n \n \n \nThe District incurred $140.9 million in expenses related to governmental activities; \n \nhowever, $89.4 million of these expenses were offset by revenues from program specific \n \nCharges for Services, and Operating Grants and Contributions. General revenues \n \n(primarily taxes) of $54.4 million funded the balance of the remaining $51.5 million of \n \nexpenditures and the increase in net assets of $2.9 million referenced above. \n \n \n \nAmong major funds, the General Fund recorded $130.8 million in revenues and other \n \nfinance sources, and $135.4 million in expenditures and other financing uses. The \n \nGeneral Fund's fund balance decreased from $5.6 million to $1.0 million for a net \n \nreduction of $4.6 million. Contributing to this decrease in fund balance were: \"austerity \n \nreductions\" in state funding of $1.8 million, and a $0.3 million reduction in local \n \nrevenues due to the rollback of the millage rate from 17.7 mills to 17.55 mills. \n \n \n \nDuring fiscal year 2003 the District made final principal and interest payments on \n \nGeneral Obligation bonds issued in 1998 for various Capital Addition and Improvement \n \nprojects. At June 30, 2003 the District had no outstanding long-term bond indebtedness. \n \nUsing the Basic Financial Statements \n \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \n \n1 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nThese financial statements generally present the District's most significant funds both separately and with all funds combined. For the Dougherty County School District, the General Fund is by far the most significant fund. A brief discussion of these statements is presented below. \nDistrict-Wide Statements \nThe Statement of Net Assets and Statement ofActivities provide consolidated financial data for the large number of funds used by the District to monitor programs and activities. These consolidated statements give a summary view of all financial activities and assist the reader is assessing the financial position of the District as a whole for the fiscal year ending June 30, 2003. \nAll of the District's programs and activities included in the Statement of Net Assets and the Statement of Activities are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Net Assets and Statement of Activities report the District's net assets and changes to net assets. The change in net assets is significant because this change indicates whether the financial position of the District has improved or diminished. The reasons for the change in net assets may be the result of many factors, some financial, some not. Nonfinancial factors may include the District's property tax base, facility conditions, required educational programs, and other factors. The Statement of Net Assets reports the consolidated Assets, Liabilities, and Net Assets of the District as a whole. The Statement of Activities reports consolidated Revenues and Expenditures and the beginning and ending Net Assets of the District as a whole. \nFund Financial Statements \nThe Balance Sheet reports Assets, Liabilities, and Fund Balances for the General Fund, Districtwide Capital Project Funds, and the Debt Service Funds both separately and in total with all funds combined. \nThe Statement of Revenues, Expenditures and Changes in Fund Balances reports Revenues, Expenditures, and Other Financing Sources for the General Fund, District-wide Capital Project Funds, and the Debt Service Funds. It also reports the beginning, ending, and net change in fund balances for these groups of funds. This information is presented for each group both separately and in total. \n11 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nFund Types \nGovernmental Funds \nMost of the District's financial activities are reported in governmental funds. These funds record how money flows into and out of these funds in the current period, and the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a detailed short-term view of the District's general governmental operations and the basic services they provide. \nThis governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds \nThe District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The District excludes these fund activities from the district-wide financial statements because these fund assets cannot be used to finance operations. Fiduciary fund balances are reported on the Statement of Fiduciary Net Assets. Fiduciary Fund assets at June 30, 2003 were $93,630. \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2002 and fiscal year 2003. \nStatement of Net Assets \nAs previously mentioned, the Statement ofNet Assets presents consolidated financial data for the District as a whole. Table 1 provides a summary of the District's net assets for fiscal year 2002 and fiscal year 2003. \nl1l \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nTable 1 Net Assets (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2003 Year 2002 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 45,060 140,132 \n \n$ 55,523 132,494 \n \nTotal Assets \n \n$ 185,192 $ 188,017 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 17,838 223 \n \n$ 15,673 8,101 \n \nTotal Liabilities \n \n$ 18,061 $ 23,774 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ 140,132 27,781 -782 \n \n$ 130,989 27,125 6,129 \n \nTotal Net Assets \n \n$ 1671131 $ 164,243 \n \nTotal net assets increased $2.9 million in fiscal year 2003. \n \nStatement of Activities \n \nTable 2 shows the changes in net assets for fiscal year 2002 and fiscal year 2003 as reported on the Statement ofActivities. \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nTable 2 Change in Net Assets \n(in Thousands) \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Special Items Gain on Sale of Building Gain on Sale of Land \nTotal General Revenues \nTotal Revenues \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General and School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central and Other Support Services Operations of Non-Instructional Services Enterprise Operations Communio/ Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2003 Year 2002 \n \n$ 2,052 87,370 \n$ 89,422 \n \n$ 2,241 93,101 893 \n$ 96,235 \n \n$ 32,710 36 \n \n$ 31,339 40 \n \n7,987 7,445 \n451 74 \n4,126 -890 2,417 \n$ 54,356 \n$ 143,778 \n \n3,979 11,496 \n480 78 \n6,175 1,038 2,607 \n329 389 \n$ 57,950 \n$ 154,185 \n \n$ 86,521 \n5,324 5,022 3,259 9,875 1,679 10,760 5,014 2,244 \n590 951 9,413 238 \n$ 140,890 \n$ 2,888 \n \n$ 90,608 \n4,986 4,799 3,639 10,232 1,829 9,808 4,859 2,274 \n477 861 8,363 593 \n$ 143,328 \n$ 10,857 \n \nV \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nGovernmental Activities \n \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for both fiscal year 2002 and fiscal year 2003. This information is presented on the Statement of Activities. \n \nFor fiscal year 2003, Instructional activities comprised 61.40 percent of the total governmental program cost of services. Support Services comprised 30.65 percent, Non-instructional services comprised 7.78 percent, and Interest expense comprised .1 7 percent. Interest expense was attributable to the outstanding bonds issued for capital project expenditures. \n \nTable 3 Governmental Activities \n(in Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear2003 Year2002 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear2003 Year2002 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 86,521 \n5,324 5,022 3,259 1,334 8,541 1,679 10,760 5,014 2,215 \n29 \n590 951 9,413 238 \n \n$ 90,608 \n4,986 4,799 3,639 1,524 8,708 1,829 9,808 4,859 2,203 \n71 \n477 861 8,363 593 \n \n$ 24,184 \n3,269 1,921 1,660 -546 5,339 1,679 6,333 2,828 2,012 \n4 \n590 881 1,076 238 \n \n$ 21,355 \n3,193 2,239 1,789 -700 5,315 1,829 5,320 2,535 2,203 \n43 \n454 638 287 593 \n \nTotal Expenses \n \n$140,890 $143,328 $ 51,468 $ 41,093 \n \nAlthough program revenues make up the majority of total revenues, the District is still dependent upon tax revenues for governmental activities. Over 27.9 percent of instruction activities are supported through taxes and other general revenues. For all governmental activities, general revenue support is 36.5 percent. \n \nThe District's Funds \n \nAs reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances, total governmental funds recorded revenues and other financing sources of $144.8 million and expenditures and other financing uses of $156.6 million. The combined decrease in Fund Balances for the General Fund and the Capital Project Funds was $11.8 million. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nTotal expenditures for the Capital Project Funds were $1.3 million lower than in fiscal year 2002. However, there were several transactions that negatively impacted the fiscal year 2003 fund balance. During fiscal year 2003, the school district paid $1.4 million to the IRS for arbitrage associated with the 1998 bond issuance. This payment resulted in a negative investment earnings balance. Actual total fiscal year 2003 earnings on investments were $0.4 million less than fiscal year 2002. This reduction in investment earnings was primarily due to lower interest rates. The District also reimbursed FEMA and GEMA for disqualified costs incurred in the rebuilding of facilities following the flood of 1994. This payment of $1.0 million resulted in negative revenue balances for state and federal funds. \nA portion of the decrease in fund balance for the Capital Project Funds can be attributed to the change in the reporting of sales tax revenues for the year. In the financial report for fiscal year 2001, special purpose local option sales tax (SPLOST) revenues equal to the amount of the first debt payment for fiscal year 2002 were allocated and reserved in the Debt Service Fund. In fiscal year 2002 the allocation of revenues for the first debt payment in fiscal year 2003 was not recorded. Therefore, when comparing sales tax revenues reported in Table 2, the fiscal year 2002 revenue allocated to debt service is $4.0 million less than the allocation for fiscal year 2003. The difference is equal to the amount of one debt payment. Conversely, the amount of sales tax revenues allocated to capital projects is greater by the same amount. This resulted in an additional decrease in fund balance for the Capital Project Funds in fiscal year 2003. \nFund Balance for the General Fund decreased $4.6 million. Approximately $1.0 million of the decrease in fund balance is due to Child Nutrition Service operations. Total Child Nutrition Service revenues increased approximately 6 percent while expenditures increased approximately 12 percent. Although state and federal reimbursements for meals increased approximately 4 and 5 percent respectively, student meal participation levels decreased steadily throughout the year from 67 percent to 48 percent. The most significant increases in expenditures occurred in the areas of salaries and benefits for lunchroom personnel, and costs for food and equipment purchases. The increase in equipment expenditures included $0.2 million for the setup and leasepurchase costs of a new Child Nutrition Service accounting system. Other salaries and benefits increased as a result of Child Nutrition Services assuming the cost of warehouse support personnel as of January 2003. The costs of these additional personnel were approximately $0.1 million. \nAdministration is examining all Child Nutrition Service activities to identify potential labor, food, and supply cost savings. Emphasis will continue to be given to increasing student meal participation in all schools. \nThe remaining decrease in fund balance is due to general operations. With the initial adoption of the fiscal year 2003 budget, the District anticipated utilizing $0.8 million of the available fund balances to complete the fiscal year. Shortly thereafter, the District voted to roll back the millage rate by .15 mills, thereby reducing revenues and available fund balances by an additional $0.3 million. Although both revenues and expenditures decreased substantially versus fiscal year 2002, expenditures exceeded revenues by $4.3 million in fiscal year 2003. This was primarily \nVll \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \ndue to decreases in state revenues that could not be absorbed through corresponding reductions in expenditures within the fiscal year. To recover fund balance reserves, the District voted to increase local ad valorem taxes by 1.45 mills for fiscal year 2004. This is expected to generate approximately $2.7 million in additional revenues. Further cost reductions in excess of $2.0 million were also identified and implemented. \nGeneral Fund Budgeting Highlights \nThe District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. During the course of fiscal 2003, the District amended its general fund budget as needed. The District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. \nFor the General Fund, the final budgeted revenues and other financing sources of $131.6 million exceeded the original budgeted amount of $124.7 million by $6.9 million. This difference was primarily due to an increase in state revenues budgeted of $1.6 million, and an increase in federal revenues budgeted of $3.9 million. Actual revenues and other financing sources of $129.9 million were $1.7 million below the final budgeted amount. \nThe final budgeted expenditures and other financing uses of $133.9 million exceeded the original budgeted amount of $125.8 million by $8.1 million. This difference was primarily due to an increase in budgeted Instructional expenditures of $5.9 million, and an increase in budgeted Support Services expenditures of $2.0 million for Support Service activities. Actual expenditures and other financing uses of $134.5 million exceeded the final budgeted amount by $0.6 million. \nCapital Assets and Debt Administration \nCapital Assets At the end of fiscal 2003 the District had $140.1 million invested in capital assets. All of these assets were in governmental activities. Table 4 shows fiscal year 2002 and fiscal year 2003 balances. \nVlll \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \n \nTable 4 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2003 Year 2002 \n \nLand Construction in Progress Buildings and Building Improvements Equipment \n \n$ 9,084 8,010 \n118,352 4,686 \n \n$ 9,025 24,838 94,039 4,592 \n \nTotal \n \n$ 140,132 $ 132A94 \n \nCapital Assets increased by $7.6 million versus fiscal year 2002. The primary increases occurred in Buildings and Building Improvements. This increase was primarily due to the completion of two new middle schools, and the completion of Athletic Field Houses at two of the high schools. As shown, the completion of these projects resulted in a decrease in the Construction in Progress category. \n \nDebt \n \nTable 5 summarizes the long-term debt outstanding at June 30 for fiscal year 2002 and fiscal year 2003. \n \nTable 5 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2003 Year 2002 \n \nGeneral Obligation Bonds Claims Payable - Workers' Compensation \n \n$_~22~3 \n \n$ 7,750 351 \n \nTotal \n \n$====2=\"2'=3 $ 8,101 \n \nAs previously noted, during fiscal year 2003 the District retired the balance of the General Obligation Bonds outstanding at June 30, 2002. \n \nThe Dougherty County School District is self insured for Workers' Compensation claims. The Claims Payable for Workers' Compensation shown above represents estimated reserves for payments of existing claims at June 30, 2003. \n \nlX \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nCurrent Issues \nIn 1997, the first Special Purpose Local Option Sales Tax for educational purposes (SPLOST) was initiated by the citizens of Dougherty County. This 1% sales tax generated approximately $84 million which was used for facility improvements and significant upgrades to instructional and athletic facilities. \nIn March 2002, voters in Dougherty County approved the continuation of this 1% sales tax. This Sales Tax for Educational Purposes (STEP II) will generate up to $95 million over the next five years and will fund the continuation of major renovation and new construction projects. In February 2004, the District issued General Obligation Sales Tax Bonds in the amount of $25 million. This will facilitate the continuation of an aggressive capital improvement program, which will include the building of three new elementary schools. There will also be substantial expenditures for renovations for instructional improvements, technology, and for safety and security for schools and other facilities. \nA current concern of the Dougherty County School District has been the recent lack of growth in the local tax digest. For the five years prior to 2003, the increase in local tax revenues from ad valorem taxes increased an average of $1.2 million per year. In 2002 the local digest increased by 3.76 percent; however, virtually all of this increase was due to the revaluation of properties. In 2003 the digest declined by 1.58 percent. This is significant in that approximately one-third of General Fund revenues come from ad valorem taxes. The digest is not expected to grow significantly over the next several years. Compounding this problem has been the reduction in state funding resulting from the downturn in the state economy. Declining state revenues have resulted in substantial reductions in state funding for school systems and other state agencies. The reduction in the local tax base combined with the reduction in state funding required the District to increase the millage rate for the first time since 1994 to fund the fiscal year 2004 budget. \nAnother factor that has adversely affected funding has been the gradual decline in student enrollments. Virtually all state funding is directly related to the number of students served. Student enrollments in Dougherty County have declined in eight of the past nine years. However, based on more recent FTE counts, indications are that student enrollments will increase slightly for fiscal year 2005. This will have a favorable effect on state funding in future periods. \nThe adverse funding circumstances mentioned above have required the District to reduce expenditures and seek additional sources of revenue. Expenditure reductions include the review of staffing assignments that seek to maximize class sizes in compliance with state guidelines, and eliminating all nonessential expenditures. To date, reductions in spending have been accomplished with no adverse effect on instructional programs. \nIn an effort to identify and obtain additional funding, the District has appointed existing staff members and consultants to serve as grant writers. It is anticipated this will generate significant additional funding to implement new instructional programs, and help assure the continuation of existing programs. \nX \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 Contacting the Board's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the District's finances, and to document the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Robert Lloyd, Executive Director of Business \u0026 Operations, at the Dougherty County Board of Education, 200 Pine Avenue, Albany, Georgia 31701. You may also e-mail your questions to robert.lloyd@dougherty.kl2.ga.us \nXI \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2003 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Inventories Capital Assets Land Construction in Progress Buildings and Improvements Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets Restricted for \nBus Replacement Continuation of Federal Programs Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n673,887 \n \n26,859,853 \n \n4,221,932 9,093,996 2,643,486 \n494,139 190,888 882,082 \n \n9,083,876 8,009,689 193,418,503 13,255,629 -83,635, 788 \n \n$ ===1=85=,1=9=2,=17=2= \n \n$ \n \n4,518,802 \n \n11,746,639 \n \n876,484 \n \n693,939 \n \n2,561 \n \n102,244 120 548 \n \n$ \n \n18 061 217 \n \n$ \n \n140,131,909 \n \n438,433 585,056 26,757,418 -781 861 \n \n$ \n \n167,130,955 \n \n$ ===1=85='=19=2=1,=72= \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30. 2003 \n \nEXHIBIT\"B\" \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR \n \nGRANTS AND \n \nSERVICES \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 86,520,495 $ \n5,323,876 5,021,539 3.258,567 1,334,388 8,541,288 1,678,721 10,760,198 5,013,649 2,214,502 \n29,301 \n590,300 951,167 9,413,348 238 381 \n \n618,251 $ 1,433,486 \n \n61,718,565 $ \n2,055,048 3,100,048 1,598,673 1,880,540 3,202,509 \n4,427,032 2,185,265 \n202,320 25,328 \n70,631 6,903,815 \n \n-24, 183,679 \n-3,268,828 -1,921,491 -1,659,894 \n546,152 -5,338,779 -1,678,721 -6,333,166 -2,828,384 -2,012,182 \n-3,973 \n-590,300 -880,536 -1,076,047 -238 381 \n \nTotal Governmental Activities \n \n$ 140,889,720 $ \n \n2 051 737 $ \n \n87 369 774 $ _ _ _-_5_1~4_68~,_20_9_ \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n$ \n \n32,710,198 \n \n36,423 \n \n7,986,565 7,445,031 \n451,003 74,409 \n4,125,959 -890,198 \n2417 052 \n \nTotal General Revenues \n \n$ _ _ _5_4~3_5~6~44_2_ \n \nChange in Net Assets \n \n$ \n \n2,888,233 \n \nNet Assets - Beginning of Year \n \n164 242 722 \n \nNet Assets - End of Year \n \n$ ===16.7...1=3='0..,95=5= \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2003 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,495,314 $ \n \n$ 3,294,354 \n \n23,565,499 \n \n1,744,304 9,093,996 2,643,486 \n485,965 190,888 882,082 \n \n2,649,854 8,174 \n \n1,458 $ 1,496,772 \n26,859,853 \n4,394,158 9,093,996 2,643,486 \n494,139 190,888 882,082 \n \n$ 18,335,075 $ 27,718,841 $ \n \n1 458 $ 46,055,374 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Claims Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Inventories Capital Projects Private Sources \nUnreserved Designated for Self-Insurance Undesignated Reported in: Debt Service Deficit Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ \n \n822,885 \n \n4,518,802 \n \n11,746,639 \n \n222,792 \n \n$ \n \n2,561 \n \n876,484 693,939 \n \n$ 17,313,679 $ 1,570,423 \n \n$ \n \n822,885 \n \n4,518,802 \n \n11,746,639 \n \n222,792 \n \n876,484 \n \n693,939 \n \n2,561 \n \n$ 18,884,102 \n \n$ \n \n438,433 \n \n882,082 \n \n$ 26,757,418 \n \n168,955 \n \n1,220,203 \n \n$ \n \n-1,688,277 \n \n-609,000 \n \n$ 1,021,396 $ 26,148,418 $ \n \n$ \n \n438,433 \n \n882,082 \n \n26,757,418 \n \n168,955 \n \n1,220,203 \n \n1,458 \n \n1,458 \n \n-1,688,277 -609,000 \n \n1,458 $ 27,171,272 \n \nTotal Liabilities and Fund Balances \n \n$ 18,335,075 $ 27,718,841 $ \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n1 458 $ 46,055,374 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30. 2003 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year end but are not available soon enough to pay for the current period's expenditures. \n \n$ 27,171,272 \n \n$ \n \n9,083,876 \n \n8.009,689 \n \n193,418,503 \n \n13,255,629 \n \n-83,635,788 \n \n140,131,909 \n \n-172,226 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 167,130,955 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2003 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nInsurance Proceeds Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 33,145.792 \n \n$ 33.145,792 \n \n525,412 $ 7,445,031 $ 7,986,565 \n \n15,957,008 \n \n73,467,917 \n \n-103,276 \n \n73,364,641 \n \n19,307,167 \n \n-934,644 \n \n18,372,523 \n \n2,051,737 \n \n2,051,737 \n \n132,774 \n \n-1,023,717 \n \n745 \n \n-890, 198 \n \n2,176,153 \n \n131,367 \n \n2,307,520 \n \n$ 130,806,952 $ 5,514,761 $ 7,987,310 $ 144,309,023 \n \n$ 83,196,285 \n \n$ 83,196,285 \n \n5,315,226 4,962,851 3,081,800 1,330,089 8,340,974 \n1,591,150 $ \n10,322,357 4,154,342 2,245,445 29,301 586,290 951,167 8,948,147 2,421 \n \n45,902 356,854 \n12,870,124 \n \n5,315,226 4,962,851 3,081,800 1,330,089 8,340,974 1,637,052 10,679,211 4,154,342 2,245,445 \n29,301 586,290 951,167 8,948,147 12,872,545 \n \n$ 7,750,000 238,381 \n \n7,750,000 238,381 \n \n$ 135,057,845 $ 13,272,880 $ 7,988,381 $ 156,319,106 \n \n$ -4,250,893 $ -7,758,119 $ \n \n-1 071 $ -12,010,083 \n \n$ \n \n17,302 $ \n \n142,320 \n \n315,568 \n \n-324,213 \n \n$ \n \n-306,911 $ \n \n457,888 \n \n$ -4,557,804 $ -7,300,231 $ \n \n5,579,200 \n \n33,448,649 \n \n$ \n \n159,622 \n \n315,568 \n \n-324,213 \n \n$ \n \n150,977 \n \n-1,071 $ -11,859,106 \n \n2,529 \n \n39,030,378 \n \nFund Balances - Ending \n \n$ \n \n1,021,396 $ 26,148,418 $===1=45=8= $ 27,171,272 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2003 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the gain on the sale of the building and equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the building and equipment sold. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ -11,859, 106 \n \n$ 11,126,014 -3.446,628 \n \n7,679,386 -640,602 \n \n-41,445 \n \n7,750,000 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ ==2=,8=8=8=,2=33= \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2003 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nOther \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \n \nAGENCY FUNDS \n \n$ \n \n57,186 \n \n36,444 \n \n$ ===9=3=!=,6=3=0 \n \n$ ===9=3=,6=30= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dougherty County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and Special Purpose Local Option Sales Tax proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, and claims and \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \njudgments, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2002 and ending in early June 2003. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2002 and ending in August 2003. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit costs and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dougherty County Board of Commissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on September 12, 2002 (levy date). Taxes were due on December 20, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2002 tax digest are reported as revenue in the governmental funds for fiscal year 2003. The Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1 % oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2003, for maintenance and operations amounted to $33,109,369. \n \nThe tax millage rate levied for the 2002 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.55 mills \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $15,431,596 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (weighted average). 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. \nCONSUMABLE SUPPLIES On the basic financial statements, consumable supplies are reported at cost (weighted average). The School District uses the consumption method to account for the consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2003, are recorded as prepaid items. \nCAPITAL ASSETS \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals where no historical records exist. Donated capital assets are recorded at fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30. 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand and Land Improvements Buildings and Improvements Equipment \n \nAny Amount \n \n$ \n \n5,000 \n \n$ \n \n5,000 \n \nNIA 20 to 80 years 4 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nDEFICIT FUND BALANCES \n \nFunds reporting a deficit fund balance and deficit net assets at June 30, 2003, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGovernmental Fund Type General Fund \nGovernmental Fund Type Capital Projects Fund \n \n$ 1,688,277 $ 609,000 \n \nThe fiscal year 2003 total General Fund unreserved, undesignated deficit fund balance of$ l,688,277 is comprised of a $0.6 million deficit from general operating activities and a $1.1 million deficit from school food services activities. To recover unreserved, undesignated fund balances for general operating activities, the School District voted to increase the local ad valorem tax by 1.45 mills to provide additional tax revenues ofapproximately $2.7 million for fiscal year 2004. The Board also identified an additional $2.0 million in cost savings for fiscal year 2004. Administration is examining all school food service activities to identify potential savings in labor, food and supply costs. Focus will continue to be given to increasing student meal participation in all schools. \n \nDuring fiscal year 2001, the Dougherty County Board of Education approved the plan to fund the deficit in the Capital Projects - Regular Projects Funds by transferring $203,000 from the General Fund to the Capital Projects Fund each year for five years. As ofthe date ofthis report, transfers for fiscal years 2002, 2003 and 2004 have been completed. Transfers will continue to be made for fiscal year 2005 and 2006 until the deficit is fully funded. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $4,907,710. The amounts of the total bank balances are classified into three categories of credit risk: \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 580,407 \n \n2 \n \n0 \n \n3 \n \n4,327,303 \n \nTotal \n \n$ 4,907.710 \n \nCATEGORlZATION OF INVESTMENTS At June 30, 2003, the carrying value of the School District's total investments was $26,859,853 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 of Georgia, 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. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not 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 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, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nagreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2003, was 30 days. The average investment duration for Fund 6 on June 30, 2003, was 0.39 years. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2002 \n \nIncreases \n \nBalances Decreases June 30, 2003 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,025,404 $ \n \n58,472 \n \n$ 9,083,876 \n \n24,837,538 \n \n7,258,959 $ 24,086,808 \n \n8,009,689 \n \nTotal Capital Assets Not Being Depreciated $ 33,862,942 $ 7,317,431 $ 24,086,808 $ 17,093,565 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \n \n$ 166,624,824 $ 26,857,305 $ \n \n12,595,106 \n \n1,038,086 \n \n63,626 $ 193,418,503 377,563 13,255,629 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n72,585,917 8,002,987 \n \n2,520,347 926,281 \n \n39,995 359,749 \n \n75,066,269 8,569,519 \n \nTotal Capital Assets, Being Depreciated, Net $ 98,631,026 $ 24,448,763 $ \n \n41445 $ 123,038,344 \n \nGovernmental Activity Capital Assets - Net $ 132.493.968 $ 31.766,194 $ 24,128.253 $ 140,131.909 \n \nCurrent year depreciation expense by function is as follows: \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Enterprise Operations Food Services \n \n$ 2,061,949 \n \n$ \n \n5,347 \n \n36,276 \n \n109,262 \n \n2,657 \n \n123,817 \n \n25,756 \n \n75,709 \n \n541,399 \n \n33,331 \n \n2 479 \n \n956,033 428,646 \n \n$ 3,446,628 \n \nNote 6: RESTRICTED ASSETS \n \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, 2003, were as follows: \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nRestricted Cash and Cash Equivalents: Capital Acquisitions \nRestricted Investments: Capital Acquisitions \n \n$ 1,322,148 $ $ 22,824,328 $ \n \n782,166 741,171 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2003, consisted of the following: \n \nTransfer to \n \nTransfers From General Fund \n \nDistrict-wide Capital Projects All Others \n \n$ 315,568 8 645 \n \nTotal \n \n$=====3==24-,2=1eae,3 \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30. 2003 \n \nEXHIBIT\"H\" \n \nNote 7: INTERFUND TRANSFERS \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund to correct deficit in the Capital Projects Fund. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nFor the current fiscal year, due to the costs of available coverage, the School District significantly reduced property coverage for Federal terrorism. \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $250,000 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2002 2003 \n \n$ \n \n92.595 $ \n \n708 477 $ \n \n450.332 $ \n \n350.740 \n \n$ \n \n350.740 $ \n \n419.254 $ \n \n547.202 $ \n \n222.792 \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2002 2003 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ \n \n14 449 $ \n \n13,782 $ \n \n28,231 $ \n \n0 \n \n$ \n \n0 $ \n \n32,984 $ \n \n32,984 $ \n \n0 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ 100,000 $ 250,000 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$=====0 $9,500,000 $ 9,500,000 $=====0 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 10: LONG-TERM DEBT \n \nVoters authorized $25,000,000 in general obligation debt for acquisition, construction and equipping of capital outlay projects as of June 30, 2003. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \n \nGovernmental Funds \n \nGeneral \n \nClaims \n \nObligation \n \nPayable \n \nBonds \n \nTotal \n \nBalance July 1, 2002 \n \n$ 350,740 $ 7,750,000 $ 8,100,740 \n \nAdditions Claims and Changes in Estimates \n \n419,254 \n \n419,254 \n \nDeductions Debt Retired Claims Paid \n \n547,202 \n \n7,750,000 \n \n7,750,000 547,202 \n \nBalance June 30, 2003 \nPortion of Long-Term Debt Due within One Year \n \n$ 222,792 $====0 $==2==22\"\"\".7===9==2 $ 102,244 $_ _ _ _0 $_~10~2,~24~4 \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and costs in the amount of$1,476,047 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $1,236,983 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $239,064 \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 12: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2003: \n \nProject \n \nUnearned Executed Contracts \n \nBond Projects SPLOST Projects \n \n$ \n \n74,329 \n \n1,948,187 \n \n$ 2,022.516 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 14: RETIREMENT PLANS \nFiscal Year \n2003 2002 2001 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 6,901,145 $ 6,536,755 $ 7,915,385 \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under} Expenditures \nOTHER FINANCING SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses} \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS (1} \n \n$ \n \n33,337,900 $ \n \n33,337,900 $ \n \n33,145,792 \n \n85,000 \n \n85,000 \n \n525,412 \n \n72,960,848 \n \n74,520,917 \n \n73,467,917 \n \n14,397,094 \n \n18,253,111 \n \n19,307,167 \n \n1,829,721 \n \n2,040,447 \n \n1,987,861 \n \n160,000 \n \n160,000 \n \n120,736 \n \n776 774 \n \n2,009,018 \n \n1,342,298 \n \n$ \n \n123,547,337 $ \n \n130,406,393 $ \n \n129,897,183 \n \n$ \n \n75,924,463 $ \n \n81,779,436 $ \n \n83,161,440 \n \n4,549,385 4,732,331 3,014,796 1,751,228 7,785,865 1,940,213 9,934,893 4,193,341 2,118,060 \n26,597 326,700 773,480 8,169,616 \n \n4,906,777 5,432,701 3,289,131 1,711,949 7,929,443 1,781,524 10,361,225 4,268,356 2,282,208 \n41,787 555,991 870,976 8,181,616 \n2 430 \n \n5,206,968 4,962,851 3,005,833 1,330,089 7,748,045 1,591,150 10,293,240 4,154,342 2,245,445 \n29,301 586,290 951,167 8,931,172 \n2421 \n \n$ \n \n125,240,968 $ \n \n133,395,550 $ \n \n134,199,754 \n \n$ \n \n-1,693,631 $ \n \n-2,989,157 $ \n \n-4,302,571 \n \n$ \n \n1,187,000 $ \n \n1,196,147 $ \n \n-549180 \n \n-549 180 \n \n$ \n \n637,820 $ \n \n646 967 $ \n \n$ \n \n-1,055,811 $ \n \n-2,342,190 $ \n \n233,422,027 \n \n233,422,027 \n \n12,240,245 \n \n12,240,245 \n \n17,302 -324,213 -306 911 -4,609,482 \n5,260,260 \n \nFund Balances - Ending \n \n$ \n \n244,606.461 $ \n \n243,320,082 $====65=0=1=7=7=8 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual (1) Actual amounts have been adjusted to exclude the governmental activity from the various principal accounts. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) \nTotal U. S. Department of Agriculture \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Ed.ucation Act Part B - Special Education Flow Through Georgia Learning Resources System Preschool Severely Emotionally Disturbed Special Project - High School/High Tech Capacity Building Improvement Capacity Building - GLRS Capacity Building - SEO \nTotal Special Education Cluster \nOther Programs Direct Impact Aid Pass-Through From Chattahoochee-Flint Regional Educational Service Agency d/b/a Two Rivers Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies School Improvement Title II Eisenhower Professional Development Enhancing Education Through Technology Improving Teacher Quality Title VI Innovative Education Program Strategies Individuals with Disabilities Education Act Special Education PartB State Program Improvement Grants for Children with Disabilities Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nNIA \n \nN/A \n \n$ \n \n$ \n \n(2) 9 064 033 (3) \n9,064,033 \n \n10.550 \n \nN/A $ \n \n342 313 9406 346 \n \n94.004 \n \nNIA \n \n$ \n \n750 \n \n84.027 84.027 84.173 84.027 84.027 84.027 84.027 84.027 \n84.041 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nNIA \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \n$ \n \n1,892,359 142,544 123,195 194,346 96,247 (3) 60,787 48,245 15 000 \n2,572,723 \n \n(4) \n \n84.011 \n \nNIA \n \n84.010 \n \nN/A \n \n84.010 \n \nN/A \n \n84.281 \n \nN/A \n \n84.318 \n \nNIA \n \n84.367 \n \nN/A \n \n84.298 \n \nN/A \n \n84.323 \n \nN/A \n \n84.186 \n \nN/A \n \n84.048 \n \nN/A \n \n10,995 (3) \n6,978,943 57,403 86,535 \n428,267 1,374,210 \n156,489 \n41,364 127,128 \n247,388 \n \n-28- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nEducation. U. S. Department of Other Programs Pass-Through From Georgia Department of Human Resources Safe and Drug Free Schools and Communities \nTotal U.S. Department of Education \nFederal Emergency Management Agency Pass-Through From Office of the Governor Disaster Assistance \nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Child Care School Age Program \nLabor, U. S. Department of Pass-Through From Southwest Georgia Regional Educational Development Center Workforce Investment Act Service Learning Youth (YETP) Providing Rewarding Youth Achievement Services (RYA) \nTotal U.S. Department oflabor \nDefense, U. S. Department of Direct Department o the Air Force R.O.T.C. Program Department of the Marine Corps R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n84.186 83.516 \n \nN/A \n \n$ _ _ _--'2=5'-'-'0=-=0=-0 \n \n$ _ ___;_1=,2...:..10=-:6:.,...4.:...4=5 \n \nN/A \n \n(6) \n \n93.525 \n \nN/A \n \n$ \n \n25 101 (3) \n \n17.249 17.255 \n17.998 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \n64,096 76,059 \n193 234 \n \n$ _ _ _--=33:;.:3;.c:,3:.::8-=-9 \n \n(5) (5) \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n$ ===2d1,..87=2:!.0=3=1 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,010,596) were not maintained separately and are included in the 2003 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \n(4) Funds earned on the Impact Aid program, in the amount of $241,431, do not require reporting of expenditures. (5) Expenditures on this program were not maintained by fund source. Expenditures for this program were supported by $129,499 \nin Federal assistance ($45,839 Air Force ROTC and $83,660 Marine Corps ROTC) and the balance from State, and/or local funds. (6) A refund of Disaster Assistance Funds, in the amount of $934,644, was made for grant expenditures disallowed in prior years. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the basic financial statements. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Education. Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Apprenticeship Program Georgia Learning Resources System Health Insurance K-3 Statewide Reading Program K-3 Statewide Reading Program - SED 4-8 Statewide After School Program National Teacher Certification Preschool Handicapped Program Severely Emotionally Disturbed Lottery Programs Assistive Technology Computers in the Classroom Post Secondary Options Student Information System Grant \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n5,076,200 \n \n336,778 \n \n11,494,665 \n \n902,412 \n \n5,266,545 \n \n651,110 1,338,163 7,629,922 6,597,056 1,640,558 \n \n458,929 3,135,935 2,982,579 \n431,174 90,115 \n1,037,324 445,605 637,001 43,184 \n1,462,598 483,947 281,423 \n \n1,484,602 3,078,395 4,191,648 \n \n1,675,446 359,173 320,019 62,790 67,498 98,445 \n4,118,935 478,968 99,919 \n-1,793,568 \n47,500 90,112 1,236,983 238,424 11,400 164,215 \n3,531 235,907 2,137,994 \n25,039 345,408 \n4,522 102,212 \n \n$ \n \n5,076,200 \n \n336,778 \n \n11,494,665 \n \n902,412 \n \n5,266,545 \n \n651,110 1,338,163 7,629,922 6,597,056 1,640,558 \n \n458,929 3,135,935 2,982,579 \n431,174 90,115 \n1,037,324 445,605 637,001 43,184 \n1,462,598 483,947 281,423 \n \n1,484,602 3,078,395 4,191,648 \n \n1,675,446 359,173 320,019 62,790 67,498 98,445 \n4,118,935 478,968 99,919 \n-1,793,568 \n47,500 90,112 1,236,983 238,424 11,400 164,215 \n3,531 235,907 2,137,994 \n25,039 345,408 \n4,522 102,212 \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Georgia Institute of Technology Student Information System Grant \nOffice of the Governor Governor's Emergency Fund Georgia Challenge Program \nOffice of School Readiness Pre-Kindergarten Program \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of After School Programs Foreign Language Model Program \nNorthwest Georgia Regional Educational Service Agency Georgia's Choice \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n85,177 \n \n$ \n \n85,177 \n \n$ 25,000 \n \n-103,276 \n \n-103,276 25,000 \n \n973,297 \n \n973,297 \n \n239,064 \n \n239,064 \n \n11,766 153,906 \n670,967 \n \n11,766 153,906 \n670,967 \n \n$ \n \n73 467 917 $ \n \n-103,276 $ 73,364,641 \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30 2003 \n \nSCHEDULE \"4\" \n \nPROJECTS \nThe acquisition, construction and equipping of six new elementary physical education facilities, two new middle schools, supply services freezer, completion of expansion program at five schools, roof replacement on 24 buildings, technology power upgrade on 30 buildings, ceilings and lights in 27 buildings, HVAC upgrades on 24 buildings, four new high school field houses, three support facilities for new elementary schools, renovation of McIntosh Teacher Academy, renovation of five schools, Highland conversion, underslab plumbing replacement in 17 buildings, asbestos removal at 48 sites, lawn revitalization at 30 sites, facilities department shops, tower, media service center, security lighting at 28 sites, sports field lighting at four sites and 41 new vehicles, including the acquisition of all necessary property, the maximum cost of such projects not to exceed $88,653,060.00. \nThe acquisition, construction and equipping of three elementary schools, renovation and improvements of one middle school, renovation and improvements of four high schools, renovation and improvements of five elementary schools, provision of gifted, special education and alternative education sites, capital funding necessary for compliance with Individuals with Disabilities Education Act (IDEA) for children with disabilities, renovation of existing school buildings, four Pre-K facilities in each of four quadrants in the Dougherty County School System, additional technology (hardware and software), including teacher and student classroom computers, peripheral devices and wiring, mobile wireless computer labs, accessory support technology, wireless connectivity for portable classrooms and technology associated with distance and foreign language labs, safety equipment including, but not limited to, upgrading locks on all school buildings, installation of cameras and other devices on schools and school buses and security/attendance card system, upgrade of school vehicles and maintenance equipment, funding certain financing and project management cost for implementation of capital programs funded through SPLOST 11, the maximum cost of such projects not to exceed $95,000,000. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR(3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n$ 88,653,060 $ 102,229,305 $ 12,442,473 $ 88,389,879 Ongoing \n \n95,000,000 \n \n95,000,000 \n \n579,232 \n \nOngoing \n \n13,021,705 $ 88,389,879 \n \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"4\" \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest expense to provide advance funding for the above projects as follows: \n \nPrior Year \n \n$ 4,231,743 \n \nCurrent Year \n \n238,381 \n \nTotal \n \n$ ===-4.4..7...0\"=1=2=4 \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBEl \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n5.826.185 $ 5.643.758 $ \n \n72,798 $ \n \n5,716,556 \n \n406.817 \n \n369,068 \n \n2,316 \n \n371,384 \n \n13,260,439 11,634,665 \n \n421.405 \n \n12,056,070 \n \n1,054,788 \n \n787,799 \n \n8,952 \n \n796,751 \n \n6,116,827 \n \n8,268,164 \n \n251,119 \n \n8,519,283 \n \n760,111 1,512,915 8,952,076 7,694,704 1,913,390 8,193,931 \n1,191,491 512,584 743,666 46 121 \n \n532,670 1,525,995 10,328,707 10,000,446 2,530,076 \n339,858 3,066,587 3,608,484 \n354,319 855,750 \n6,536 857,777 48,998 \n \n3,411 57.191 332,910 347,475 211,825 \n13,371 44,398 54,981 18,388 18,783 \n172,683 \n \n536,081 1,583,186 10,661,617 10,347,921 2,741,901 \n353,229 3,110,985 3,663,465 \n372,707 874,533 \n6,536 1,030,460 \n48 998 \n \n$ \n \n58,186,045 $ 60,759,657 $ \n \n2,032,006 $ \n \n62,791,663 \n \n1,695,543 327 361 \n \n2,442,654 138,252 \n \n137,357 105,673 \n \n2,580,011 243,925 \n \nTOTALQBEFORMULAFUNDS \n \n$ \n \n60,208,949 $ 63,340,563 $ \n \n2,275,036 $ \n \n65,615,599 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n-35- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nMarch 5, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dougherty County Board of Education as of and for the year ended June 30, 2003, which collectively comprise Dougherty County Board ofEducation's basic financial statements and have issued our report thereon dated March 5, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dougherty County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2003-34YB-30 \n \n control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dougherty County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6471-03-01, FS-6471-03-02 and FS-6471-03-03. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \nThis report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~l\u003cl.~ \nRussell W. Hinton State Auditor \nRWH:as 2003-34YB-30 \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nMarch 5, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2003. Dougherty County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofDougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dougherty County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dougherty County Board ofEducation's compliance with those requirements. \n2003SA-30 \n \n In our opinion, the Dougherty County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2003. \nInternal Control Over Compliance \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nWe noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Dougherty County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6471-03-01, FA-6471-03-02, FA-6471-03-03, FA-6471-03-04 and FA-6471-03-05. \nA material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \nThis report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2003SA-30 \n \nRussell W. Hinton State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-00-04 FS-6471-01-01 FS-6471-01-03 FS-6471-01-04 FS-6471-02-01 FS-64 71-02-02 FS-6471-02-03 \n \nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses Further Action Not Warranted Previously Reported Corrective Acton Implemented Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Acton Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-6471-01-01 \n \nDuring fiscal year 2001, the Dougherty County Board of Education approved the plan to fund the deficit in the Capital Projects - Regular Projects Funds by transferring $203,000 from the General Fund to the Capital Projects Fund each year for the next five years. As of the date of this response, transfers for fiscal years 2002, 2003 and 2004 have been completed. Transfers will continue to be made for fiscal year 2005 and end 2006 until the deficit is fully funded. \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Finding Control Number: FS-6471-02-01 \n \nDue to the limited number ofstaffavailable for assignment ofaccounting functions in the schools, management's internal auditor continues to work with each school to develop compensating internal controls. Current student activity account policies and procedures are being updated for implementation in fiscal year 2005. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Personnel File Maintenance Inadequate Leave Records Amount: $3,379 Finding Control Number: FS-6471-02-02 \n \nLeave records are kept at each location. Continue to stress importance ofloading leave in a correct and timely manner. We are introducing time and attendance system Fall 20042005. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-01-02 FA-6471-02-01 FA-6471-02-02 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Finding Control Number: FA-6471-02-01 \n \nWritten procedures have been developed and implemented for the fiscal year 2004 calculation of eligible attendance areas. Specific instructions identify the correct sources of data and the correct method of combining the data for calculation ofeligibility. These procedures are currently being reviewed by the U. S. Department of Education. A supervisory review of the calculation of eligible attendance areas will be made to ensure accuracy and completeness. \n \n-2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dougherty County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \nBudget Preparation/Execution Expenditures/Liabilities/Disbursements Employee Compensation \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dougherty County Board of Education disclosed reportable conditions in internal control over major programs for the following compliance requirements. \n \nActivities Allowed or Unallowed Cash Management Special Tests and Provisions \n \nAllowable Costs/Cost Principles Eligibility \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Dougherty County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nI SUMMARY OF AUDITOR'S RESULTS \n7. Major Programs Federal awards audited as major programs are as follows: 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.027 Individuals with Disabilities Education Act - Part B - Special Education Georgia Learning Resources System 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.027 Individuals with Disabilities Education Act - Part B - Special Education Severely Emotionally Disturbed 84.027 Individuals with Disabilities Education Act - Part B - Special Education Special Project- High School/High Tech 84.027 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.027 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building - Georgia Learning Resources System 84.027 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building - Severely Emotionally Disturbed 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.010 Elementary and Secondary Education Act - Title I - School Improvement 84.367 Elementary and Secondary Education Act - Title II- Improving Teacher Quality \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $642,628. \n9. Low Risk Auditee The Dougherty County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-6471-03-01 \nAt June 30, 2003, the General Fund and Capital Projects - Regular Projects Fund ofthe Dougherty County Board of Education reported deficit fund balances in the amount of $1,688,277 and $609,000, respectively which is considered to be an irregularity in accordance with O.C.G.A. 20-267. This condition occurred because management approved expenditures in excess of funds \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-6471-03-01 \navailable in the General Fund and Capital Projects - Regular Projects Fund. The School District should establish appropriate policies and procedures designed to ensure that in future periods the School District does not report a deficit. \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-6471-03-02 \nOur examination ofvarious principal accounts disclosed weaknesses in internal control as discussed below: \nCash and Cash Equivalents \n(1) The bank reconciliation function was not separated from the record keeping and voucher payment functions. \nRevenues/Receivables/Receipts (1) Deposit preparation was not separated from the record keeping and cash custody functions. \nExpenditures/Liabilities/Disbursements \n(1) The check writing function was not separated from record keeping or processing ofsigned checks. \n(2) Fifteen voucher packages for one of the two schools tested, lacked approval of expenditures prior to checks being written. \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-6471-03-02 \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and failure to ensure established controls were functioning as designed. Management should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization be segregated. Additionally, controls should be revised and monitored to provide reasonable assurance that transactions are processed to established procedures. \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayments Inadequate Personnel File Maintenance Inadequate Leave Records Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-03-03 \nA sample offorty-two employee's payroll records was selected and examined to test for accuracy of payroll records of the Dougherty County Board of Education. The following deficiencies were noted: \nSalary Overpayments/Underpayments \n The Board overpaid four employees a total of $1,010. The overpayments were the result of making duplicate payments to two employees for work performed, and not correctly adjusting payroll for use of sick leave in two instances. \n The Board underpaid one employee a total of$769. The underpayment was the result of paying the employee on the wrong salary scale. \nInadequate Personnel File Maintenance \n Teacher's employment contract could not be located for one employee. This deficiency is a result of failure to properly maintain employee personnel files. \n-4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Salary Overpayments/lJnderpayments Inadequate Personnel File Maintenance Inadequate Leave Records Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-03-03 \nInadequate Leave Records \n Sick leave was accrued at an incorrect rate for eleven employees. \n Supporting documentation for sick leave could not be located for one employee. \n Sick leave reports for leave taken did not agree to underlying supporting documentation for five employees. \n End of the year vacation leave balance was incorrect for one employee. \nThese deficiencies occurred due to the School District's failure to adequately monitor administrative procedures regarding employee compensation, record retention and sick leave records. \nThe School District should implement procedures to ensure that all payroll disbursements are based on approved contracts, salary scales and time worked. Leave records should be accurate and maintained in accordance with the School District's sick, personal and vacation leave policies. In addition, procedures should be implemented to ensure that personnel files contain all pertinent employee information. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nACTIVITIES ALLOWED/lJNALLOWED ALLOWABLE COST/COST PRINCIPLES Improper Expenditure Reportable Condition Amount: $47,740 U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-01 \nA review of accounting adjustments made to the Individuals with Disabilities Education Act - Part B - Special Education - Severely Emotionally Disturbed program (CFDA 84.027) revealed a charge \n-5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COST/COST PRINCIPLES Improper Expenditure Reportable Condition Amount: $47,740 U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-01 \nfrom the School District's General Fund for $47,740 for repairs and maintenance services. Documentation provided to support this charge was determined to be inadequate and, as a result, it was not possible to determine the validity of this expenditure. This deficiency was a result of the School District's failure to properly maintain and present for audit adequate documentation to support accounting entries. The Georgia Department of Education should review this matter to determine the allowability of this expenditure. \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COST/COST PRINCIPLES Inaccurate Indirect Cost Calculation Reportable Condition Amount: $23,424 U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-02 \nA review of the School District's indirect cost calculation revealed errors in the calculation which resulted in an overpayment of $23,424 by the Individuals with Disabilities Education Act - Part B Flow Through and Severely Emotionally Disturbed programs (CFDA 84.027) to the General Fund. This condition occurred because management failed to implement procedures to ensure that indirect cost calculations were properly applied before posting to the General Ledger. Refund of this overpayment should be made to the Georgia Department of Education from the School District's General Fund. \nCASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-03 \nA review ofcash management procedures for the Elementary and Secondary Education Act - Title II - Improving Teacher Quality (CFDA 84.367) program disclosed that cash draws were made in \n-6- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-03 \nadvance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 2003, the program had excessive ending monthly cash balances in four months. The excessive cash balances are a result of management's failure to accurately forecast the cash need of this program. Procedures should be implemented to minimize the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the School District. \nELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-04 \nDocumentation provided by the School District to support section IV of the Title I application pertaining to the determination ofeligible and participating attendance areas and school allocations for the 2003 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies (CFDA 84.010) Program, was deficient as follows: \n(1) One hundred and eighty-seven home schooled and severely emotionally disturbed children were included twice in the total resident children count on the application as submitted to Georgia Department of Education. \n(2) A total oftwo hundred and twenty-nine poverty children were not included in the poverty children counts as reported on the application to Georgia Department of Education. \nAs provided for in the grant application and required by 34 CFR 76.730, the School District assured the Georgia Department of Education that it will keep records and provide information as may be required for audit purposes. \n-7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-04 \nThis condition was a result of the School District's failure to implement internal controls for monitoring compliance with Federal guidelines. The School District should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and proper internal control relative to the above Federal compliance requirements and implement those procedures to strengthen the internal control over Federal programs. Also, the Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate. \nSPECIAL TESTS AND PROVISIONS Fiscal Requirements of School-wide Program Not Fully Implemented Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-05 \nDuring the year in review, the School District identified twenty-one schools as participating in a school-wide program. While Federal provisions prescribe that multiple funding sources (Federal, State or Local) are required to support a school-wide program, we noted that the Title I program (CFDA No. 84.010) was identified as the only funding source supporting the school-wide program concept at the participating schools and, in contrast with Federal requirements, the School District arbitrarily charged the Title I fund with school-wide expenditures. \nIn accordance with provisions ofU. S. Department ofEducation Instructions and 0MB Circular A133, Compliance Supplement provisions, eligible schools are able to use their Title I, Part A funds, in combination with other Federal, State and local funds, in order to upgrade the entire educational program of the school and to raise academic achievements for all students. By combining funds from Title I and other eligible U. S. Department of Education funded programs in support of a school-wide program, U.S. Department ofEducation Instructions provide that specific school-wide program costs lose their identity but only in those circumstances when funds are combined in a school-wide program. In line with 0MB Circular A-87 requirements, school-wide expenditures should be charged to those Federal funding sources supporting the school-wide program in a reasonable manner. If there is only one Federal funding source, then costs should be charged to the \n-8- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SPECIAL TESTS AND PROVISIONS Fiscal Requirements of School-wide Program Not Fully Implemented Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-03-05 Federal program based on the specific benefits derived from that cost. When more than one Federal program supports a school-wide program, then school-wide program expenditures may be allocated to specific Federal funds in proportion to the different Federal funds provided in support of the school-wide program. It was the School District's understanding that costs related to a school-wide program lose their identity and therefore any school-wide program cost can be charged to the Title I program. They were unaware that this was only applicable when there is more than one funding source supporting the school-wide program. The School District should implement procedures to assure that ifthe Title I program continues to be the only funding source in support ofa school-wide program, only those costs that specifically relate to the Title I program may be charged to the Title I fund. If more than one funding source is to support the school-wide program in the future, then procedures should be developed to (1) combine such funds as prescribed by U.S. Department ofEducation and (2) ,in line with 0MB Circular A-87 provisions, allocate such school-wide program costs to the respective Federal fund in a reasonable manner. The Board should seek Georgia Department ofEducation guidance in implementing fiscal procedures for combining and allocating school-wide program expenditures to Federal programs. \n-9- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2001-h2002","title":"Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2002-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000-","Ceased with fiscal year ended June 30, 2008.","Title from cover.","Report year covers fiscal year.","Has supplements: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["periodicals","official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"(,A -~' \n \n' ' . , - 1 \n \n,_ \n \nABO?\".' \n \n)' \n \n'. \n \n'Kl \nt ;J. l,, \n \nr \n \n \n- \n \nr \n-' \n \n- \n \nI \n- \n \n, \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n: \n \n- \n \n- \n \n- \n \n- \n \n- \n \n-' \n \n--- \n \n- \n \n- \n \n: \n \n- \n \n- \n \n- \n \n- \n \n. ' \n-- \n \n- \n \n: \n \n- \n \n- \n \n: \n \n- \n \n- \n \n- \n \n- \n \n, \n \n- \n \n- \n \n: \n \n' \n- \n \n' \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n, \n \n, \n \n- \n \n- \n \n' \n \n- \n \n- \n \n- \n \n, \n \n- \n \n' \n \n1n \n \n' \n \n~001-;;,: \n \n.( ' \n \n' J \n \n, ' \n \nI'_' r ' \n \nsTAT,E-OF GEOR~IA \n \nDEPARTMENT OF;AUDITS AND:ACCOUNTS- ., \n \n,' \n \n \n \n.~ \n \n, \n \nI \n \n,.- \n \n- \n \n(. , \n \n,- \n \n,. ' \n) \n \n'' \n \n'' \n, \n', \n \n' . ' \n\u003e \n \n,. \n., \n \nr \n \n,_ \n \nDOUGHERTY COUNTY BOARD O'F EDUCA-TIO- 'N \nAl.B~NY. 'GEORGIA, \n \n' ' \n \n', ..  \n \n! \n \n, ,. \n \n' : ~/ r \n \n\u003e \n \n, , \n \nI \n \nI \n \nR~PPRT.,ON AUDIT.: \n \n. , \n \n-- \n. _,, \n \n. ~ \n \nOF THE FINANCIAL STATEM.ENTS \n \nFOR THE.flSCAL ,YEAR. ENDED JUNE 30; 2002' \n \n \u003c \n \n  1 \\ \n \n,  \n \n I \n \n \n \n \n \n \n \n' \n \n.\\ \n \n.' ' \n,,.,., \n\" \n, \n'l \n. ' \n \n' . \n \nRussell W. Hinton \n \n.. \n \nState A~dltor \n \n' V \n \n,. \n \n.., \n \nI  '' \n \n'. \n \n7 \n--- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TAB! E OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nIND[Pl'NDl'NT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAi STATEMENTS AND SUPPLEMENTARY INJ\u003cORMATION - SCHEDULE OF 1:.XPENDITURES OF FEDERAL AWARDS \n \nrXHIBITS \n \nBASIC FINANCIAL STA\"! EMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL SfATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMI,N f Al FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNM~NTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPl:.NDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nor RECONCILIATION THE GOVERNMENTAL fUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THlo STATEMENT OF ACflVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSlolS \n \nFIDUCIARY FUNDS \n \n11 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMEN rs \n \n13 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN Fl.Jl\\U BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n30 \n \n2 SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS \n \n31 \n \n3 SCHEDULE OF STATE REVENUF \n \n33 \n \n4 SCHEDUI E OF APPROVl:.D LOCAL 01' I ION SALES TAX PROJECTS \n \n35 \n \nALLOTMEN IS AND FXPENDITTJRES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n5 \n \nBY PROGRAM \n \n36 \n \n6 \n \nBY SITE \n \n37 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECfION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPOR I ING BASED ON AN AUDIT OF FINANCIAL SfATEMENTS PERFORMED IN ACCORDANCE Wm{ GOVERNMENT AUDITING STANDARDS REPORI ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON IN'I ERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUES1 ION ED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COS1 S \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE or fINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Rl\"SH I \\\\', HINIO' \nSTA.Ti\" N.JQIHUl (4J..) ,,,f;? 71 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n2\"4 \\\\'.i..,hmgton l..,LrcLl \"\\V \u003c.;uni: 211 Atl,IIIL.t, (1Cl1rg1,l 10'34-X-11.10 \nMarch 14, 2003 \n \nHonorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEME\\lTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen \nWe have audited the accompanymg financial statements of the governmental ac!Jv1t1es. each maior fund. and the aggregate remaining fund mformallon (Exh1b1ts A through H) ofthe Dougherty County Board of Education, as of and for the year ended June 30. 2002, which collectively compnsc the Board'~ basic financial statements as h~te\u003cl in the table of contents These financial statements arc the rcspons1b1hty ofthe Dougherty County Board of Education's management Our rcspons1b1hty 1s to express opinions on these financial statements based on our audll \nWe conducted our audll in accordance with aud1tmg standards generally accepted in the Umted States of America and the standards apphcable to financial audits contamed in Government Auditing Standards, issued by the Comptroller General of the Umted States Those standards require that we plan and perfom1 the audit to obtain reasonable assurance about whether the financial statements arc free of material misstatement An audit includes examining, on a test basis, evidence supportmg the amounts and disclosures in the financial statements An audit also includes assessing the accountmg pnnc1ples used and s1gmficant estimates made by management, as well as evaluating the overall financial statement presentation We bcheve that our audit provides a reason.ihle basis for our op1mons \nAs discussed m Note 2 to the financial statements, the SLhool D1stnct changed its method of dccounting for the final two payments on one hundred and mnety day employment contracts and the related revenue due from the State to fund these contracts Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts No adjustment was made for the sinular salaries \n2002-34ARL-13 \n \n and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this infonnat1on was not read1 ly available The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a maJonty of General Fund salanes and fnnge benefits and fourteen months of revenue from the State to fund these contracts Generally accepted accounting pnnc1ples rcqmre that expenditures be recorded when incurred. rather than when funds arc received or disbursed The aggregate effects on the financial statements ofth1s vanancc or omiss10n have not been determined, but are believed to be matcnal \nIn our opinion, except for the effects of not properly recognizing revenues and costs for certain salanes in the governmental activities and general fund as descnbed in the proceeding paragraph, the financial statements referred to above present fauly. in all material respects, the financial pos1t10n of the governmental activilies and general fund of the Dougherty County Board of Educauon, as of June 30, 2002, and the respective changes in financial pos1lion thereof for the year then ended in conformity wuh accounting principles generally accepted in the United States of America \nIn addition, in our op1mon, the financial statements referred to above present fauly, in all material respects, the respecllve financial pos1uon of the capital proJects fund, the debt service fund and the aggregate remaining fund infonnat10n of the Dougherty County Board ofEducallon, as of June 30, 2002, and the respecllve changes in financial pos11ion thereof for the year then ended in conformity with accounting principles generally accepted in the United States of Amenca \nThe Dougherty County Board ofEducallon has not presented Management's Discussion and Analysis that accounting pnnc1ples generally accepted in the Umted States has detennined 1s necessary to supplement, although not to be part of, the basic financial statements \nAs discussed in Note 2 to the basic financial statements, dunng fiscal year 2002, the Board consolidated its individual school acuvity accounts for inclusion in the basic financial statements This change 1s in accordance wilh generally accepted accounting principles \nAs described in Note 2, the Dougherty County Board ofEducallon has implemented a new financial reporting model as reqmred by prov1s1ons of Governmental Accounting Standards Board Statement No 34, Basic Financial Statements - and Management's Di~cusswn and Ana(vsis - for State and Local Government~, as of June 30. 2002 \nIn accordance with Government Auditing Standards, we have also issued our report dated March 14, 2003, on our cons1derat1on of the Dougherty County Board of Educallon's internal control over financial reporting and our tests of its compliance with certain prov1s1ons of laws, regulallons, contracts and grants That report 1s an intc1,,,-al part of an audit performed in accordance with Government Auditing Standards and should be read in conJuncllon with this report in cons1denng the result~ of our audit \n2002-34ARL- I3 \n \n The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 30, 1s not a required part of the basic financial statements but 1s supplementary information required by the Governmental Accounting Standards Board We have applied certain hm1ted procedures, which consisted pnnc1pallyofmqumcs ofmanagement regarding the methods of measurement and presentation of the reqmred supplementary information However, we did not audit the information and express no op1mon on 11 \nOur audit was conducted for the purpose of forming opin10ns on the financial statements that collectively cornpnsc the Dougherty County Board of Educatmn's basic financial statements The accompanying supplementary information which consist of Schedules 2 through 6, which includes the Schedule of Expenditures of Federal Awards as reqmred by U S Office of Management and Budget Circular A-133, Audas ofStates, Local Governments, and Non-Profit Orgam:atwns. are not a required part of the basic financial statements Such information has been subJccted to the auditing procedures applied in the audit of the basic financial statements, and m our op1mon, except of the effects of the matter referred to in the third paragrnph, such informalion, 1s fairly stated, in all matenal respects, in relation to the basic financial statements taken as a whole \nA copy ofth1s report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated section 506-24 \nRespectfully submitted, \n \nRWHgp 2002-34ARL-l 3 \n \nState Auditor \n \n DOUGHER I Y COUNTY BOARD OF EDUC/\\1 ION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS \nJUNE 30 2002 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items Inventories Capital Assets Land Construction m Progress Bu1ld1ngs and Improvements Equipment Less Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term L1abll1t1es \nDue W1th1n One Year Due m More Than One Year \nTotal uab1lrt1es \nNET ASSETS \nlnvested m Capital Assets, Net of Related Debt Restncted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liab1lrt1es and Net Assets \nThe notes to the basic financial statements are an integral part of this statement -3 - \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n4,462,700 35 \n \n32,479,796 05 \n \n4,103,204 08 9,280,212 33 2,644,334 78 1,686,087 03 \n219,832 41 646,530 87 \n \n9,025,404 17 24,837,537 70 166,624,824 43 12,595,106 36 -80,588,904 22 \n \n$ _ _1;,:;8;;;8,::,0,:;16,:a,666=~34;;, \n \n$ \n \n3,288,792 78 \n \n11,090,301 42 \n \n311,01936 \n \n168,334 24 \n \n778,615 52 \n \n36,140 99 \n \n7,797,921 77 302 817 80 \n \n$ \n \n23 773 943 88 \n \n$ 130,989,450 80 \n \n79,260 83 475,564 91 \n2,529 31 26,567 230 28 \n6 128,686 33 \n \ns \n \n164,242,722 46 \n \n$ \n \n188,0161666 34 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2002 \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrat1on School Admm1strat1on Business Adm1n1strat1on Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterpnse Operations Community Services Food Services Interest on Short-Tenn and Long-Tenn Debt \n \n$ 90.608.540 46 $ \n4,985.511 02 4,798,934 90 3.639,281 82 1,524,324 39 8.708,007 76 1,828.915 28 9.807, 782 88 4,858.681 07 2.202,693 22 \n71,027 85 \n477 313 13 860,940 47 8.363.218 63 592,712 50 \n \n611.072 58 \n222,776 48 1,407,380 76 \n \nTotal Governmental Act1v1t1es \n \n$ 1431327,885 38 $ \n \n2 241,229 82 \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Proiects Intangible Recording Tax Real Estate Grants and Contnbut1ons not Restncted to Specific Programs Investment Earnings M1scellaneous \nSpecial Items Gain on Sale of Bu1ld1ng Gain on Sale of Land \nTransfers \n \nTotal General Revenues, Special Items and Transfers \n \nChange m Net Assets \n \nNet Assets - Beginning of Year (See Note 2) \n \nNet Assets - End of Year \nThe notes to the basic financial statements are an integral part of this statement -4 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS ANO \n \nGRANTS AND \n \nCONTRIBUTIONS \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n68,226,629 99 $ \n \n1,792,405 07 2,559,569 79 1,850,324 46 2,224,450 85 3,393,337 65 \n \n4,487,813 88 1,845,237 59 \n \n28,098 80 \n \n23,768 74 \n \n6,669,109 74 \n \n$ \n \n93 100 746 56 $ \n \n415,32500 $ 478,006 00 893 331 00 S \n \n-21,355,512 89 \n-3, 193,105 95 -2,239,365 11 -1,788,957 36 \n700 126 46 -5,314,670 11 -1,828,915 28 -5,319,969 00 -2,535,437 48 -2,202 693 22 \n-42,929 05 \n-453,544 39 -638,163 99 -286,728 13 -592 712 50 \n-47,092,578 00 \n \ns \n \n31,339,476 74 \n \n40,216 08 \n \n3,979,196 88 11,495,924 62 \n479,894 63 77,870 08 \n6 174,659 53 1,037,677 61 2,609,071 81 \n329,134 03 388,661 03 \n-2 162 75 \n \n$ \n \n57 949,620 29 \n \n$ \n \n10,857,042 29 \n \n153 385 680 17 \n \n$ ==1;,;;64-,2.;42;.,_;,72;;;2;,,4,;,;6;, \n \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \nBALANCE SHEET \nGOVERNMENTAL FUNDS \nJUNE 30 2002 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Prepaid Items lnventones \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salanes Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal l.Jab1ht1es \nFUND BALANCES \nReserved for Arbitrage Rebate Tax Bus Replacement Contmuallon of Federal Programs Debi Service Capltal ProJedS Pnvate Grants \nUnreserved Dostgnated for Sett-Insurance Undesignated Reported in General Fund Capital Pro,ects \nTotal Fund Balances \nTotal L1abll1t1es and Fund Balances \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUNDS \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \ns $ 1 694,941 59 \n \n2,765 229 45 $ 2 529 31 S 4 462,700 35 \n \n3,658,356 20 \n \n28,821 439 85 \n \n32 479 796 05 \n \n1,004,530 57 9,200,586 63 2 644,334 78 1,331,112 42 \n219 832 41 646 530 87 \n \n2 630 297 12 79,625 70 \n364,974 61 \n \n3 634 827 69 9 280 212 33 2 644 334 78 1,686 087 03 \n21983241 646 530 87 \n \nS 20 400 225 47 $ 34 651 566 73 S 2 529 31 $ 55 054,321 51 \n \ns 3 032 824 34 $ \n11 09030142 31101936 350 739 57 \n36 140 99 \ns 14,821 025 68 s \n \n255,968 44 \n168 334 24 77861552 1,202,918 20 \n \ns 3 288 792 78 \n11,090 301 42 31101936 350 739 57 168 334 24 778,615 52 36 140 99 \n$ 16 023 943 88 \n \ns 1 426 479 79 \n \ns 1,426 479 79 \n \n$ \n \n79 260 83 \n \n79 260 83 \n \n475 564 91 \n \ns 2,529 31 \n \n475 564 91 2 529 31 \n \n33 300 910 81 \n \n33 300 910 81 \n \n250 000 00 \n \n250 000 00 \n \n1 029 524 51 \n \n1 029 524 51 \n \n3 744 849 54 \n \n1 278 742 07 \n \n3 744 849 5-4 -1 278 742 07 \n \n$ 5579,19979 S 33 448 648 53 $ 2 529 31 S 39,030 377 63 \n \nS 20 400 225 47 S 34 651 566 73 $ 2 529 31 S 55 054 321 51 \n \nThe notes to the basic financial statements are an integral part of this statement . 6. \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30 2002 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exh1b1t \"C'/ \n \ns 39,030,377 63 \n \nAmounts reported for Governmental ActJV1t1es m the Statement of Net Assets are different because \n \nCapital Assets used m Governmental Activ1bes are not financial resources and therefore are not reported m the funds These assets consist of \n \nLand Construcbon m Progress Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \n \nS \n \n9 025,404 17 \n \n24 837 537 70 \n \n166 624 824 43 \n \n12,595106 36 \n \n-80 588 904 22 \n \n132 493 968 44 \n \nSome of the School D1stnct's property tax revenues will be collected after \nyear end but are not available soon enough to pay for the current penod's expenditures \n \n468 376 39 \n \nLong-Term llabrl1ties including bonds payable, are not due and payable m the current period and therefore are not reported as liab1ht1es m the funds Long-Term l.Jabrhlles at year-end consist of \n \nBonds and Notes Payable \n \n-7 750 000 00 \n \nNet Assets of Governmental Achv1ties (Exh1b1t '\"A\"') \n \n$ 164 242 722 46 \n \nThe notes to the basic finanaal statements are an integral part of thLS statement -7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \nSTATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS \nYEAR ENDED JUNE 30 2002 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Salos Taxes State Funds Federal Funds Charges for SeMces Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent lnstructmn Support Services Pup1I SelVlc:eS Improvement of lnstruchonal Serw:es Educat10.'lal Mecha Services General Adm1mstratlon Sdiool Adm1rustrabon Busmoss Adrrumstration Maintenance and Operation of Plant Student Transportahon Services Central Support Services Other Support Services Enlerpnse Operations Communrty Services Food Services Opera\\on \nCapital Outlay Debt SeMCE! \nPnnopal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTtJE!l FltjANl,ING SOURCES (USES} \nSale of Equipment Insurance Proceeds Transfers In Transfers Out \nTotal Other Financmg Sources (Uses) \nSPECIAL ITEMS \nProceeds from Sale ol Buildings Proceeds from Sale of Land \nTotal Special Uems \nNet Change in Fund Balances \nFund Balances - Beg1ming \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUNDS \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \ns 31,484,335 84 \n \n$ 31 48-4 335 64 \n \n557 764 71 $ 11495 924 62 $ 3 979 196 88 \n \n16 032 886 21 \n \n83,748 36111 \n \n8374836111 \n \n16 599,182 48 \n \n16 599 182 48 \n \n2,241,229 82 \n \n2 24122982 \n \n245,672 02 \n \n790 586 85 \n \n1 416 74 \n \n1 037 677 61 \n \n241270974 \n \n173 868 05 \n \n2 586 577 79 \n \n$ 137,289.255 72 $ 12,460,381 52 $ 3980,61362 $ 153 730 250 86 \n \ns 88,651 442 20 \n \ns 88 651 442 20 \n \n4 979 791 34 4 758170 94 3 533 085 77 1,52215322 $ 8,601,01246 1,758,41061 9 628 890 31 4 698 743 79 2,205 380 23 \n71 027 85 475,005 77 860 940 47 8,055,464 38 102,004 72 \n \n31 62 \n48 575 09 s \n363 229 06 \n14 165 502 02 \n \n2 040 56 \n \n4,979,791 34 4,758 170 94 3 533 085 77 1522184 84 8 601 012 46 1 809 026 26 9,992,11937 4 698 743 79 2 205 380 23 \n71 027 65 475 005 77 860,940 47 8 055,464 38 14 267 506 74 \n \n7 350 000 00 592 712 50 \n \n7 350 ODO 00 592 712 50 \n \ns s $ 139 901 524 06 \n \n14,577 337 79 \n \n7 944 753 06 $ 162.423 614 91 \n \n$ -2 612.268 34 $ -2 116 956 27 $ -3 964 139 44 $ -8 693 364 05 \n \ns \n \n10,308 00 \n \n20,346 71 \ns \n \n299 505 82 \n \n-301 668 57 \n \n$ \n \n-271 013 86 $ \n \n2991505 82 \n \ns \n \n10 308 00 \n \n20 346 71 \n \n299 505 82 \n \n-301 688 57 \n \n$ \n \n28 491 96 \n \ns \n \n943 352 66 \n \n595 662 34 \n \ns \n \n943 352 66 \n \n595 662 34 \n \ns \n \n1 53901500 \n \ns \n \n1.539 015 00 \n \n$ \n \n-1 344 267 20 $ -1 617 450 45 $ 3 964 139 44 s \n \n-7 125 657 09 \n \n6 923 466 99 \n \n35 268 098 98 \n \n3 966 668 75 \n \n46 156 234 72 \n \nFund Balances - Ending \n \n$ \n \n5 57919979 $ 33.448.648 53 S \n \nThe notes to the basrc financial statements are an integral part of this statement \n \n 8. \n \n2 529 31 $ 39 030 377 63 \n \n pOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nRi;VENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES \nJUNE 30 2002 \n \nEXHIBIT \"F\" \n \nTotal Net Change m Fund Balances - Governmental Funds (Exh1bd E) \nAmounts reported for Governmental Activities 1n the Statement of Ac:1Mlles are different because \nCapita! Outlays are reponed as expenditures m Governmental Funds However, \nm the Statement of Ad1vlt1es, \\he cost of Capita\\ Assets ,s allocated O\\ler \ntheir estimated useful hves as depreaatIon expense In the current penod, these amounts are \nCapital Outlay Depreciallon Expense \nExcess of Capital Outlay over Depreaatron Expense \nBecause some property taxes will not be collected for several months after the School Dtstnct's fiscal year ends they are not considered avaIlab1e revenues \nIn the Statement of Activihes, only the gam on the sale of the land and buddings 1s reported, whereas m the Governmental Funds, the enbre proceeds from the sale rncrease financial resources Thus, the dlange rn net assets differs from the dlange rn fund balances by the cost of the land and carrying value of the buI1dlngs sold \nRepayment of Long-Term Debt Is reported as en expenditure rn Governmental Funds but the repayment reduces long-term habllltles rn the Statement of Net Assets In the current year these amounts cons'5t of \nBond Prrncipal Retirements \n \n$ -7 125 857 09 \n \n$ 14 747,477 54 -3 001 748 01 \n \n11,745 729 53 \n \n-283,449 52 \n \n-829,380 63 \n \n7 350 000 00 \n \nChange m Net Assets of Governmental Ac11v1hes (Exhibit s) \n \nThe notes to the basic financral statements are an mtegral part or this statement \n- 9. \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS \nJUNE 30 2002 \nASSETS Cash and Cash Equrvalents Accounts Receivable, Net \nOther \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ 168,446 64 35,369 00 \n$ 203,815 64 \n$ 2031815 64 \n \nThe notes to the basic financial statements are an integral part of this statement - 11 - \n \n DOUGHERTI' COUN I Y BOARD OF EDUC A flON NOIES TO THE BASIC HNANCIAL STATEMENTS \nJUNE 30, 2002 \n \nEXHIBIT\"H\" \n \nNote I DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty County Board of Education (School D1stnct) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntcndent appomted by the Board The Board 1s orgam7cd as a separate legal entity and has the power to levy ta.\u003e,.es and issue bonds Its budget 1s not subject to approval by any other enllty Accordmgly, the School D1stnct 1s a pnmary government and consists of all the orgamzallons that compose !Is legal enllty \nNote 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School D1stnct's basic financial statements arc collecl!vely compnsed of the D1stnct-w1de financial statements, fund financial statements and notes to the basic financial statements of the Dougherty County Board of Education \nDi~trict-wide Statements: The Statement ofNet Assets and the Statement of Act1v111es display mformal!on about the financial ac11v11Ics ofthe overall School D1stnct, ei..ccpt for fiduciary acllv111es Ehmmallons have been made to mmm11ze the double countmg of mternal ac11v1t1es Governmental act1v11Ies generally are financed through tai..es, mtergovemmental revenues, and other noncxchangc transacuons \nThe Statement of Acllv1t1cs presents a companson between direct expenses and progran1 revenues for each funchon of the School D1stnct's governmental ac1Iv111es \n Direct expenses are those that arc specifically associated with a program or funchon and, therefore, are clearly 1denllfiablc lo a particular funct10n lnd1rect expenses (expenses of the School D1stnct related to the admm1strat1on and support of the School D1stnct's programs, such as office and mamtenance personnel and accountmg) arc not allocated to programs \n Program revenues mclude (a) charges paid by the rec1p1ents of goods or services offered by the programs and (b) grants and contnbut10ns that arc restnctcd to mectmg the operallonal or capital reqmrements of a particular program Revenues that arc not classified as pro!,'Tam revenues, mcludmg all taxes, arc presented as general revenues \nFund Financial Statements: The fund financial statements provide mfonnallon about the School D1stnct's funds, mcludmg fiduciary funds Separate statements for each category (governmental and fiduciary) are presented The emphasis of fund financial statements 1s on maior governmental funds, each displayed m a separate column \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC' FINANCIAL STATEMENTS \nJUNE 30, 2002 \n \nEXHIBIT \"II\" \n \nNote 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School D1slnc1 reports the following major governmental funds \n General Fund 1s the School D1slncl's pnmary operating fund It accounts for all financial resources of the School D1stnct, except those resources reqmred lo be accounted for in another fund \n D1slncl-w1de Capital Projects fund accounts for financial resources including Bond Proceeds, grants from Georgia State Financing and Investment Comm1ss1on and Special Purpose Local Option Sales Tax proceeds to be used for the acqu1S1l1on, construction or renovation of major capital fac1ht1es \n Debt Service Fund accounts for taxes (sales) legally reslncted for the payment of general longterm pnnc1pal, mterest and paying agent's fees \nThe School D1stnct reports the followmg fiduciary fund type \n Agency funds account for assets held by the School D1stnct as an agent for vanous funds or ind1v1duals \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transact10ns are reported on the financial statements The D1stncl-w1dc governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting Revenues are recorded when earned and expenses arc recorded at the time hab1ht1es are incurred, regardless of when the related cash flows take place Nonexchange transactions, in which the School D1stnct gives (orrece1ves) value without directly rcce1vmg (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations On an accrual basis, revenue from property taxes 1s recogmzed in the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed in the fiscal year m which the underlymg transact10n (sale) takes place Revenue from grants and donations 1s recogmzed in the fiscal year in which all ehg1b1hty requirements have been satisfied \nThe Board uses funds to report on its financial pos1t10n and the results of 1\\s operations Fund accountmg 1s designed to demonstrate legal compliance and lo aid financial management by segregating transactions related to certain governmental functions or ac!Iv1!Ies A fund 1s a separate accountmg entity with a self-balancing set of accounts \n \n- 14 - \n \n DOUGHERTI COUN fY BOARD OF EDUCATTON NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30. 2002 \n \nEXIIIBIT \"H\" \n \nNote 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGovernmental funds are reported usmg the current financial resources measurement focus and the modified accrual basis of accountmg Under this method, revenues arc recogmzed when measurable and available The School D1stnct considers all revenues reported m the governmental funds to be available 1f they are collected w1thm sixty days after year-end Property taxes, sales taxes and mterest are considered to he susceptible to accrual Expenditures are recorded when the related fund hab1hty 1s mcurrcd, except for pnnc1pal and mterest on general long-term debt and claims and Judgments, which are recogm1:ed as expenditures to the extent they have matured Capital asset acqms1t1ons are reported as expenditures m governmental funds Proceeds of general long-term hab1ht1es and acqms1t10ns under capital leases are reported as other financmg sources \nThe School D1stnct funds certam programs by a combmat10n ofspecific cost-reimbursement grants, catcgoncal grants, and general revenues Thus, when program costs are mcurred, there are hath restncted and unrestncted net assets available to finance the program It 1s the School D1stnct's policy to first apply grant resources to such programs, followed by cost-reimbursement b'Tllnts, then general revenues \nFor fiscal year 2002, the School D1stncl changed its method of accountmg for the final two payments on one hundred and nmety day contracts and for the related revenue due from the State to fund these contracts Adjustments have been made m the fiscal year 2002 financial statements to record costs for salancs and fnnge benefits earned hy employees through June 30, 2002, (even though paid m July and August 2002) and the related revenue due from the State to fund these contr.icts This change 1s m accordance with generally accepted accountmg pnnc1plcs No adJustment was made for the s1m1lar salanes and benefits earned m fiscal year 2001 but recorded m fiscal year 2002 as this mformat1on was not readily avq1lable \nThe net effect of the above accountmg treatment resulted m the accompanying financial statements renectmg fourteen months of costs for a maJonty of General Fund salanes and fnnge benefits and the related revenue due from the State to fund these contracts Generaliy accepted accountmg prmc1ples require that revenues be recorded when earned or ava1!able and measurable as appropnate and that expenditures or expenses as appropnatc be recorded when mcurred, rather than when funds are received or disbursed \nRESTATEMENT OF PRIOR YEAR FUND BALANCE- GENERAL FUND \nIn prior years, the financial acuv1Ues of the School D1stnct's School Food Services Fund, Lottery Programs and Federal Programs were reported as Special Revenue Funds These funds had a combmed fund balance of$608,328 86 at July 1. 2001 For fiscal year 2002, these funds have heen reported as part of the General Fund Also m pnor years, the financial act1v1t1es of the School D1stnct's Workers Compcnsat10n Fund was reported as an Internal Service Fund This fund had retamed cammgs of$ I,324,761 04 at July I, 2001 For fiscal year 2002, this fund has been reported as part of the General Fund In add1t10n, governmental fund act1v1ty from the vanous school act1v1ty accounts, which were reported as Agency Funds m the pnor year's financial ~tatements, have been \n \n- I5 - \n \n DOUGHERTY COUNTY BOARD or EDUCATION \nNOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2002 \n \nl:XHIBIT \"H\" \n \nNote 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nreported w1thm the General Fund for fiscal year ended June 30, 2002 The governmental fund \nac1Iv1ty of the vanous school ac11v1ty accounts had a fund balance of$306,940 04 at July I. 2001 \nThis change 1s m accordance with generally accepted accountmg pnnc1ples \n \nGeneral Fund Balance July I, 2001 \n \n$ 4,683,437 05 \n \nAdd Funds Consolidated with General Fund School Food Services Fund Federal Programs Internal Service Fund School Acllv1ty Account - Governmental Activity \n \n586,723.09 21,605 77 \n1,324,761 04 306 940 04 \n \nGeneral Fund Balance July I, 2001 (Restated) \n \n$ ,22.3,46!'2,22 \n \nCHANGES IN ACCOUNTING PRINCIPLES \n \nThe Dougherty County Board of Education has implemented a new financial rcportmg model as required by prov1s1ons of Governmental Accounting Standards Board Statement No 34, Basic Financial Statements - and Management's D1scusswn and Analvs1s - for State and Local Governments, as of June 30, 2002 \n \nThe prov1s10ns ofGASB Statement No 34 require the mclus1on ofa Statement of Net Assets lbe elements compnsmg Net Assets - Begmnmg mclude the followmg \n \nGeneral Fund (Restated) July I, 2001 Capital ProJccts Fund Debt Service Fund \n \n$ 6,923,466 99 35,266,098 98 3,966,668 75 \n \nGovernmental Funds (Restated) July I, 2001 Capital Assets Accumulated Deprec1allon Property Tax Revenue T1mmg Differences Bonds Payable \n \n$ 46.156,234 72 205,304,574 06 -83,726,954 52 751,825 91 -15,100,000 00 \n \nNet Assets Begmmng (See Exh1b1t \"8\") \n \n$ill,385.680. I7 \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term mvestments With ongmal maturities of three months or less from the date of acqu1s1t1on m authonzed financial mshtul!ons Georgia Laws OCGA 45-8-14 authonze the Board to deposit its funds m one or more solvent banks or msured Federal savings and loan associat10ns \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC HNANCIAL STATEMENTS \nJUNE 30, 2002 \n \nEXHIBIT \"II\" \n \nNote 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School D1stncl in nonpart1c1pating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1patmg interest-earning contracts and money market investments with a matunty at purchase ofone year or less arc reported at amortized cost Both part1c1pating interest-earning contracts and money market investments with a matunty at purchase greater than one year are reported at fair value The Official Code of Georgia Annotated Section 36-83-4 authonzes the School D1stnct to invest its funds In selecting among oplions for investment or among inshtuhonal bids for deposits, the highest rate ofreturn shall be the obJectJve, given eqmvalent cond1t10ns of safety and hqmd1ty Funds may be invested in the following \n( 1) Obhgat1ons issued hy the State of Georgia or by other states, \n(2) Obhgat10ns issued by the Umted States government, \n(3) Obhgat1ons fully insured or guaranteed by the Umted States government or a Umted States government agency, \n(4) Ohhgat10ns of any corporat10n of the Umted States government, \n(5) Pnme hanker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obhgat1ons of other pohtJcal subd1v1s10ns of the State of Georgia \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivable~ d1~closed from mformat10n available Receivables are recorded when either the asset or revenue recognIIIon cntcna has been met Receivables recorded on the basic financial statements do not include any amounts whKh would necessitate the need for an allowance for uncollectJble receivables \n \n- 17 - \n \n DOUGHER I Y COUNTY BOARD OF EDUCATION \nro NOTES THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2002 \n \nEXHIBIT \"H\" \n \nNote 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nPROPERTY TAXES \n \nThe Dougherty County Board of Comm1ss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on September 11, 2001 (levy date) Taxes were due on December 20, 2001 (hen date) Taxes collected w1thm the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reported as revenue m the governmental funds for fiscal year 2002 The Dougherty County Tax Comm1ss10ner bills and collects the property taxes for the School D1stnct. withholds 2 1% of taxes collected as a fee for tax collechon and remits the balance oftaxes collected to the School D1stnct Property tax revenues, at the fund rcportmg level, dunng the fiscal year ended June 30, 2002, for mamtenance and operat10ns amounted to $31,444,119 76 \n \nThe tax millage rate levied for the 2001 tax year (calendar year) for the Dougherty Board of Educat10n was as follows (a mill equals $1 per thousand dollars of assessed value) \n \nSchool Operations \n \nWm1lls \n \nSALES TAXES \n \nSpecial Purpose Local Opllon Sales Tax revenue, at the fund reportmg level, dunng the year amounted to $15,475,121 50 and 1s to be used for capllal outlay for educauonal purposes or debt service The sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years \n \nINVENTORIES \n \nFOOD INVENTORIES On the d1stnct-w1de financial statements, mventones of donated food commod1t1es used m the preparation of meals are reported at thc1r Federally assigned value and purchased foods invcntones are reported at cost (weighted average) The School D1stnct uses the consumpt10n method to account for mventones whereby donated food commod1t1es are recorded as an asset and as revenue when received, and expenses are recorded as the mventory items are used Purchased foods are recorded as an asset when purchased and expenses are recorded as the inventory items are used \n \nOn the fund statements, inventones of governmental funds are reported at cost (weighted average) The School D1stnct uses the consumption method to account for invcntones whereby expenditures arc recorded when inventory Ilems arc used \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2002, are recorded as prepaid items \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO TIIE BASIC FINANCIAL STATEMENTS \nJUNF 30, 2002 \n \nEXIIIBI I' \"H\" \n \nNote 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCAPITAL ASSETS \n \nCapital assets purchased, mcludmg capital outlay costs, are recorded as expenditures m the fund financial statements at the lime ofpurchase On the D1stnct-w1de financial statements, all purchased capital assets arc valued at cost where h1stoncal records are available and at estimated h1stoncal cost based on appraisals where no h1stoncal records exist Donated capital assets arc recorded at fa1r market value on the date donated Disposals are deleted at depreciated recorded cost The cost of normal mamtcnance and repairs that do not add to the value of assets or matenally extend the useful hves of the assets 1s not cap1tahzed Deprecial!on 1s computed usmg the stra1ght-hne method The School D1stnct does not cap1tahze book collecl!ons or works of art \n \nCapllahzat10n thresholds and estimated useful hves of capital assets reported m the D1stnct-w1de statements are as follows \n \nCap1tahza11on Pohcy \n \nEstimated Useful Life \n \nLand and Land Improvements Bmldmgs and Improvements Eqmpment \n \nAny Amount $ 5,000 00 $ 5,000 00 \n \nNIA 20 to 80 year, \n4 to 12 year; \n \nDepreciallon 1s used to allocate the actual or estimated h1stoncal cost of all capital as,cts over esl!mated useful hvcs \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obhgat1on bonds to provide funds for the acqms111on and construcuon of maJor capital fac1ht1es Bond issuance costs are recogmzed m the financial statements dunng the fiscal year bonds arc issued General obhgat10n bonds are d1rect obhgat1ons .md pledge the full faith and credit of the government The outstdndmg Jmount of these bond; 1; recorded m the Statement of Net Assets \n \nDEFICIT FUND BALANCES \n \nThe fund reporting a deficit fund balance at June 30, 2002, 1s as follows \n \nfund Type/fund Name \n \nDeficit Balance \n \nGovernmental Fund Type Capital ProJects Fund \n \nS I .278.742 07 \n \nThe School D1stnet approved a plan to transfer $203,000 00 from the General Fund each year for the next five years to the Capital ProJccts Fund startmg m fiscal year 2002 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMFNTS \nJUNE 30. 2002 \n \nEXHIBIT \"H\" \n \nNote 3 DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sect10n 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of sec unties pledged shall be equal to not less than 110 percent of the pubhe funds being secured after the deduction ofthe amount ofdeposit msurance If a depository elects the pooled method (OCGA 45-8-13 1) the aggregate of the market value ofthe secunt1es pledged to secure a pool ofpubhc funds shall be not less than 110 percent of the daily pool balance OCGA Section 45-8-11 (b) provides an officer holding pubhe funds may, m his d1scret10n, waive the requirement for secunty in the case ofoperatmg funds placed in demand deposit checking accounts \nAcceptable secunty for deposits consists of any one of or any combination of the following \n(I) Surety bond signed by a surety company duly qualified and authonzed to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporat10n, \n(3) Bonds, bills, notes, ceruficates of indebtedness or other direct obhgahons of the Umted States or of the State of Georgia, \n(4) Bonds, bills, notes. cerll ficates of indebtedness or other obhgat1ons of the counties or mumc1paht1es of the State of Georgia. \n(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose, \n(6) Industnal revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and \n(7) Bonds, bills. notes, certificates of indebtedness, or other obhgat1ons of a subs1d1ary corporation of the Umtcd States government. which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obhgat1ons 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 Assoc1allon, and the Federal National Mortgage Assoc1allon \nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $8,730,353 43 The amounts ofthe total bank balances are classified into three eategones of credit nsk \n \n- 20- \n \n DOUGHERTY COUNTY BOARD OF EDUCA\"ITON NOTES TO !HE BASIC FINANCIAL STAT[MEl\\'TS \nJUNb 30. 2002 \n \nEXHIBIT\"H\" \n \nNote 3 DEPOSITS AND INVESTMENTS \n \nCategory 1 - Cash that 1s msured (e g, Federal depository insurance) or collaterahzcd with sccunties held by the School D1stnct or by the School D1stnct's agent m the School Dtstnct's name \nCategory 2 - Cash collaterahzed with secun!Ies held by the pledgmg financial msutut1on's trust department or agent m the School D1stnct's name \nCategory 3 - Uncollaterahzcd deposits (This mcludcs any bank balance that 1s collatemhzcd with secunties held by the pledgmg financial msutut10n, or by It~ trust department or agent but not m the School D1stnct's name ) \n \nThe School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows \n \nRisk Category \n \nBank Balance \n \nI \n \n$ 809,385 85 \n \n2 \n \n000 \n \n3 \n \n7.920.967 58 \n \nTotal \n \nS...73Q,353,41 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School D1stncl's total mvestmenls was S32,479,796 05 which 1s matenally the same as fau value This mvestment consisted entuely of funds mvestcd m the Local Government Investment Pool adm1mstcred by the State ofGeorgia, Office ofTrcasury and Fiscal Services which are not reqmred to be categorized smcc the School D1stnct did not own any specific 1dent1fiable secuntJes m the pool The mvestment pohcy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1d11y Portfoho) does not provide for mvestmcnt m denvat1ves or similar mvcstments A descnpt1on ofthe Pnmary L1qu1d1ty Portfolio 1s as follows \n \nThe Primary L1qu1d1ty Portfoho consists of Georgia Fund I, which 1s a combmat1on local and slate government mveslment pool, and Fund 6 Georgia Fund I 1s a stable net asset value mveslmcnt pool which follows Standard and Poor's cntena for MAm rated money market funds The pool is not registered with the SEC as an mvestment company but does operate Georgia Fund 1 m a manner consistent with Ruic 2a-7 of the Investment Company Act of 1940 and 1s considered lo be a Rule 2a7 hke pool The pool's pnmary obJectives arc safety of cap1lal, mvcstment mcome, hqmd1ty and d1vers1ficat10n while mamtammg pnnc1pal ($1 00 per share value) Net asset value 1s calculated weekly to ensure ~tab,hty The pool d1stnbutes cammgs (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 cqmvalents and mvestments are reported at cost which approximates fau value The pool docs not issue any legally bmdmg guarantees to support the value of the shares Part1c1pat1on m the pool 1s voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies. colleges and umvers1Ues, and current operatmg funds of the Slate of Georgia's General Fund \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2002 \n \nEXHIBIT \"H\" \n \nNote 3 DEPOSITS AND INVESTMENTS \n \nInvestments in Georgia Fund 1 and Fund 6 arc dJrected toward short-term instruments such as U S Treasury obhgauons, secunties issued or guaranteed as to pnnc1pal and interest by the U S Government or any of Its agencies or instrumentahlles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was 0 12 years The average investment duration for Fund 6 on June 30, 2002, was O75 years \n \nNote 4 NON-MONETARY TRANSACTIONS \n \nThe School D1stnct receives food commod11Ies from the Umted States Department of Agriculture (USDA) for school breakfast and lunch programs These commod11Ies are recorded at their Federally assigned value See Note I - Inventories \n \nNote 5 CAPITAL ASSETS \n \nThe following 1s a summary of changes in the Capital Assets dunng the fiscal year \n \nGovernmental Act1vn1es Capital Assets, Not Bemg Deprcc1Jtcd \nLand Construction m Progress \nTotal Capital Assets Not Bemg Depreciated \nCapital Assets Bemg Depreciated Buildmgs ,md Improvements Equipment \nLess Accumulated Deprec1at1on for Bu1ldmgs ,md Improvements Equipment \nTotal CJp1tal Assets, Bemg Dcprcc1atcd, l\\ct \nGovernmental Act1V1ty Capital A!:.Sets - Net \n \nBalances July I 2001 \n \nIncreases \n \nDecreases \n \nBalances June 30. 2002 \n \ns 9.141.703 44 s 90.702 04 s -207,0{1 I 3 I s 9,025.404 17 \n16 685 819 61 11 677 601 30 -3.525.883 23 24 817 517 70 \nS 25 827 523 07 SI I 768 30114 S-3 732.884 54 S 33.862.94 I 87 \n \nS167,209,050 02 S 5.391,875 45 $-5,976,101 04 SI 66,/24,824 43 \n \n12,268,000 97 \n \nI.I 13,181 98 \n \n-786,076 59 12,595,10(1 36 \n \n75,716,959 95 8.009.994 57 \n \n2.230,839 56 770 908 45 \n \n-5.361.882 41 -777 'JI 5 90 \n \n72.585,917 10 8 002 987 12 \n \nS 95 750 096 47 S 1 503 309 42 s -622 179 12 S 98,631.026 57 \n \nSl~I ~7.1Jil9,54 s I22:Z,l.6J 2,]jj S-:1 J~~ ~~J S1 S132,19J~(i_8Acj \n \nCurrent year depreciation expense by function 1s as follows \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NO-I ES TO THE BASIC FINANCIAL STATEMfNTS \nnJNr: 30. 2002 \n \nEXHIBIT \"1-1\" \n \nNote 5 CAPITAL ASSETS \n \nlnstruct10n Support Services \nPupII Services Improvements of Instruct1onal Services Educational Media Services General Adm1mstrat1on School Admm1strat1on Busmess Admm1strat1on Mamtenance and Operation of Plant Student Transportation Sernces Central Support Services Enterpnse Operations Food Services \n \n$ 1,822,989 56 \n \n$ 5,327 74 37,970 64 98,919 05 1,992 94 105,397 69 18,526 14 23,641 38 \n556,317 79 32,732 05 2 149 25 \n \n882.974 67 295,783 78 \n \n$ 3,00L748.0l \n \nNote 6 RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) levied specifically for retirement ofoutstandmg bond pnnc1pal, interest and paying agent's fees (Debt Service Funds) arc reported as restnctcd assets m the Statement of Net Assets because thc!T use 1s hm1ted by applicable bond covenants or statutory prov1s1ons Restnctcd assets at June 30, 2002, were as follows \n \nRestncted Cash and Cash Equivalents Debt Serviles Capital Au1u1s1t10m, \nRestncted Investments Capital Acquisitions \n \nCapital ProJccts Bond Proceeds \n \nCapital ProJCCIS SPI OSI Proceeds \n \nDebt Service Funds \n \n$ \nS 1.501,78877 S 2,032,910 51 \n$ 7,019,743 86 S21,801.695 99 \n \n2,529 31 \n \nNote 7 JNTERFUND TRANSFERS \n \nlnterfund transfers for the year ended June 30. 2002, consisted of the following \n \nTran~fcr to \n \nTransfers From General Fund \n \nCapital ProJ ects Agency Funds \n \n$ 299,505 82 2.16275 \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2002 \n \nEXHIBIT \"H\" \n \nNote 7 INTERFUND TRANSFERS \n \nTransfers are used to move property tax revenues collected by the General Fund to the Capital Projects Fund to correct deficit m the Capital Projects Fund \n \nNote 8 RISK MANAGEMENT \n \nThe School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and dcstruct10n of assets, errors or om1ss10ns, jOb related illness or mjuncs to employees, acts of God and unemployment compensation \n \nThe School D1stnct part1c1pates m the Georgia School Boards Assoc1at10n Risk and Insurance Management System, a pubhc entity nsk pool orgamzed on July I, 1994, to develop and adm1mster a plan to reduce nsk of loss on account of general hab1hty, motor vehicle hab1hty, or property damage, mcludmg safety engmeenng and other loss prevenhon and control techmqucs, and to admm1ster one or more groups of self-insurance funds, mcludmg the processing and defense of claims brought agamst members ofthe system The School D1stnct pays an annual premrnm to the system for its general msurance coverage Add1t10nal coverage 1s provided through agreements by the system with other companies accordmg to theu specialty for property, boiler and machmery (mcludmg coverage for flood and earthquake), general hab1hty (mcludmg coverage for sexual harassment, molcstat10n and abuse) and automobile nsks Payment of excess insurance for the system vanes by !me of coverage \n \nFor the current fiscal year. due to the costs of available coverage, the School D1stnct s1gmficantly reduced coverage for acts of God \n \nThe School D1stnct has estabhshed a hm1ted nsk management program for workers' compensation claims A premrnm 1s charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll m order to cover esllmatcd claims budgeted by management based on known claims and pnor experience The School D1stnct accounts for claims with expenses/expenditures and hab1hty bemg reported when It 1s probable that a loss has occurred, and the an10unt of that loss can be reasonably eshmated An excess coverage insurance policy covers md1v1dual claims m excess of $250,000 00 loss per occurrence, up to the statutory hm1t \n \nChanges m the workers' compcnsat10n claims hab1hty dunng the last two fiscal years arc as follows \n \nDcgmnmg \nof Year Liah1hty \n \nClaims and Changes m Estimates \n \nClaims Paid \n \nEnd of Year Liab1hty \n \n2001 2002 \n \ns $ 274 883 59 \n \n274313 10 $ 456 602 04 $ 92 594 65 \n \n$ \n \ns 92 594 65 \n \n708 476 46 $ 450 331 54 $ 350 739 57 \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO l HE BASIC FINANCIAL STATI:,MEN IS \nJUNE 30, 2002 \n \nEXHIBIT \"H\" \n \nNole 8 RISK MANAGEMENT \n \nThe School D1stnct 1s self-insured with regard to unemployment compensation chums The School D1stnct accounts for claims within the General Fund with expenses/expenditures and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estin1atcd \n \nChanges in the unemployment compensat10n claims hab1hty dunng the last two fiscal years arc as follows \n \nBcgmnmg of Year Liab1h1y \n \nClaims and Changes m Estimates \n \nClaims Paid \n \nEnd of Year Liab1hty \n \n2001 2002 \n \n$ \n \n5 690 00 $ 35 098 00 $ 26 339 00 $ 14 449 00 \n \n$ \n \n14 449 00 $ \n \ns 13,78200 \n \n28,231 00 $ \n \n000 \n \nThe School D1stnct has purchased surety bonds to provide add1t1onal insurance coverage as follows \n \nPos11Ion Covered \nSupenntendent All Other Employees \n \nAmount \nS 50,000 00 $ 250,000 00 \n \nNote 9 SHORT-TERM DEBT \n \nThe School D1stnct issues tax ant1c1pat1on notes in advance of property tax collect10ns, depositing the proceed~ m its General Fund This short-term debt 1s to provide cash for operations until property tax collections are received by the School D1stnct Article IX, Section V. Paragraph V of the Constitution of the State of Georgia hmlls the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected m the preceding year and rcqmres all short-term debt to be repaid no later than December 31 of the calendar year m which the debt was mcurred \n \nShort-term debt activity for the fiscal year 1s as follows \n \nTax Ant1c1pat1on Notes \n \nBegmmng Balance \n \nAdditions \n \nPayments \n \nEndmg Balanc~ \n \n$ _ _o_oo. $J2.ooo QOO.llil $12 ooo oQQ.QO $~_ __,o.QQ \n \nNote 10 LONG-TERM DEBT \n \nCOMPENSATED ABSENCES Compensated absences represent obhgat10ns of the School D1stnct relating to employees' nghts to receive compensat10n for future absences based upon service already rendered This obhgat1on relates only to vesting accumulatmg leave in which payment 1s probable and can be reasonably estimated The School D1stnct uses the vesting method to compute compensated absences \n \n- 25 - \n \n DOUGHERlY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMEN IS \nJUNE 30, 2002 \n \nEXHIBIT \"H\" \n \nNote JO LONG-TERM DEBT \n \nAdd1t1onally. the accumulated compensated absences hab1hty at June 30, has not been recorded m the D1stnct-w1de financial statements as this hab1hty 1s also deemed to be 1mmatenal to the fair presentation of these financial statements. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obhgatlon Bonds currently outstandmg are as follows \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Senes 1998 \n \n3 55%- 4 10% S 7,750.000.UO \n \nThe changes m Long-Term Debt during the fiscal year ended June 30, 2002. were as follows \n \nGovernmental Funds \n \nGeneral \n \nClaims \n \nObhgat10n \n \nPayable \n \nBonds \n \nTotal \n \nBalance July I, 2001 \n \n$ 92,594 65 S15. I00,000 00 SI 5.192.594 65 \n \nAdditions Claims and Changes m Eslimates \n \n708,476 46 \n \n708,476 46 \n \nDeduct10ns Claims Paid Debt Retired \n \n450,331 54 \n \n7,350,000 00 \n \n450,331 54 7,350,000 00 \n \nBalance June 30, 2002 \n \n$ 350,739 5.1 $_7,750,000,00 S 8 100,719,57 \n \nPortion of Long-Term Debt Due w1thm One Year \n \n$--f?,2_2 L77 $ 7,750,000.00 $ 7,797.921 77 \n \nAt June 30, 2002. payments due by fiscal year which mcludes pnnc1pal and mterest for these ttems are as follows \n \nFt~cal Year Ended June 30 \n \nGeneral Obhgat1on \n \nDebt \n \nPnnc1pal \n \nInterest \n \n2003 \n \n$ 7.750,000,00 $ 238,181 25 \n \n- 26- \n \n DOUGHFRTY COUNTY BOARD OF EDI JCATJON NOTES TO THE BASIC HNANCIAL STATEMFNTS \nJUNE 30, 2002 \n \nD,'1:IIBIT \"II\" \n \nNote 11 ON-BEHALF PAYMENTS \n \nThe Board has rccogm,ed revenues and costs in the amount of $1,594,501 53 for health insurance and retirement contnbuttons paid on the Board's behalf by the following State Agencies \n \nGeorgia Department ofEducat10n Paid to the Georgia Department of Commuruty Health For Health Insurance of Non-Certified Personnel In the amount of SI ,370,337 53 \n \nOffice of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of S224. 164 00 \n \nNote 12 SIGNIFICANT COMMITMENTS \n \nThe following 1s an analysis ofs1gmficant outstanding construction or renovation contracts executed by the School D1stnct as of June 30, 2002 \n \nPro1cct \n \nUnearned Executed Contracts \n \n97 /96S-647-015 Bond ProJects SPLOST ProJects \n \n$ 2,624 48 924,527 00 \n2,227,702 64 \n \nS), 1~4.854.J 2 \n \nThe amounts descnbed in this note are not reflected m the basic financial statements \n \nNote 13 CONTINGENT LIABILITIES \n \nARBITRAGE REBATE TA..X 1 he federal Tax Refom1 Act of 1986 requires issuers of tax-exempt debt to make payments to the Umtcd States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates The U S Treasury reqmres payment every five years The esumated liab1hty of $1,426.479 79 at June 30, 2002, 1s based on tax exempt debt subJect to the Ta, Reform Act The estimated hab1hty will be updated annually for any tax-exempt issuances or changes in yields through fehruary 24, 2003, at which l!me payment of the final calculated liah1hty for the five-year penod 1s rcqmrcd to be remitted \n \n- 27 - \n \n DOUGHERTY COUNTY flOARD OF l:,DUCATION NOTI:,S TO THE BASIC FINANCIAL STATEMFNTS \nJUNE 30. 2002 \n \nEXHIBIT\"H\" \n \nNote 13 CONTINGENT LIABILITIES \nAmounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies This could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms An audit by the Federal Emergency Management Agency lFEMA) conducted on the School D1stnct\"s Disaster Assistance cl.urns resulted m questioned costs totalhng $1,032.756 00 The School D1stnct 1s m the process of appealing the questioned costs with the mtent1on ofreducmg the amount to be refunded Other than the questioned costs pertammg to Disaster Assistance claims identified by FEMA, the School D1stnct beheves that d1sallowances pertammg to other grantors, 1f any. will be 1mmatenal to its overall financial position \nT11e School D1stnct 1s a defendant m vanous legal proceedings pcrtammg to matters mc1dcntal to the performance of routme School D1stnct operat10ns The ulhmate d1spos1t1on ofthese proceedmgs 1s not presently determmable, but 1s not beheved to be matenal to the basic financ1aJ statements \nNote 14 ACCUMULATED EMPLOYEES\" LEAVE \nThe Board\"s admm1stratlve staff and certam other full-time employees earn up to one and one-half days per month of vacation leave Vacat10n leave may be accumulated to a maximum of30 days Employees are paid, at their current rate of pay, for unused accumulated vacalion leave up to the maximum upon retirement or termmal!on of employment \nNote 15 RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nTRS PLAN DESCRIPTION Substantially all teachers, adm1rustrative and clencal personnel employed by local school systems arc covered by the Teachers Retirement System of Georgia (TRS), which 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 issue~ a separate stand alone financial audit report and a copy can be obtained from the Gcor!,'la Department of Audits and Accounts \nTRS CONTRIBUTIONS REQUIRED AND MADE :mployecs of the School D1stnct who are covered by TRS arc rcqmred by State statute to contnbute 5% ofthe1r gross eammgs to TRS The School D1stnct makes monthly employer contnbut10ns to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as adVJsed hy their mdependcnt actuary The requITed employer contnbuhon rate 1s 9 24% and employer contnbul!ons for the current fiscal year and the prccedmg two fiscal years are as follows \n \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCA1 ION NOTES TO IHI:- BASIC FINANCIAL STATEMENTS \nJUNE 30, 2002 \n \nEXIIIBIT \"H\" \n \nNote 15 RETIREMENT PLANS \nFiscal Year \n2002 2001 2000 \n \nPercentage Contnbuted \n100% 100% 100% \n \nReqmred Contnbut1on \n$ 6,536,754 61 $7,915,384 94 $ 7,855,641 03 \n \n- 29- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30 2002 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for SeMces Investment Eammgs M1Scellaneous \nTotal Revenues \nEXPEND!TURES \nCurrent lnstrucbon Support Services Pupil Services Improvement of Instructional Services Educational Media SeMces General Admm1strat10n Sd\"lool Adm1mstrabon Business Admm1strat1on Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterpnse Operations Community Services Food Services Operabon \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES! \nOther Sources Other Uses \nTotal Other F1nancmg Sources (Uses) \nSPECIAL ITEMS \nProceeds from Sale of Bulldmgs Proceeds from Sale of Land \nTotal Special Items \nNet Change 1n Fund Balances \nFund Balances - Begmmng \nFund Balances  Ending \nSee notes to the basic financial statements \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ 31,506 173 00 $ 3150617300 $ 31,484 335 84 \n \n435,000 00 \n \n435 000 00 \n \n557 764 71 \n \n73,695,625 60 \n \n74 314,741 20 \n \n83,748 361 11 \n \n16,978,986 90 \n \n20,566,028 45 \n \n16,599,182 48 \n \n2 034,288 96 \n \n2,184,982 01 \n \n2 24122982 \n \n165,806 00 \n \n165,806 00 \n \n245,672 02 \n \n2,061,090 00 \n \n2,329,347 61 \n \n2 412 709 74 \n \ns $ 126 876 970 46 $ 131,502,078 27 \n \n137,289,255 72 \n \n$ 78,294 104 43 $ 80,868,752 05 $ 88,651 442 20 \n \n4,123,817 35 4 207,650 31 3,026,179 43 2 053,231 80 7,834,609 62 1,818,333 62 9,397 443 17 4,148,746 67 1,741,057 82 \n56,948 28 318,672 51 838,053 96 8 674 895 49 \n1950000 \n \n5,004,213 70 4,862,277 87 3,053,533 85 1,959,908 74 7,858,542 41 1,840 526 65 9,270,377 86 4,207 002 85 1,874,087 33 \n100,395 79 616,457 73 946,899 08 8 947,609 86 \n90 265 79 \n \n4 979,791 34 4 758,170 94 3 533,085 77 1522,15322 8,601,012 46 1,758,41061 9,628 890 31 4,698 743 79 2,205 380 23 \n71 027 85 475 005 77 860,940 47 8,055,464 38 102 004 72 \n \n$ 126 553 244 46 $ 131,500,851 56 $ 139,901,524 06 \n \n$ \n \n323 726 00 $ \n \n1 226 71 $ \n \n-2,612,268 34 \n \n$ \n \n280,128 00 $ \n \n291,516 72 $ \n \n30 654 71 \n \n-935 340 50 \n \n-491 876 72 \n \n-301 668 57 \n \n$ \n \n-655 212 50 $ \n \n-200 36000 $ \n \n-27101386 \n \n$ \n \n0 00 $ \n \n000 $ \n \n943,352 66 \n \n595 662 34 \n \n$ \n \n0 00 $ \n \n0 00 $ \n \n1539015 00 \n \n$ \n \n-331 486 50 $ \n \n-199,133 29 $ \n \n-1,344,267 20 \n \n7 861 631 51 \n \n7,861 631 51 \n \n6 923 466 99 \n \n$ \n \n7 530 145 01 $ \n \n7 662 498 22 $ \n \n5 579199 79 \n \n- 30- \n \n DOUGHERTY s,Q!,ltfIY 6QARD OF EDUCATIQN \n~!;;H!;D!,!LE OF !;llPENDITURE~ QF EEQ~BAs AWAADS \nYEAR ENDED JUNE 30 2002 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY \nPRQ!,RAM'GRANT \nAgr1cutture u S Department of \nChild Nutrrtion Cluster Pass-Through From Georgl.a Department of Educabon Food and Nutnllon Program Food ServtC8S Sdlool Breakfast Program Nabonal Sdiool Lundi Program \nTotal Child NutntJon Cluster \nOlher Programs Pass-Through From Georgl.a Department of Education Focxt and Nutnllon Program \nFood Services Food Di.strlbut.10n Program (1) \nTotal U S Department o! Agnculture \nEducabon U S Department of Speoal Education Cluster Pass-Through From Georgia Department of Educ:al.Jon Individuals wrth OlsablhtJes Educabon Ad Part B - Speaal Education Flow Through Georgia Leaming Resources System Preschool Severely Emotionally D1stwbod Speaal Pro,ad - H,gh Sdlool/H,gh Tedi Capaoty Budding Improvement Capacity 8U1ld1ng - GLRS \nTotal Speoal Education Cluster \nOther Programs Direct lmpadAid Pass-TIYough From Chattahoochee-Flint Regional Educa11onal Sorvic:e Agency d/bla Two Rivers Mtgranl Educal1on Agency Elementary and Secondary Education Act Title I Mtgrant Education Pass-TIYough From Georgia Department of Education Comprehensive School Reform Demonstration PrOJed Elementary and Secondary Education Act Title I Grants to Local Educational Agenoes Title II Eisenhower Profcsslonal Development n11e111 Tedmology Literacy Challenge Fund Grants T1UeVI lnnovab'/8 Education Program Stralegres Class Stze Redud.Jon lndlVlduals with 01sab1Lllles Education Act Speaal Education Part B State Program Improvement Gf\"anl!. for Children wrth DlsablUbes Goals 2000 State and Local Education Systemic Improvement Grams \n \nCFDA NUMBER \n10 553 10 555 \n10 550 \n84 027 84 027 84173 84 027 84027 84 173 84 027 \n84 041 \n84 011 84 332 84 010 84 281 84 318 84 298 84 340 \n84 323 84 276 \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nNIA \n \n$ 190673361 \n \nNIA \n \n3 900.724 55 s \n \ns s 5 807 458 16 \n \n(2) 7 806 735 52 (3) \n7 806 735 52 \n \nNIA \n \n358 374 28 \n \n$ 6 165 832 44 $ \n \n358 374 28 8 165 109 80 \n \nNIA \n \ns 1512191 56 $ \n \nNIA \n \n146 329 26 \n \nNIA \n \n11517301 \n \nNIA \n \n180 097 37 \n \nNIA \n \n47 911 26 \n \nNIA \n \n45 947 15 \n \nNIA \n \n10 738 80 \n \ns $ 2 058,388 41 \n \n1 512 191 56 159 231 47 (3) 11517301 180 097 37 4791126 45,947 15 10 738 80 \n2,071 290 62 \n \n178 806 50 \n \n(5) \n \nNIA \n \n25 062 44 \n \n25 647 02 (3) \n \nNIA \n \n23 770 68 \n \n23 770 68 \n \nNIA \n \n5 912 490 66 \n \n591400120 (3) \n \nNIA \n \n62 320 29 \n \n62 320 29 \n \nNIA \n \n96 436 47 \n \n96,436 47 \n \nNIA \n \n169 375 89 \n \n169,375 89 \n \nNIA \n \n933,559 00 \n \n950 133 80 (3) \n \nNIA \n \n46,399 22 \n \n46 399 22 \n \nNIA \n \n146 453 53 \n \n146,453 53 \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30 2002 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nEducation, U S Department of Other Programs PassTIYough From Georgia Department of EducaUon Safe and Drug-Free Schools and Communltles Vocabonal Education  Basic Grants to Slates High School Program BaSlcGrant Pass-Through From Georgia Department of Human ReSOU\"ces Safe and Drug Free Sdlools \nTotal U S Department of Educal.Jon \nHealth and Human SeMces U S Department of Pass-Through From Georgia Department of H001an Resources \nCtuld ca\"' School Age Program \nLabor, U S Department of Pass-Ttvough From Southwest Georgia Regional Educabonal Development Center Workforce lnwstment Ad SeMc:aleam1ng Youth (YETP) Provk:hng Rewarding Youth Achievement SeMceS (RYA) \nTotal U S Department of Labor \nDefense, U S Department of Dired Department of the Air Force R O T C Program Department of the Manne Corps R O T C Program \nTotal U S Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n84186 84 048 84186 \n \nNIA \n \n$ \n \n72 366 00 $ \n \n117 912 82 (3) \n \nNIA \n \n284 211 42 \n \n284 211 42 \n \nNIA \n \n9 500 00 \n \n9 500 00 \n \n$ 1001914051 $ _ __.9..,9c,_17=45\"2\"96\"'- \n \n93 525 \n \nNIA \n \n$ \n \n23 768 74 $ ---~23=76\"'8'-'7'-'-4 \n \n17 249 17 255 \n17 998 \n \nNIA \n \n$ \n \nNIA \n \n62 163 80 $ 73,589 67 \n \n62163 80 79 099 84 (3) \n \nNIA \n \n133 081 07 \n \n13308107 \n \n$ \n \n268 834 54 $ _ __,2\"-74:=344=.7!...!.1 \n \n$ \n \n47 890 50 \n \n(4) \n \n73 715 75 \n \n(4) \n \n$_~1~2~16:,06=2=5 \n \nTotal Federal F1oaooal AssLStance \n \ns rn 159911s2 48 s___18...38=o\"',6\"'7\"6\"2..,1 \n \nNIA II Not Available \n \nNotes to the SdledYIB Of Expenditures of Federal Awards \n \n(1) The amounts shown for the Food Otstnbulton Program represents the Federally asSJgned value of nonmonetary assistance for donated commodrt1es recetved and/or consumed by the School Dlslnct dunng the current fiscal year \n(2) Expenditures for the School Breakfast Program were not ma1n1amed separately and are mciuded m the 2002 Nabonal School Looch Program \n(3) Expenditures for this program include State and/or Other Funds Expenditures are not ma1nta1ned by hmd source \n(4) Expenditures on ttus program were not maintained by fund source (5) Funds earned on ttus program do not require reporbng of expenditures \n \nMaJor Programs are ldenbfied by an astensk (*) In front of the CFDA number \n \nThe School 01:stnd did not provide Federal Assistance to any Subreapien1 \n \nThe accompanying schedule of expenclrtures of Federal awards lnducles the Federal grant activity of the Dougherty County Board of Educabon and Is presented on the modified acaual basis of accounting which Is the basis of accolnlng used ln the presentation of the basic financial statements \n \nSee notes to the baslc financial statements \n \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early lnterventron (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wrth D1sab11it1es Category I Category II Category Ill Category IV Category V Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Twenty Days Add1t1onal Instruction Indirect Cost Central Administration School Admin1strat1on Facility Maintenance and Operatrons Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnnc1pal Supplements Vocational Supervisors Mid-term Ad1ustment Hold-Harmless Educatmn Equalization Funding Grant Food SeN1ces Vocational Education Other State Programs Apprent1cesh1p Program Georgia Leaming Resources System Health Insurance K-3 Statewide Reading Program 4-8 Statewide After School Program \n- 33 - \n \nGENERAL FUND \n \n$ \n \n5,371,454 00 \n \n498,421 00 \n \n12.624,221 00 \n \n1,088 500 00 \n \n6,073.890 00 \n \n779.125 00 \n \n1,250.854 00 \n \n9,436,304 00 \n \n7,812.725 00 \n \n1.931, 178 00 \n \n336,834 00 3,360.686 00 3,320.590 00 \n683,533 00 116.876 00 \n18 328 00 1.102,973 00 \n479,462 00 761,641 00 \n21,81300 1,781,471 00 \n274.358 00 557,18500 \n \n1,808,877 00 3,299.827 00 4,267,495 00 \n \n1,721,175 00 478,006 00 320,019 00 67.308 00 67.498 00 167.984 00 \n4,580.158 00 491.460 00 21.722 61 \n50.000 00 87.624 00 1,370,337 53 225,424 32 98,384 41 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2002 \nAGENCY/FUNDING \nGRANTS Education, Georgia Department of Other State Programs K-3 Statewide Reading ~rogram - SEO Mentor Teachers Outdoor Classrooms Preschool Handicapped Program Severely Emotionally Disturbed Student Achievement Technology/Career High Schools That Work Lottery Programs Ass1st1ve Technology Computers m the Classroom Post Secondary Options \nOffice of the Governor Georgia Challenge Program \nOffice of School Readiness Pre-Kindergarten Program \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Educanon, Georgia Department of After School Programs Foreign Language Model Program \n \nSCHEDULE \"3\" \n \nGENERAL FUND \n \n$ \n \n2,000 00 \n \n11,628 00 \n \n749 01 \n \n225,675 00 \n \n2,177,696 77 \n \n679,592 67 \n \n16,000 00 \n \n25,117 52 415,325 00 \n5,147 00 \n \n20,000 00 \n \n947,401 31 \n \n224,164 00 \n \n37,742 40 154 400 56 \n \nSee notes to the basic finanetal statements \n \n- 34 - \n \n D:Q.UGHERTY COUND'. BOARD OF EDUCATION \nSCHEDULE OF APPROVED LOCAL QPTIQN SALES TAX PROJECTS \nYEAR ENPEP JUNE 30 2002 \n \nSCHEDULE '\"4~ \n \nPROJECT \nThe acqwsltJon constn.Jcbon and equipping of su n8'N elementary physical educabon facihbes two n8'N TTVddle sdlools supply seMces freezer completion or expans10n program at five schools roof replacemenl on 24 buudlngs technok)gy power upgrade on 30 bu11d1ngs ce1lmgs and lights m 27 \nbLnld1ngs, HVAC upgrades on 24 buildings four new high school field hot.Jae,, three support facillbes for new elementary schools renovabOn of Mcintosh Teadler Academy renovaoon or five SChools Highland \nconvel'!.lon underslab pluml:Kng replaeement \nIn 17 bt.nldmgs asbestos removal at 48 !lies \nlaY.1\"1 revrtahzatlon at 30 sites facillbes departmBllt shops tower, media 98MCe center secunty hghl.Jng al 28 Sites sports f\\eld lighting at four sites and 41 new vetuc:les 1nciudlng the acqul!rtlon of au necessary property the maximum cost of such proJeCts not lo exceed $88 653 060 00 \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED \nCOSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \ns 88 8531060 00 s 100 206 768 21 s 14 479 450 55 s 73 910 428 49 Ongomg \n \n(1J 1he Sc:hool Distnc:rs ongmal cost esl.Jmate as spoofl8d m the resohJI.Jon calling tor the Impos1uon of the Local Opbon Sales Tax \n \n(2) Toe School D1stnc:t's current estimate of total cost tor the prOjecl Includes all cost from prOject mceptLOn to c:omplebon \n \n(3) The voters of Dougherty County approved I.he 1mpo51Uon of a 1% sales tax to fund the above proJect and retire assoc:,ated debt Amo1.mt5 expended for this ptqect may andude sales tax proceeds stato, local property taxes \nandlOI\" other funds over the life of the project \n \n(4) In addlbon to the expenditures shown above the School D1stnd has incurred Interest expense to provide advance funding \nIOI\" the above prOjects as follows \n \nPrior Year \n \ns 3 639 030 21 \n \nCurrent Year \n \n592 712 50 \n \nTotal \n \nI _..;4=23a.1\"'7\"4a;2.7..._1 \n \nSee notes to the ba5'c: financ:aal statements - 35 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAM fQBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM \nYEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect tnstructlanal Programs Kindergarten Program Kmdorganen Program-Earty Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Earty lntervenhon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-EMy Intervention (4-5) Program I\\Mdle Grades (6-8) Program Mlddle School (6-a) Program High School General Education (9-12) Program Vocal.Jona! Laboratory (9-12) Program Students wrth Disabllllles Category I Category 11 Ca1egory Ill Ca1egory IV Gifted Sludenl - Calegory V1 Remedlal Educatron Program AHematrve Education Program Enghsh Speakers o1 Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Slaff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \ns \n \ns s 532212300 \n \n5 209 357 23 \n \ns 37,866 49 \n \n5 247,223 72 \n \n493 588 00 \n \n863,894 58 \n \n451 30 \n \n864,345 88 \n \n12 519 906 00 \n \n11,173,83724 \n \n553 673 57 \n \n11727,51081 \n \n1 078 379 00 \n \n1,169,037 09 \n \n1169,037 09 \n \n6 024,337 00 \n \n8,094,499 66 \n \n91,433 24 \n \n8 185 932 90 \n \n771 561 00 \n1,240 423 00 \n9 355,627 00 \n7,767,680 00 \n1937,98900 \n7 771,570 00 \n1 0934ll600 474 783 00 754 693 00 21 582 00 \n \n73,807 86 1,380,243 91 \n10,364 015 00 \n10,345 369 59 2 345 760 57 \n306 653 20 3,031 219 14 2,917 746 89 \n348 628 06 \n717,055 57 9,913 43 \n518,153 66 \n \n40 984 07 309 68640 \n41571967 210 484 49 \n15,799 20 61,323 73 41,179 73 1381169 17,22994 \n169,249 40 \n \n73 807 86 1 421,227 98 10 673 701 40 10,781 089 26 \n2 556 245 06 \n322,452 40 3 092,542 87 2 958,926 62 \n362 439 75 734 285 51 \n9,913 43 687,403 06 \n \ns \n \ns s s 56,627,727 00 \n \n58 869 192 68 \n \n1,978 892 92 \n \n60 848 085 60 \n \n1 812,260 00 317,232 00 \n \n2 353,456 80 134 985 18 \n \n388,252 73 225,265 37 \n \n274170953 360 250 55 \n \nTOTAL QBE FORMULA FUNDS \n \ns \n \ns s 58 757 219 00 $ 61 357 634 66 \n \n2,59241102 \n \n63 950 045 68 \n \n(1) Compnsed of Stale Fi,lds plus Local FM! MIii Share \n \nSee notes to the baslc f1.r1anoal statements \n \n-36- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE} \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"6\" \n \nSITE \nLamar Reese Elementary School Allee Coachman Elementary School Martin Luther King, Jr Elementary School Albany High School Highland Middle School Monroe High School Radium Spnngs Middle School Sylvandale Elementary School Albany Middle School Dougherty Comprehensive High School Isabella Elementary School Magnolia Elementary School Morningside Elementary School Sylvester Road Elementary School Dougherty Middle School Jackson Heights Elementary School Norths1de Elementary School Turner Elemenlary School Lake Park Elementary School Merry Acres Middle School Palmyra Elementary School Sheiwood Elementary School Westover High School Lincoln Fundamental School Mock Road Elementary School Radium Spnngs Elementary School Southside Middle School Wesl Town Elementary School Exceptional Students Program Phoenix School And Suspension Center Central Office (Alternative Education Program) Other Auxiliary Facility \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \ns \n \n1,831,129 00 $ \n \n1,777,808 33 \n \n1,869,707 00 \n \n1,943.346 99 \n \n1,854.437 00 \n \n1,717.251 23 \n \n2,731,086 00 \n \n3,272.428 39 \n \n1,240.423 00 \n \n1,411,59576 \n \n3,542.777 00 \n \n4,064,041 32 \n \n2,089.684 00 \n \n2,402,338 56 \n \n1,476,112 00 \n \n1,553, 139 27 \n \n1,698,940 00 \n \n1.927,944 61 \n \n3.389,390 00 \n \n3.736.864 66 \n \n252,402 17 \n \n2,461,318 00 \n \n2,339.643 79 \n \n1,956,864 00 \n \n2,027,012 70 \n \n1,961.543 00 \n \n1,833.935 71 \n \n3,164.760 00 \n \n3,050,877 94 \n \n1,499,234 00 \n \n1,437,052 81 \n \n1,936,349 00 \n \n1,747 023 34 \n \n1,744,035 00 \n \n1.574,282 91 \n \n2,085,740 00 \n \n1,935,044 17 \n \n2,808.959 00 \n \n2,766.615 96 \n \n256,398 29 \n \n1,902,847 00 \n \n1,762.910 03 \n \n3 422,051 00 \n \n3760.70513 \n \n2,420.989 00 \n \n2 450,475 77 \n \n1,406,135 00 \n \n1,520.290 84 \n \n1.498 571 00 \n \n1,394,794 37 \n \n2,129,267 00 \n \n2, 182,223 25 \n \n1,750,687 00 \n \n1,585 829 07 \n \n1 892,790 55 \n \n603,413 30 \n \n754,693 00 \n \n667 604 38 \n \ns \n \n56.627 727 00 $ 60,848,085 60 \n \nSee notes to the basic finanaal statements \n \n- 37 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n :1,s.,m,1. W. H1N Io:-. \nSIATE AUrmon \n'~C4\\ , ,i;..;,174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 \\V.1...,hmgton S1rcet SW Su,tc 21.\\ i\\llJntJ (,corgi.1 ,()1'14-8400 \nMarch 14. 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducauon \nand Supenntendcnt and Members of the Dougherty County Board of Educahon \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen \nWe have audited the financial statements ofDougherty County Board ofEducatmn as ofand for the year ended June 30. 2002, and have ISsued our report thereon dated March 14, 2003 This report was quali lied for a departure from generally accepted accounting pnnc1plcs, as 1den1Ified in the auditor's report on the basic financial statements We conducted our audit in accordance with auditing ~tandards generally accepted in the Umted States of America and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the United States \nCompliance \nAs part of obtammg reasonable assurance about whether Dougherty County Board of Education's lin,mcial statements are free of matcnal misstatement, we performed tests of its compliance with certain prov1smns oflaws. regulations. contracts and grdllts, noncompliance with which could have a direct and material effect on the detern1ina1Ion of financial statement amounts However. providing dn opmmn on compliance with those prov1s1om was not an objective of our audit. and accordingly. we do not express such an opinion The results ofour tests disclosed no instances of noncompliance that are reqmred to be reported under Government Auditing Standards \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dougherty County Board of Educatmn's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2002YB-40 \n \n control over financial reportmg However. we noted certam matters mvolvmg the mtcrnal control over financial rcportmg and lls opcratwn that we consider to be reportable cond11ions Reportable cond1t1ons mvolve matters corning to our attention relatmg to s1gmficant dcfic1enc1cs m the design or opcratwn of the mtemal control over financial reportmg that, m ourJudgment, could adversely affect Dougherty County Board of Education's ab1hty to record. process, summanLe and report financial data consistent with asscrtwns of management m the financial statements Reportable condllwns are dcscnbed m the accornpanymg Schedule ofFmdmgs and Questwned Costs as items FS-6471-02-01 and FS-6471-02-02 \nA rnatenal weakness 1s a cond1t1on m which the design or operation of one or more of the mtemal control components does not reduce to a relalively low level the nsk that misstatements m amounts that would be rnatenal m relalion to the financial statements bemg audited may occur and not be detected wllhm a timely penod by employees in the normal course of performing their assigned funclions Our cons1deratwn of the mtemal control over financial reportmg would not necessanly disclose all matters m the mtemal control that might be reportable cond1t1ons and, accoFdmgly, would not necessanly disclose all reportable cond11ions that are also considered to be rnatenal weaknesses However, of the reportable cond1t1ons descnbed above, we consider item FS-6471-0201 to be a rnatenal weakness \nThis report 1s mtcnded solely for the mformat1on and use of the audit cornrn1ttcc, management, members of the Dougherty County Board of Education, Federal awarding agencies and pass-through entitles and is not mtendcd to be and should not be used by anyone other than these specified parties \nRespectfully submitted, \n \nRWH !,'P 2002YB-40 \n \nk).~~ \nHmton State Auditor \n \n IIS.Stl I W. Ill'\u003c !Or\\ \n$TATF AUnllOft \n(4.J-1 f-,~F,.. '1 /4 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 W,1,hmg1on 'itrcct '\"\u003e W Su1h.' 214 Atl,rnlJ, ( ,corg1.l 1()114-8400 \nMarch I4, 2003 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Supcnntendcnt and Members of the Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUlREMEl\\'TS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OYER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen \nCompliance \nWe have audited the compliance of Dougherty County Board of Educat10n with the types of compliance requirements descnbed m the US Office of.Ma11agcme11t a11d Budget (0MB) C11c11/ar A-133 Compha11cc Suppleme11t that are applicable lo each of1ts maJor Federal programs for the year ended June 30, 2002 Dougherty County Board of Education's ma.,or Federnl programs are identified m the Summary of Auditor's Results Section of the accompanying Schedule of Fmdmgs and Questioned Costs Compliance with the rcqmrements of laws. regulations, contracts and grants applicable lo each of its maJor Federal pro1,'fllms 1s the respons1b1hty of Dougherty County Board of Educat10n's management Our respons1b1hty 1s lo express an opm10n on Dougherty County Board of Education~ compliance based on our audit \nWe conducted our audit of compliance m accordance with aud1tmg standards generally accepted m the Umted States of Amenca, the standards applicable to financial audits contained m Government Aud1lmg Standards, issued by the Comptroller General of the Umted States, and 0MB Circular Al 33. Audits of States, local Governme11ts, a11d No11-Pro(it Orgam=atw11s Those standards and 0MB C1rcular A-133 require that we plan and perform the audit to obtam rea~onable assurance ahout whether noncompliance wnh the types ofcompliance requ1rements referred to dbovc that could have a direct and malenal effect on a maJor Federal progrnm occurred An audit includes exammmg, on a test has1s, evidence about the Dougherty County Board of Educallon's compliance with those requirements and perfonmng such other procedures as we considered necessary m the circumstances We bcheve that our audit provides a reasonable basis for our op1mon Our audll does not provide a legal detcrmmatlon on Dougherty County Board ofEducation's compliance with those requ1remcnts \n2002SA-30 \n \n In our opinmn, the Dougherty County Board of Education comphe\u003cl, in all matcnal respects, with the requirements referred to above that arc applicable to each of Its maJor Federal programs for the year ended June 30, 2002 \nInternal Control Over Comphance \nThe management of Dougherty County Board of Educatmn 1s responsible for establishmg and maintammg effective mtemal control over compliance with reqmrements of laws, regulatmns. contracts and grants applicable to Federal programs In plannmg and pcrforrnmg our audit. wc considered Dougherty County Board of Education's mternal control over compliance with requirements that could have a direct and matenal effect on a maJor Federal program m order to detcrmme our aud1tmg procedures for the purpose of expressing our opm1on on comphance and to test and report on mternal control over compliance m accordance with 0MB Circular A-133 \nWe noted certain matters involving the internal control over comphance and its operation that we consider to be reportable cond1t1ons Reportable cond1t1ons mvolve matters commg to our attenlion relatmg to s1gmficant defic1enc1es m the design or operation ofthe internal control over compliance that, m our Judgment, could adversely affect the Dougherty County Board ofEducatmn's ability to administer a maJor Federal program in accordance with applicable requirements oflaws. regulations. contracts and grants Reportable cond1!Ions are dcscnbcd m the accompanying Schedule ofFindings and Questioned Costs as items FA-6471-02-01 and FA-6471-02-02 \nA matcnal weakness 1s a cond1t1on in which the design or operation of one or more of the mtemal control components docs not reduce to a relatively low level of nsk that noncomphancc with the apphcable reqmrements oflaws. regulations, contracts and !,'1allts that would be matenal m relation to a maJor Federal program bemg audited may occur and not be detected within a timely penod by employees m the normal course of performing their assigned funcuons Our consideration of the mternal control over comphance would not necessanly disclose all matters m the internal control that might be reportable conditions and, accordmgly, would not neccssanly disclose all reportable cond1110ns that are also considered to be matenal weaknesses However, we believe none of the reportable conditions descnbcd above 1s a rnatenal weakness \nThis report 1s mtended solely for the information and use of the audit committee, management. members ofthe Dougherty County Board of Education, Federal awarding agencies and pass-through entitles and 1s not intended to be and should not be used by anyone other than these specified parties \nRespectfully submitted, \n \nRWH !,'P 2002SA-30 \n \nState Auditor \n \n SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-647 I-99-02 FS-6471-00-0 I FS-64 71-00-02 FS-6471-00-04 FS-6471-00-05 FS-6471-01-01 FS-6471-01-02 FS-6471-01-03 FS-6471-01-04 \n \nPreviously Reported Corrective Acton Implemented Further Action Not Warranted Previously Reported Corrective Acton Implemented Unresolved - See Correcllve Action/Responses Further Action Not Warranted Unresolved - See Correcuvc Action/Responses Prev10usly Reported Corrective Acton Implemented Unresolved - See Corrective Action/Responses Partially Resolved - See Correcuve Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Leave Records Amount $5, I56 11 Fmdmg Control Number FS-6471-00-04 \n \nThe Dougherty County School System 1s m the process of retncvmg all overpayments through payroll deductions Underpayments will be paid m full \n \nSick leave 1s monitored throughout the Dougherty County School System The sick leave records will be mamtamcd m accordance wtth the Dougherty County School System sick, personal and vacahon leave policies \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Fmdmg Control Number FS-6471-01-01 \n \nDunng fiscal year 2001. the Dougherty County Board of Education approved the plan to fund $1,015,000 of the deficit m the Capital Projects - Regular Projects Funds by budgelmg and transfcmng $203,000 from the General Fund to the Capital Projects Regular Projects Funds each year for the next five years As of the date ofth1s re,ponse, transfers for fiscal years 2002 and 2003 have been completed For the rcmammg project deficit, the School D1stnct 1s currently rev1ewmg project expenditure~ with the Feder.ii Emergency Management Agency to determmc whether add111onal fundmg 1s available \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Salary Overpayment Inadequate Leave Records Amount $3,299 56 Fmdmg Control Number FS-6471-01-03 \n \nThe Dougherty County School System 1s retnevmg all overpayments at this lime (2003 school year). All underpayments will be paid m full \n \nSick leave 1s mamtruned throughout all the schools m the System The sick leave records will be accurately mamtamcd m accordance with the Dougherty County School System sick, personal and vacal!on leave policies \n \nGENERAL LEDGER Detailed L1stmg of Salanes and Travel Not Reconciled Fmdmg Control Number FS-6471-01-04 \n \nIn March 2002, the School D1stnct implemented procedures to ensure that salary and travel reports arc accurate and properly reconciled to the general ledger pnor to subm1ss10n ofthe reports to the State The salary reconc1hat10n procedures were implemented m conJunction with the conversion to an m-house payroll system server, which allowed access to the reports necessary for successful reconc1hallon of the payroll mfonnat1on to the general ledger m a timely manner \n \nThe reconc1hat1on of the travel reports to the general ledger was successfully completed for fiscal year 2002 However, reconc1hat1on of the salary reports will not be successful until fiscal year 2003, when the reconc1hat10n procedures have been 1mplcmcnted m a timely manner for a full fiscal year \n \nPRIOR YEAR FEDERAL AW ARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-00-01 FA-6471-01-01 FA-6471-01-02 \n \nFurther Act10n Not Warranted Prev10usly Reported Corrective Action Implemented Unresolved - See Correcl!ve Act1on/Responses \n \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 \nPRIOR YEAR FEDERAL AW ARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES ELIGIBILITY Failure to Mamtam Documentation for Eligible Attendance Areas Fmdmg Control Number FA-6471-01-02 The School D1stnct has implemented procedures to ensure the accurate and complete reporting ofdata pertammg to ehgib1hty and part1c1patmg attendance areas determmallon, and school allocat1ons for the Elementary and Secondary Education Ac\\ - Title I - Grants to Local Educational Agencies (CFDA 84 010) Program The School D1stnct has also implemented procedures to ensure a supervisory review of the data pnor to subm1ss1on of the apphcat1on \n-3- \n \n SECTION IV FINDINGS AND QUI:-,STIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2002 \n \nSUMMARY OF AUDITOR'S RESULTS \n \nType of Report Issued on the Financrnl Statements The auditor's opinion on the Dougherty County Board of Educallon's financrnl statements was qualified for a departure from generally accepted accounting pnnc1plcs \n \n2 Reportable Conditions in Internal Control Disclosed by the Audit of the Financrnl Statements The audn report for the Dougherty County Board ofEducat10n disclosed financial statement reportable cond1t10ns related to the following control categones \n \nCash and Cash Equivalents Revcnues/Rece1vables/Rece1pts \n \nExpend1tures/Liab1l1t1es/D1sburscments Employee Compensat10n \n \nOf the reportable cond11Ions descnbed above, Cash and Cash Eqmvalcnts, Revenues/ Rece1vables/Rece1pts and Expend1tures/L1ab1h1Ies/D1sbursements are considered to be matenal weaknesses \n \n3 Noncompliance Malena( to the Financial Statements The audit of the Dougherty County Board of Educallon d1selosed no instances of noncompliance that were deemed to be matenal to the financial statements \n \n4 Reportable Cond1t1ons in Internal Control Over MaJOr Programs The audit report for the Dougherty County Board of Educallon disclosed a reportable cond1t10n in internal control over maJor programs for the following compliance rcq mrements \n \nProgram Income \n \nThe reportable cond1t1on descnbed above 1s not considered to be a matcnal wcalo1ess. \n \n5 1 ype of Report Issued on Compliance for Ma1or Programs The auditor's opinion on the Dougherty County Board of Education's report on compliance with reqmrements applicable to maJor programs was unqualified \n \n6 Audit Fmdings Rcgmred to be Reported by Section 5\\0(a) ofOMB Circular A-133 The Dougherty County Board ofEducat10n's audit disclosed an audn finding rcqmred to be reported by section 5 I0(a) ofOMB Circular A-I 33 This audit finding 1s included m scct10n IV of this report \n \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 Lunch Program \n \n-I- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF Fll\\'DINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nSUMMARY OF AUDITOR'S RESULTS \n8 Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $543,209 99 \n9 Low Risk Aud1tcc The Dougherty County Board of Educat10n qualified as a low nsk audnee as defined by Section 530 ofOMB Cucular A-133 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECE IVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separallon of Dulles Reportable Cond1t1on - Material Weakness Finding Control Number FS-6471-02-01 \nOur examinat10n ofind1v1dual school pnnc1pal accounts disclosed weaknesses in internal control as discussed below \nCash and Cash Equivalents (I) The bank reconc1hat1on function was not separated from the record keeping and voucher payment functions \nRevenues/Rece1vables/Rece1pts (I) Deposit preparallon was not separated from the record keeping and cash custody functions \n(2) Pre-numbered receipt books were not used consecutively for one of the three school pnnc1pal accounts tested \n(3) Adequate receipt documentation was not maintained to include copies ofdeposit shps and other supporting documentallon \nExpcnd1turcs/Liab1]11les/D1~bursements (I) The check wnting function was not separated from record keeping or processing ofsigned checks \n(2) Twenty voucher packages for two of the three schools tested lacked approval of expendnures pnor to checks being written \n(3) An examination of one pnnc1pal account's cancelled checks revealed the signature of someone other than the approved signor \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separat10n of Duties Reportable Cond1t10n - Malena! Weakness F111d111g Control Number FS-6471-02-01 \nThese defic1enc1es were a result of management's dec1s1on to hm1t the number ofadm1mstrat1ve staff made responsible for accounting functions appheable to the vanous pnnc1pals accounts and failure to ensure established controls were funcllonmg as designed Management should implement procedures to ensure that the key account111g functions of custody, record keepmg and authonzat10n be segregated Add1t1onally, controls should be revised and momtored to provide reasonable assurance that transact10ns are processed 111 compliance with established procedures \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayments Inadequate Personnel File Mamtenance Inadequate Leave Records Reportable Condition Amount $3,378 66 Repeated From Pnor Year Fmdmg Control Number FS-6471-02-02 \nA sample of forty employee's payroll records was selected and examined to test for accuracy of employee compensahon of the Dougherty County Board ofEducauon The follow111g defic1enc1es were noted \nSalary Overpayments/Underpayments \n The Board overpa1d two employees a total of$2,l 96 14 The overpayments were the result ofmakmg duplicate payments to an employee for work perfonned and paying an employee for two days of work not perfonned \n The Board underpa1d two employees a total of$ 1,182 52 The underpayments were the result of an error 111 payment of accrued leave and failure to pdy an employee for !Jme worked \nInadequate Personnel File Ma111tenance \n Teacher's employment contracts could not be located for three employees fh1s deficiency was a result of failure to properly ma111ta111 employees personnel files \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDTNGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2002 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayments Inadequate Personnel File Maintenance Inadequate Leave Records Reportable Cond1t10n Amount. $3,378 66 Repeated From Pnor Year Finding Control Number. FS-6471-02-02 \nInadequate Leave Records \n Sick leave was accrued at an incorrect rate for numerous employees \n Supporting documentation for sick leave could not be located for one employee \nThese defic1enc1es occurred due to the School D1stnct's failure to adequately monitor administrative procedures regarding personnel records \nThe School D1stnct should implement procedures to ensure that all payroll disbursements are based on approved contracts, salary scales and time worked Leave records should be accurate and maintained in accordance with the School D1stnct's sick, personal and vacation leave policies In add1Uon, procedures should be implemented to ensure that personnel records contain all pertinent employee information \nGENERAL LEDGER Detailed Listing of Salanes Not Reconciled Nonmatenal Noncompliance Repeated From Pnor Year Finding Control Number FS-6471-02-03 \nThe detailed listing ofsalary payments made to employees as submitted by the School D1stnct to the Georgia Department of Audits was not reconciled with the general ledger as presented for audit Umdenhfied vanances totaling $196,797 40 for salanes could not be identified by School D1stnct personnel \nThis cond1t10n occurred because management did not reconcile amounts submitted to Georgia Department of Audits to the School D1stnct's general ledger Procedures should be established by the School D1stnct to ensure that the detailed hsting ofsalary 1s reconciled to the accounting records pnor to subm1ss1on to the Georgia Department of Audit~ \n-4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2002 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nELlGIBTLITY Failure to Mamtam Documentation for Eligible Attendance Areas Reportable Cond1t1on U S Department of Education Through Georgia Department of Education Fmdmg Control Number FA-6471-02-01 \nThe 2002 Elementary and Secondary Education Act - Title I - Grants to Local Educa\\Ional Agencies (CFDA 84 010) Program, documentat10n provided by the School D1stnct to support section IV ofthe Title I apphcat1on pertammg to the determmation of eligible and part1c1patmg attendance areas and school allocauons was deficient as follows \n(I) One hundred and eighty-three pnvate and home schooled children were not mcluded as resident children on the application as submitted to Georgia Department of Educat10n \n(2) One hundred and thirteen students from two schools, which were closed down between the time that the number of resident children was calculated and the time that the applicat10n was submitted to Georgta Department of Education, were not allocated to the remammg ehg1ble schools. \n(3) A total of five hundred and sixty-two poverty children were not mcluded m the poverty children counts as reported on the apphcal!on to Georgia Department of Education \nAs provided form the grant apphcauon and required by 34 CFR 76 730, the School D1stnct assured the Georgia Department of Education that 11 will keep records and provide mformat1on as may be required for audit purposes \nThis cond1t1on was a result of the School D1stnct's failure to implement adequate mtemal controls for momtonng compliance with federal guidelines The School D1stnct should review the Federal compliance procedures m place, design procedures which would enhance momtonng compliance and implement those procedures to strengthen the internal control over federal programs Also, the Georgia Department of Education should review this matter to determine 1f a reclaim of funds 1s appropnate \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2002 \nIll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS PROGRAM INCOME Improper Use of Federal Funds Reportable Cond1t1on U S Department of Agriculture Through Georgia Department of Education Finding Control Number FA-6471-02-02 At June 30, 2002, the Iiab1ht1es exceeded assets available by $71,511 29 for a banquet fund administered by the School D1stnct. ThlS fund 1s maintained in the same bank account used by the Food Nutn!ion Programs - Food Services National School Lunch Program (CFDA 10 555) and School Breakfast Program (CFDA 10 553) 7 CFR paragraph 210 14(a) reqmres that \"revenues received by the nonprofit school food service be used only for the operation or improvement ofsuch food service \" The effect of the above-mentioned deficit balance means that school food service funds are being used to support achv1t1es outside the scope of school food service programs This cond1t10n was a result of the School D1stnct operating a separate banquet account that 1s not self-supporting The School D1stnct should establish budgetary procedures to ensure that adequate funding 1s available pnor to the School D1stnct committing to expenditures The School D1stnct should move this activity to their general operating account \n-6- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2000-h2001","title":"Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statement 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, Dougherty County, 31.53337, -84.21625"],"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: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 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":["Auditors' reports--Georgia","Financial statements--Georgia","Dougherty County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statement for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":" DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUPS \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n\"6 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n9 \n \nD \n \nSTATEMENT OF REVENUES; EXPENSES AND \n \nCHANGES IN RETAINED EARNINGS \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \nE \n \nSTATEMENT OF CASH FLOWS \n \nPROPRIETARY FUND TyPE - INTERNAL SERVICE FUND \n \n11 \n \nF NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n13 \n \nADDITIONAL FINANCIAL INFORMATION \n \nCOMBINING .STATEMENTS \n \nSPECIAL REVENUE FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n28 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n30 \n \nCAPITAL PROJECTS FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n32 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n34 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nEXHIBITS \n \nCOMBINING STATEMENTS \n \nDEBT SERVICE FUND \n \nK \n \nCOMBINING BALANCE SHEET \n \n36 \n \nL \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n3 7 \n \nM \n \nFIDUCIARY FUND TYPE \n \nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUNDS \n \n38 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n39 \n \n2 SCHEDULE OF STATE REVENUE \n \n41 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n43 \n \nEARNINGS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n44 \n \n5 \n \nBY SITE \n \n45 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION III . AUDITEE'S.RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I . FINANCIAL \n \n RussELL W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W.. Suite 214 Atlanw. Georgi:.i 30334-8400 \nDecember 18, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE. FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements of the Dougherty County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Dougherty County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \nWe conducted our audit in a~cordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in _the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall  financial statement presentation. We believe that our audit provides a reasonable basis for our op1mon .. \nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2001ARL-13 \n \n * The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponqing employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for .the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \n* The school activity accounts reported as Agency Funds in the general-purpose financial \nstatements include financial activities which should be reported as General or Special Revenue Funds. School Activity accounts whose activities primarily support the school system's educational activities should be included in the School District's General Fund, and other program activities such as school athletic fund accounts whose activities support the school's athletic programs should be included in the School District's Special Revenue Fund. To conform to generally accepted accounting principles, Agency Funds reflected in the general-purpose financial statements should only reflect funds which are purely custodial in nature. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \nIn our opinion,. except for the effect on the general-purpose financial statements of the matter referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Dougherty County Board of Education as of June 30, 2001, and t~e results of its operations and the cash flows of its proprietary fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated December 18, 2001, on our consideration of the Dougherty County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Dougherty County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through M) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing \n2001ARL-13 \n \n procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effect ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-:purpose. financial statements taken as a whole. \nA copy ofthis report has been filed as a permanent record in the office .of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 506-24. \nRespectfully submitted, \n \nRWH:gp 2001ARL-l,3 \n \nState Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 2001 \n \nASSETS \nCash and Cash Equivalents  \nInvestments \nAccounts Receivable \nPrepaid Items \nInventories Consumable Supplies Food Donated Commodities Purchased Food \nGeneral Fixed Assets Land Buildings Equipment \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of: Bond Debt Compensated Absences \nTotal Assets \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nDEBT SERVICE \nFUND \n \n$ 3,386,493.10 \n \n$ 2,170,916.70. $ \n \n1,112.57 \n \n598,031.83 $ 962,322.88 \n \n31,262,773.15 \n \n3,965,556.18 \n \n911,941.78 2,671,370.05 \n \n3,260,791.66 \n \n96,345.95 \n \n211,955.42 \n \n25,858.78 \n142,953.66 124,722.87 \n \n$ 5,204,768.08 $ 3,927,228.24 $ 36,694,481.51 $ 3,966,668.75 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -2- \n \n -~ \n \nEXHIBIT \"A\" \n \nPROPRIETARY FUND TYPE INTERNAL \nSERVICE FUND \n \nFIDUCIARY FUND TYPE AGENCY FUNDS \n \n$ \n \n60,665.29 $ \n \n377,435.64 \n \n1,356,690..40 \n \n23,339.07 \n \nACCOUNT GROUPS \n \nGENERAL \n \nGENERAL \n \nFIXED \n \nLONG-TERM \n \nASSETS \n \nDEBT \n \nTOTALS \n \n{Memorandum Only} \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ 5,996,623.30 . $ 5,665,880.77 \n \n38,145,374.44 \n \n48,616,691.11 \n \n6,867,442.56 \n \n12,010,561.71 \n \n96,345.95 \n \n100,224.24 \n \n 237,814.20 \n142,953.66 124,722.87 \n \n471,021.55 \n150,551.70 238,114.20 \n \n$ 9,141,703.44 183,894,869.65 25,598,155.19 \n$ 3,966,668.75 \n \n9,141,703.44 183,894,869.65 \n25,598,155.19 \n3,966,668.75 \n \n9,124,549.00 167,383,251.26 \n25,691,517.75 \n4,688,736.77 \n \n11,133,331.25 824,294.58 \n \n11,133,331.25 824,294.58 \n \n17,841,263.23 873,608.09 \n \n$ 1,417,355.69 $ \n \n400 774.71 $ 218,634,728.28 $ 15,924,294.58 $ 286,170,299.84 $ 292,855,971.38 \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001 \n \nLIABILITIES AND FUND EQUITY \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nDEBT SERVICE \nFUND \n \nLIABILITIES \n \nCash Overdraft Accounts Payable Salaries Payable Short-Term Debt Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Compensated Absences General Obligation Bonds Payable \n \n$ 1,363,200.36 \n \n$ 489,538.07 \n \n297,680.31 \n \n11,514.50 1,459,061.12 \n \n20,278.46 \n \n123,846.40 \n \n$ 75,111.19 \n \n392,944.10 1,035,438.43 \n \nTotal Liabilities \n \n$ 521,331.03 $ 3,318,899.38 $ 1,428,382.53 \n \nFUNDEOUITY \n \nInvestment in General Fixed Assets \n \nRetained Earnings \n \nFund Balances \n \nReserved \n \nFor Arbitrage Rebate Tax \n \nFor Bus Replacement Funds \n \n$ 38,561.00 \n \nFor Continuation of Federal Programs \n \nFor Debt Service \n \nFor Expired Grant Balances/Questioned Costs \n \n25,956.39 \n \nFor Inventories \n \nConsumable Supplies \n \n211,955.42 $ \n \nFood \n \nDonated Commodities \n \nPurchased Food \n \nFor Purpose of Bond Issue \n \nFor SPLOST Projects \n \nFor State Capital Outlay Projects \n \nUnreserved \n \nDesignated for Self-Insurance \n \nUndesignated \n \n4,406,964.24 \n \nDeficit \n \n$ 1,543,025.60 \n \n$ 3,966,668.75 \n \n25,858.78 \n142,953.66 124,722.87 \n \n15,036,225.94 19,447,785.04 \n513,107.81 \n \n314,793.55 \n \n0.00 -1,274,045.41 \n \n0.00 \n \nTotal Fund Equity \n \n$ 4,683,437.05 $ 608,328.86 $ 35,266,098.98 $ 3,966,668.75 \n \nTotal Liabilities and Fund Equity \n \n$ 5,204,768.08 $ 3,927,228.24 $ 36,694,481.51 $ 3,966,668.75 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -4- \n \n EXHIBIT \"A\" \n \nPROPRIETARY FUND TYPE INTERNAL  \nSERVICE FUND \n \nFIDUCIARY FUND TYPE AGENCY FUNDS \n \nACCOUNT GROUPS \n \nGENERAL \n \nGENERAL \n \nFIXED \n \nLONG-TERM \n \nASSETS \n \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n92,594.65 \n \n$ \n \n400,774.71 \n \n$ \n \n92,594.65 $ \n \n400 774.71 \n \n$ \n$ 824,294.58 15,100,000.00 \n \n1,363,200.36 $ 787,218.38 \n1,470,575.62 \n144,124.86 92,594.65 \n392,944.10 1,035,438.43 \n75,111.19 400,774.71 824,294.58 15,100,000.00 \n \n4,067,635.45 1,214,001.91 1,394,402.19 5,000,000.00 1,054,988.19 \n274,883.59 835,927.43 217,783.06 \n4,385.00 380,873.74 873,608.09 22,530,000.00 \n \n$ 15,924,294.58 $ 21,686,276.88 $ 37,848,488.65 \n \n$ 1,324,761.04 \n0.00 $ 1,324,761.04 \n \n$ 218,634,728.28 \n0.00 $ 218,634,728.28 \n \n$ 218,634,728.28 $ 202,199,318.01 \n \n1,324,761.04 \n \n1,583,923.40 \n \n1,543,025.60 38,561.00 \n3,966,668.75 25,956.39 \n \n832,879.55 \n10,915.93 4,688,736.77 \n37,207.46 \n \n237,814.20 \n \n471,021.55 \n \n142,953.66 124,722.87 15,036,225.94 19,447,785.04 513,107.81 \n \n150,551.70 238,114.20 25,009,937.19 15,670,212.22 1,779,344.07 \n \n4,721,757.79 -1,274,045.41 \n \n1,857,868.49 2,332,241.00 -1,854, 788.81 \n \n$ 264,484,022.96 $ 255,007,482.73 \n \n$ 1,417,355.69 $ \n \n400774.71 $218,634,728.28 $15,924,294.58 $286,170,299.84 $292,855,971.38 \n \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent. Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers In Operating Transfers Out. \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nResidual Equity Transfer \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 68,589,629.23 $ 4,114,826.10 \n \n218,852.19 \n \n13,958,332.43 \n \n32,001,147.49 \n \n1,727,659.85 \n \n2,086,689.57 \n \n$ 102,537,288.76 $ 20,159,848.10 \n \n$ 68,718,741.72 $ \n2,754,875.15 2;743,935.54 3,067,028.99 1,416,029.32 7,524,222.81 2,367,672.95 8,812,653.39 4,313,688.19 1,105,350.86 \n60,948.13 33,323.23 278,173.57 150,617.59 25,695.90 \n \n7,869,621.15 \n1,792,429.02 1,347,841.15 \n124,133.41 347,075.33 65,642.13 \n132,079.58 118,893.23 \n18,815.10 7,970,050.03 \n88,114.70 504,730.75 \n99,2.81.12 \n \n$ 103,372,957.34 $ 20,478,706.70 $ -835,668.58 $ -318,858.60 \n \n$ \n \n98,408.25 $ \n \n-137,961.47 \n \n$ \n \n-39.553.22 $ \n \n157,328.06 157,328.06 \n \n$ -875,221.80 $ 4,328,060.93 1.230,597.92 \n \n-161,530.54 769,859.40 \n \nFUND BALANCE JUNE 30 \n \n$ 4,683,437.05 $ ==6==0=8e!.i,3=2==8.=86,..,. \n \nThe notes to the general-purpose financial statements are an integral part of this statement. \n \n- 6- \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Only) YEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 301 2000 \n \n$ 1,152,918.21 429,400.12 \n7,683,242.78 $ 2,387, 179.29 \n$ 11,652,740.40 $ \n \n$ \n8,374,990.08 69,513.28 \n \n73,857,373.54 $ 14,606,584.74 48,059,380.35 6,271,041.99 \n \n69,475,891.72 19,072,747.24 47,368,514.46 6,478,281.59 \n \n8,444,503.36 $ 142,794,380.62 $ 142,395,435.01 \n \n$ \n \n1,291.56 \n \n1,392.52 26,156.89 \n1,299.45 109,002.90 385,118.27 \n \n16,900,912.66 $ \n$ 17,425,174.25 $ $ -5,772,433.85 $ \n \n$ 76,589,654.43 $ 72,895,092.15 \n \n4,547,304.17 4,091,776.69 3,192,554.92 1,789,261.54 7,591,164.39 2,476,675.85 9,329,851.24 4,432,581.42 1,105,350.86 \n79,763.23 8,003,373.26 \n366,288.27 655,348.34 17,025,889.68 \n \n7,225,273.23 4,232,568.92 3,487,159.47 1,816,894.15 7,501,329.76 1,773,878.14 9,441,335.78 4,297,817.68 1,676,774.79 \n304,905.55 7,882,220.95 \n578,188.14 730,712.17 16,562,662.65 \n \n7,430,000.00 913,792.50 2,745.96 \n \n7,430,000.00 913,792.50 2,745.96 \n \n7,050,000.00 1,218,210.00 \n3 710.99 \n \n8,346,538.46 $ 149,623,376.75 $ 148,678,734.52 \n \n97,964.90 $ -6,828,996.13 $ -6,283,299.51 \n \n$ \n \n11,513.61 \n \n$ \n \n11 513.61 \n \n$ \n \n267,249.92 $ 1,462,366.42 \n \n-137 961.47 \n \n-1,462,366.42 \n \n$ \n \n129,288.45 $ \n \n0.00 \n \n$ -5,760,920.24 $ \n \n97,964.90 $ -6,699,707.68 $ -6,283,299.51 \n \n41,027,019.22 \n \n5,099,301.77 \n \n51,224,241.32 \n \n57,507,540.83 \n \n-1,230,597.92 \n \n0.00 \n \n$ 35,266,098.98 $ 3,966,668.75 $ 44,524,533.64 $ 51,224,241.32 \n \n-7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - (NON-GAAP BASIS\\ GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30 2001 \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \n \n$ 66,712,067.00 $ 1,337,517.00 \n30,800,081.00 926,326.00 \n \n68,589,629.23 218,852.19 \n32,001,147.49 1,727,659.85 \n \nTotal Revenues \n \n$ 99,775,991.00 $ 102,537,288.76 \n \nEXPENDITURES \n \nCurrent Instruction  Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nCapital Outlay \n \n$ 62,973,388.38 $ 68,718,741.72 \n \n5,467,466.26 2,659,193.61 3,049.671.36 1.446,592.01  7,337,930.69 1,789,094.93 8,868.411.04 3,636,358.64 1.688,855.07 \n267,953.01 65,068.00 232.258.00 172.000.00 \n1,250.00 \n \n2,754,875.15 2,743.935.54 3,067.028.99 1,416,029.32 7,524,222.81 2.367,672.95 8,812,653.39 4,313,688.19 1.105,350.86 \n60,948.13 33,323.23 278,173.57 150,617.59 25,695.90 \n \nTotal Expenditures \n \n$ 99,655,491.00 $ 103,372,957.34 \n \nExcess of Revenues over (under) Expenditures $ 120,500.00 $ -835,668.58 \n \nOTHER FINANCING SQ!,!RCES (!.!SES! \nOther Sources Other Uses \n \n$ 200,000.00 $ -320,500.00 \n \n98,408.25 -137 961.47 \n \nTotal Other Financing Sources (Uses) $ -120,500.00 $ \n \n-39,553.22 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures and Other Financing \n \nUses \n \n$ \n \n0.00 $ \n \nFUND BALANCE JULY 1. 2000 \n \n2.105, 136.54 \n \nResidual Equity Transfer \n \n-875.221.80 4.328,0~0.93 1,230,597.92 \n \nFUND BALANCE,!!.!~!; JQ, iQQl \n \n$ 211051136.54 $ 4,683,437.05 \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ 4,401,013.70 $ 4,114,826.10 16,309,315.71 13,958,332.43 \n \n2,874,792.09 \n \n2,086,689.57 \n \n$ 23,585, 121.50 $ 20,159,848.10 \n \n$ 7,965,822.45 $ 7,869,621.15 \n \n1,779,825.00 1,536,057.51 \n163,251.00 551,939.00 \n48,405.00 \n \n1,792,429.02 1,347,841.15 \n124,133.41 347.075.33 65,642.13 \n \n251,411.54 1.500.00 \n \n132,079.58 118,893.23 \n \n31,990.00 10,713,324.00 \n50.750.00 562,346.00 \n49,000.00 \n \n18,815.10 7,970.050.03 \n88,114.70 504,730.75 99,281.12 \n \n$ 23,705,621.50 $ 20,478,706.70 \n \n$ -120,500.00 $ -318,858.60 \n \n$ 120.500.00 $ 157.328.06 $ 120,500.00 $ 157,328.06 \n \n$ \n \n0.00 $ -161.530.54 \n \n686,723.50 \n \n769,859.40 \n \n$ 686,723.50 $ 608,328.86 \n \n.The notes to the general-purpose financial statements are an integral part of this statement. -9- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \nYEAR ENDED JUNE 30, 2001 \n \nOPERATING REVENUES Charges for Services  \nOPERATING EXPENSES Current Support Services Central Support Services Operating Income (Loss) \nNONOPERATING REVENUES Interest Earned Net Income (Loss) Before Operating Transfers \nOPERATING TRANSFERS OUT Transfers To Other Funds Total Income (Loss) \nRETAINED EARNINGS JULY 1 \nRETAINED EARNINGS JUNE 30 \n \nPROPRIETARY FUND TYPE SELFINSURANCE FUND \n \nTOTALS (Memorandum Onl~) \nYEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \n$ 102,149.19 $ 102,149.19 $ 304,375.42 \n \n$ 374,461.36 $ 374,461.36 $ 362,471.06 $ -272,312.17 $ -272,312.17 $ -58,095.64 \n \n$ 142,629.45 $ 142,629.45 $ 105,320.29 $ -129,682.72 $ -129,682.72 $ 47,224.65 \n \n-129,479.64 \n \n-129,479.64 \n \n$ -259, 162.36 $ -259;162.36 $ 47,224.65 \n \n1,583,923.40 1,583,923.40 1,536,698.75 \n \n$ 1,324.761.04 $ 1,324,761.04 $ 1,583,923.40 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. - 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND YEAR ENDED JUNE 30. 2001 \n \nEXHIBIT\"E\" \n \nCash Flows from Operating Activities: Cash Received from Charges for Services Cash Paid for Administration of Fund Cash Paid for Worker's Compensation Claims \nNet Cash Provided (Used) by Operating Activities \nCash Flows from Noncapital Financing Activities: Operating Transfers to. Other Funds \nCash Flows from Investing Activities: Interest Received on Investments Purchases/Redemptions of Investments \nNet Cash Provided by Investment Activities \nNet Increase (Decrease) in Cash \nCash and Cash Equivalents - July 1 \n \nPROPRIETARY FUND TYPE SELFINSURANCE FUND \n \nTOTALS {Memorandum Onl~l \nYEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \n$ 102,149.19 $ 102,149.19 $ 304,375.42 \n \n-100,148.26 \n \n-100, 148.26 \n \n-72,572.08 \n \n-456,602.04 \n \n-456,602.04 \n \n-299,450.76 \n \n$ -454,601.11 $ -454,601.11 $ -67 647.42 \n \n$ -129,479.64 $ -129,479.64 \n \n$ 142,629.45 $ 142,629.45 $ 105,320.29 \n \n494,336.80 \n \n494,336.80 \n \n-104,789.48 \n \n$ 636,966.25 $ 636,966.25 $ \n \n530.81 \n \n$ \n \n52,885.50 $ \n \n52,885.50 $ -67 116.61 \n \n$ \n \n7 779.79 $ \n \n7 779.79 $ 74,896.40 \n \nCash and Cash Equivalents : June 30 \n \n$ \n \n60,665.29 $ \n \n60,665.29 $ ===7i,;,7,;.;79;,;,,;,,;79= \n \nReconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Decrease in Claims Payable \n \n$ -272,312.17 $ -272,312.17 $ \n \n-182,288.94 \n \n-182,288.94 \n \n-58,095.64 -9,551.78 \n \nNet Cash Provided (Used) by Operating Activities \n \n$ -454,601.11 $ -454,601.11 $ ===-6=7=,6=47=.4=2= \n \nThe notes to the general-purpose financial statements are an integral part of this statement. - 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Dougherty County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school hoard elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe School District uses funds and account groups to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing ,set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \nThe school activity accounts reported in the general-purpose financial statements do not accurately reflect the revenues, expenditures and changes in fund balances in the appropriate fund but rather includes all activity in Agency Funds. To conform to generally accepted accounting principles, all accounts should be recorded in the proper fund within the general-purpose financial statements. \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account groups presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \n' Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \nPROPRIETARY FUND TYPE - the funds used to account for activities of the School District similar to those found in the private sector, where cost recovery and the determination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type ofproprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the School District. \nSELF-INSURANCE FUND - the 1.ntemal service fund used to account for the School District's Worker's Compensation financing and insurance related activities. \nFIDUCIARY FUND TYPE -the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: \nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUPS \nGENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the School District. \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and accrued compensated absences. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues  and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \nAll proprietary funds are accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales tax'es, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers'. and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a  substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30; 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \n The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nBUDGET \n \nThe Dougherty County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations of the internal service funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \n \nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the i:iext regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or _decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS \n \nCash and cash equivalents consist ofcash on hand, demand deposits and short-term.investments with \n \noriginal maturities of three months or less from the date of acquisition in authorized financial \n \ninstitutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one \n \nor more solvent banks or in\u0026ured Federal savings and loan associations. \n \n \n \nINVESTMENTS \n \nCOMPOSITION OF. INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest ratepfreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n. EXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(2) Obligations issued by the United States government, \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dougherty County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 11, 2000 (levy date). Taxes were due on December 20, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1 % of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $31,890,939.45 and for school bonds amounted to $952.94. \n \nThe tax millage rate levied for the 2000 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.7 mills \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSALES TAXES \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $16,056,559.02 and was recorded in the Capital Projects and Debt Service Funds. The State will \nterminate collection of this tax once an additional $32,638,343.04 has been collected or on \nSeptember 30, 2002, whichever occurs first. \nINVENTORIES \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned v~lue. Purchased foods inventories are reported on th.e Combined Balance Sheet at cost (weighted average). The School District uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, an!l expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. 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. \nSUPPLIES INVENTORY Inventories of consumable supplies are reported on the Combined Balance Sheet at cost (weighted average). The School District uses the consumption method to account for the inventory whereby. purchases are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventory reported on the balance sheet is equally offset by a reservation offund balance which indicates that it is not available for discretionary expenditures even though it is a component of net current assets. \nPREPAID ITEMS \nPayments made to vendors for services that will bene.fit periods subsequent to June 30, 2001, are recorded as prepaid items. \nGENERAL FIXED ASSETS \nGeneral fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. 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. \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" . \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \nINTERFUND TRANSACTIONS \nThe School District has the following types of interfund transactions: \nReimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the ~d that is reimbursed. \nResidual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity. \nOperating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements. \nMEMORANDUM ONLY -TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in 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. \nDEFICIT FUND BALANCE \nThe fund reporting a deficit fund balance position at June 30, 2001, is as follows: \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Fund Type Capital Projects Fund Federal Projects \n \n$ 1,274,045.51 \n \nThe School District approved a plan to transfer $203,000.00 from the General Fund each year for the next five years to the Capital Projects - Federal Projects Fund starting in fiscal year 2002. The School District is reviewing capital project expenditures with the Federal Emergency Management Agency to determine whether additional funding is available. \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time;Jonger than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance: If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking . accounts. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n-20- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $8,864,549.06. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School Di'strict's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. {This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 617,750.38 \n \n2 \n \n8,246,798.68 \n \n3 \n \n0.00 \n \nTotal \n \n$ 8,864,549.06 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value ofthe School District's total investments was $38,145,374.44 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 Governme~t 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: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nregistered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value 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. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued _or guaranteed as to principal and interest. by the U. S. Government or any of its agencies or instrumentalities, b_anker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: GENERAL FIXED ASSETS \n \nThe following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: \n \nLand \n \nBuildings \n \nEquipment \n \nTotal \n \nBalance July 1, 2000 $9,124,549.00 $167,383,251.26 $25,691,517.75 $202,199,318.01 \n \nAdditions \n \n99,578.29 17,049,102.29 1,994,021.59 19,142,702.17 \n \nDeletions \n \n-82,423.85 \n \n-537,483.90 -2,087 ,384.15 -2,707,291.90 \n \nBalance June 30, 2001 $2,141,103.44 $183,824,862.65 $25,528,155.12 $218,634,128.28 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD.OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 5: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line o.f coverage. \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, arid the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2000 2001 \n \n$ 284,435.37 $ 289,898.98 $ 299,450.76 $ 274,883.59 $ 274,883.59 $ 274,313.10 $ 456,602.04 $ 92,594.65 \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 5: RISK MANAGEMENT \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2000 2001 \n \n$ \n \n15,323.00 $ 18,131.00 $ 27,764.00 $ \n \n5 690.00 \n \n$ \n \n5,690.00 $ 35,098.00 $ 26,339.00 $ 14 449.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ 50,000.00 $ 250,000.00 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1998 \n \n3.55% - 4.10% $15.100.000.00 \n \nThe changes in \u003c;ieneral Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \n \nCompensated Absences \n \nGeneral Obligation \nBonds \n \nTotal \n \nBalance July 1, 2000 \n \n$ 873,608.09 _$22,530,000.00 $23,403,608.09 \n \nDeductions  Annual Leave Earned and Utilized (Net) Debt Retired \n \n49,313.51 \n \n49,313.51 \n \n7,430,000.00 7,430,000.00 \n \nBalance June 30, 2001 \n \n$ 824,294.58 $15.100.000.00 $15.924.294.58 \n \nAt June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 24- \n \n /   I 1' \n \nDOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2002  2003 \n \n$ 7,942,712.50 7,988,381.25 \n \nTotal Principal and Interest \n \n$15.931.093.75 \n \nNote 7: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District each December. Article IX, Section V, Paragraph V of the Constitution of the State of Georgi~ limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred. \n \nBeginning Balance \n \nAdditions \n \nPayments \n \nEnding Balance \n \nTax Anticipation Notes $5,000,000.00 $16,000,000.00 $21,000,000.00 $=====\"\"0,,,,.0,,,.0 \n \nNote 8: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of$1,774,586.08 for \n \nhealth insurance and retirement contributions paid on the School District's behalfby the following \n \nState Agencies. \n \n \n \n \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $1,473,742.08 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $300,844.00 \n \nNote 9: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001: \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 9: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \n97/96S-647-015 99-647-079 Bond Projects SPLOST Projects \n \n$ 220,365.15 195.64 \n7,673,745.45 2,251,589.32 \n \n$10.145.895.56 \n \nThe amounts described in this note are not reflected in the general-purpose financial statements. \n \nNote 10: CONTINGENT LIABILITIES \n \nARBITRAGE REBATE TAX The Feder;,11 Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated liability of $1,543,025.60 at June 30, 2001, is based on tax exempt debt subject to the Tax Reform Act. The estimated liability will be updated annually for any tax-exempt issuances or changes in yields through February 24, 2003, at which time payment of the final calculated liability for the five-year period is required to be remitted. \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursements to the grantor agency for any expenditures which are disallowed under grant terms. An audit by the Federal Emergency Management Agency (FEMA) conducted on the School District's Disaster Assistance claims resulted in questioned costs totalling $11,023,309.00. The School District is in the process of responding to the questioned costs and does not believe that the final questioned costs can be reasonably estimated at this time. Other than the questioned costs pertaining to Disaster Assistance claims identified by FEMA, the School District believes that disallowances pertaining to other grantors, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is .not believed to be material to the general-purpose financial statements. \n \n-26- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 11: ACCUMULATED EMPLOYEES' LEAVE \n \nThe Board's administrative staff and certain other full-time employees earn up to one and one-half days per month of vacation leave. Vacation leave may be accumulated to a maximum of 30 days.. Employees are paid, at their current rate of pay, for unused accumulated vacation leave up to the maximum upon retirement or termination of employment. See Note 1 - Compensated Absences \n \nNote 12: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgi~ (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS. REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State _statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2001 2000 1999 \n \n100% 100% 100% \n \n$ 7,915,384.94 $ 7,855,641.03 $ 7,702,068.42 \n \n- 27\"\" \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 \n \nASSETS \nCash. and Cash Equivalents \nl_nvestments \nAccounts Receivable \nInventories Consumable Supplies Food Donated Commodities Purchased Food \nTotal Assets \nLIABILITIES AND FUND EQUITY \n LIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories Consumable Supplies Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \nTotal Liabilities and Fund Equity \nSee notes to the general-purpose financial statements. - 28- \n \nSCHOOL FOOD \nSERVIC_ES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n36,802.28 \n \n$ \n \n962,322.88 \n \n219,006.90 \n \n104,944.39 \n \n25,858.78 \n142,953.66 124?22.87 \n \n$ 1,474,865.09 $ ====1=4=1=74=6=.6=7= \n \n$ \n \n280,147.13 \n \n50,623.62 $ \n \n30,335.91 \n \n557,371.25 \n \n111,410.76 \n \n$ \n \n888,142.00 $ \n \n141 746.67 \n \n$ \n \n25,858.78 \n \n142,953.66 124,722.87 \n \n293,187.78 $ \n \n0.00 \n \n$ \n \n586?23.09 $ \n \n0.00 \n \n$ 1,474,865.09 $ ===14=1,7=46=.6=7 \n \n EXHIBIT \"G\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n36,802.28 $  972,595.59 \n \n962,322.88 \n \n$ 2,332,018.76 $ \n \n15,400.00 \n \n2,671,370.05 \n \n2,121,173.05 \n \n25,858.78 \n142,953.66 124,722.87 \n \n27,909.51 \n150,551.70 238,114.20 \n \n$ 2,332,018.76 $ \n \n15,400.00 $ 3,964,030.52 $ 3,510,344.05 \n \n$ 1,104,455.51 $ 216,720.78 790,279.11 123,846.40 75111.19 \n$ 2,310,412.99 $ \n \n15,400.00 $ 15,400.00 $ \n \n1,400,002.64 $ 297,680.31 \n1,459,061.12 123,846.40 75111.19 \n3,355,701.66 $ \n \n8,750.00 341,854.86 1,338,589.63 1,051,290.16 \n2,740,484.65 \n \n$ \n \n21,605.77 $ \n \n$ \n \n21,605.77 $ \n \n$ \n0.00 0.00 $ \n \n$ 25,858.78 142,953.66 124,722.87 314,793.55 608,328.86 $ \n \n10,915.93 27,909.51 150,551.70 238,114.20 342,368.06 769,859.40 \n \n$ 2,332,018.76 $ \n \n15,400.00 $ 3,964,030.52 $ 3,510,344.05 \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES,. EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Entetprise Operations Community Services Operations \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n490,264.00 $ 1,484,450.17 \n \n5,800,344.18 \n \n1,577,811.34 \n \n$ 7,868,419.52 $ 1,484,450.17 \n \n$ . 1,264,807.02 \n192,083.26 8,460.07 \n \n20,436.84 528.31 \n \n$ 7,950,018.18 88,114.70 3,703.68 6,728.81 \n \n92,552.31 \n \n$ 8,048,565.37 $ 1,578,867.81 \n \n$ \n \n-180,145.85 $ \n \n-94,417.64 \n \n24,645.71 \n \n$ \n \n-155,500.14 $ \n \n742,223.23 \n \n94 417.64 \n0.00 0.00 \n \n$ \n \n586,723.09 $=====0.=00=== \n \nSee notes to the.general-purpose financial statements. - 30 - \n \n EXHIBIT \"H\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 3012001 \n \nJUNE 30, 2000 \n \n$ 2,112,111.93 $ 8,157,988.25 5081878.23 \n$ 1Oz7781978.41 $ \n \n28,000.00 $ \n \n4,114,826.10 $ 13,958,332.43 210861689.57 \n \n281000.00 $ 201159,848.10 $ \n \n3,614,950.30 13,654,533.55 \n1,9831993.79 \n19,253,477.64 \n \n$ 6,576,814.13 $ \n1,600,345.76 1,339,381.08 \n124,133.41 347,075.33 \n65,642.13 111,642.74 118,364.92 \n18,815.10 20,031.85 \n501,027.07 \n \n$ 10,8231273.52 $ \n \n$ \n \n-44,295.11 $ \n \n28,000.00 $ 7,869,621.15 $ . 7,530,981.44 \n \n1,792,429.02 1,347,841.15 \n124,133.41 347,075.33 \n65,642.13 132,079.58 118,893.23 \n18,815.10 7,970,050.03 \n88,114.70 504,730.75 \n991281.12 \n \n1,798,547.41 1,323,948.58 \n64,126.34 305,637.10 \n85,038.47 146,769.85 81,674.89 39,234.12 7,881,289.35 252,124.56 613,136.66 \n12,328.79 \n \n28,000.00 $ 20.478,706.70 $ 20,134,837.56 \n \n0.00 $ -318,858.60 $ \n \n-881,359.92 \n \n38,264.71 \n \n$ \n \n-6,030.40 $ \n \n27,636.17 \n \n157,328.06 \n \n209,815.03 \n \n0.00 $ 0.00 \n \n-161,530.54 $ 769,859.40 \n \n-671,544.89 1.441.404 .29 \n \n$ \n \n21,605.77 $ \n \n0.00 $ \n \n6081328.86 $ ===76=9=,8=59==40..,. \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \n$ 1,364,510.20 $ \n \n665,834.93 \n \n15,874,414.40 \n \n1441072.80 \n \nTotal Assets \n \n$ 1712381924.60 $==8=0=9=19=07==73== \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Arbitrage Rebate Tax For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Deficit \nTotal Fund Equity. \nTotal Liabilities and Fund Equity \n \n$ \n \n23,179.52 $ \n \n636A93.54 \n \n$ \n \n6591673.06 $ \n \n8,126.15 2881673.77 \n296,799.92 \n \n$ 1,543,025.60 15,036,225.94 \n$ \n0.00 \n \n513,107.81 0.00 \n \n$ 16,579,251.54 $ \n \n513,107.81 \n \n$ 17,238,924.60 $==8=0=9=,9=07==73== \n \nSee notes to the general-purpose financial statements. - 32- \n \n EXHIBIT\"!\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nFEDERAL PROJECTS \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ . 2,038,686.53 \n \n$ 4,069,031.66 $ 1,429,382.41 \n \n15,388,358.75 \n \n31,262,773.15 \n \n38,397,194.37 \n \n2,492,649.31 $ \n \n624,069.55 \n \n3,260,791.66 \n \n9,023,135.22 \n \n$ 19,919,694.59 $ \n \n624,069.55 $ 38,592,596.47 $ 48,849,712.00 \n \n$ 1,898,114.96 $ 1,898,114.96 $ 5,907,582.86 \n \n861,399.43 \n \n$ \n \n361,638.43 \n \n392,944.10 \n \n835,927.43 \n \n110,271.12 \n \n1,035,438.43 \n \n217,783.06 \n \n$ \n \n471,909.55 $ 1,898,114.96 $ 3,326,497.49 $ 7,822,692.78 \n \n$ 19,447,785.04 \n \n$ 1,543,025.60 $ \n \n832,879.55 \n \n15,036,225.94 \n \n25,009,937.19 \n \n19,447,785.04 \n \n15,259,647.22 \n \n 513,107.81 \n \n1,779,344.07 \n \n0.00 $ \n \n0.00 \n \n-1,274,045.41 \n \n0.00 -1,274,045.41 \n \n0.00 -1,854,788.81 \n \n$ 19,447,785.04 $ -1,274,045.41 $ 35,266,098.98 $ 41,027,019.22 \n \n$ 19,919,694.59 $ \n \n624,069.55 $ 38,592,596.47 $ 48,849,712.00 \n \n- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Educational Media Services General Administration School Administration Business Administration . Maintenance and Operation of Plant Community Services \nCapital Outlay Land and Land Improvements Building and Building Improvements Equipment \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nAdjustments Prior Year Expenditures \nFUND BALANCE JUNE 30 \nSee notes to the general-purpose financial statements. \n-34- \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \n$ \n \n1,104,970.20 \n \n$ 1,412, 111 .43 $ 1,412,111 .43 $ \n \n1,104,970.20 \n \n$ 8,794,065.56 $ \n$ 8,794,065.56 $ $ -7,381,954.13 $ \n \n5,607,825.62 14,839.33 \n5,622,664.95 \n-4,517,694.75 \n \n$ \n \n459,759.68 $ \n \n-2,341,370. 75 \n \n$ -1,881,611.07 $ \n \n4,417,764.22 -1, 166,305.73 . \n3,251,458.49 \n \n$ -9,263,565.20 $ 25,842,816.74 \n \n-1,266,236.26 1,779,344.07 \n \n$ 16,579,251.54 $===5=1=3=,1=07==81= \n \n EXHIBIT \"J\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nFEDERAL PROJECTS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n$ 7,683,242.78 974,267.86 \n$ 8,657,510.64 $ \n \n47,948.01 $ 429,400.12 \n800.00 \n \n1,152,918.21 $ 429,400.12 \n7,683,242.78 2,387,179.29 \n \n2,343,193.14 5,212,534.20 8,618,849.75 2,296,257.11 \n \n478,148.13 $ 11,652,740.40 $ 18,470,834.20 \n \n$ \n \n$ \n \n384,899.84 \n \n2,405,739.23 \n$ 2,790,639.07 $ $ 5,866,871.57 $ \n \n1,291.56 $ \n \n1,291.56 $ \n \n855,761.99 \n \n1,392.52 26,156.89 \n1,299.45 109,002.90 \n218.43 \n \n1,392.52 26,156.89 \n1,299.45 109,002.90 385,118.27 \n \n595,392.21 18,209.26 \n143,448.47 76,922.25 263,885.56 \n2,712.68 \n \n78,442.92 \n \n16,886,073.33 14,839.33 \n \n496,927.50 15,709,384.67 \n30,201.09 \n \n217,804.67 $ 17,425,174.25 $ 18,192,845.68 \n \n260,343.46 $ -5,772,433.85 $ \n \n277,988.52 \n \n$ \n \n942,830.50 $ \n \n-2,621,564.25 \n \n$ -1,678,733.75 $ \n \n447,571.06 $ 6,267,925.46 $ 6,585,224.71 \n \n-127,171.12 \n \n-6,256,411.85 \n \n-7,837,776.10 \n \n320,399.94 $ \n \n11,513.61 $ -1,252,551.39 \n \n$ 4,188,137.82 $ \n \n580,743.40 $ -5,760,920.24 $ -974,562.87 \n \n15,259,647.22 \n \n-1,854,788.81 \n \n. 41,027,019.22 \n \n42,259,627.24 \n \n-258,045.15 \n \n$ 19,447,785.04 $ -1,274,045.41 $ 35,266,098.98 $ 41,027,019.22 \n \n- 35- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 \n \nEXHIBIT\"K\" \n \n ASSETS Cash and Cash Equivalents Investments Accounts Receivable \nTotal Assets \nFUND EQUITY Fund Balances \nReserved For Debt Service \nUnreserved Undesignated \nTotal Fund Equity \n \nPROPERTY TAXES \nFOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS JUNE 30, 2001 JUNE 30, 2000 \n \n$ \n \n0.00 $ \n \n1,112.57 $ \n \n1,112.57 $ 439,772.73 \n \n3,965,556.18 3,965,556.18 4,659,471.53 \n \n57.51 \n \n$===o=.o=o= $ 3,966,668.75 $ 3,966.668.75 $ 5,099,301.77 \n \n$ 3,966,668.75 $ 3,966,668.75 $ 5,099,301.77 \n \n$ _ _ _0;;;.;.o\"\"_'o_ \n \n0.00 \n \n0.00 \n \n0.00 \n \n$===0....0=0= $ 3,966,668.75 $ 3,966,668.75 $ 5,099,301.77 \n \nSee notes to the general-purpose financial s\\atements.  - 36 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"L\" \n \nCOMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \n \nDEBT SERVICE FUND \n \nYEAR ENDED JUNE 30. 2001 \n \nREVENUES \nTaxes Other Funds \nTotal Revenues \nEXPENDITURES \nDebt Service Principal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nFUND BALANCE JULY 1 \nResidual Equity Transfer \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED JUNE 30 1 2001 JUNE 30, 2000 \n \n$ \n \n1,673.84 $ 8,373,316.24 $ 8,374,990.08 $ 8,312,501.51 \n \n69,416.06 \n \n97.22 \n \n69,513.28 \n \n41 784.40 \n \n$ 71,089.90 $ 8,373,413.46 $ 8,444,503.36 $ 8,354,285.91 \n \n$ \n \n0.00 $ 7,430,000.00 $ 7,430,000.00 $ 7,050,000.00 \n \n913,792.50 \n \n913,792.50 \n \n1,218,210.00 \n \n2,745.96 \n \n2,745.96 \n \n3 710.99 \n \n$ \n \n0.00 $ 8,346,538.46 $ 8,346,538.46 $ 8,271,920.99 \n \n$ 71,089.90 $ \n \n26,875.00 $ 97,964.90 $ 82,364.92 \n \n1,159,508.02 \n \n3,939,793.75 \n \n5,099,301.77 \n \n5,016,936.85 \n \n-1,230,597.92 \n \n-1,230,597 .92 \n \nFUND BALANCE JUNE 30 \n \n$====0..0..0.== $ 3,966,668.75 $ 3,966,668.75 $ 5,099,301.77 \n \nSee notes to the general-purpose financial statements. \n \n- 37 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE -AGENCY FUNDS YEAR ENDED JUNE 30, 2001 \n \nEXHIBIT\"M\" \n \nMILLS MEMORIAL STADIUM FUND \nASSETS Cash and Cash Equivalents Accounts Receivable \n \nBALANCE JULY 1, 2000 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2001 \n \n$ -36,692.81 $ 36,692.81 \n \n56,729.02 $ 23,339.07 \n \n42,998.88 $ 36,692.81 \n \n-22,962.67 23,339.07 \n \n$ \n \n0.00 $ \n \n80,068.09 $ \n \n79,691.69 $ =====3=76===40= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n0.00 $ 80,068.09 $ \n \n79,691.69 . $ =====3=76===40= \n \nSCHOOL ACTIVITY FUNDS \nASSETS Cash and Cash Equivalents \n \n$ 380,873.74 $ 1,671,766.64 $ 1,652,242.07 $==4=0=0=,3=98=.3=1= \n \nLIABILITIES Funds Held for Others \n \n$ 380,873.74 $ 1,671,766.64 $ 1,652,242.07 $ ==4=0=0=,3=98=.3=1= \n \nTOTALS -AGENCY FUNDS \nASSETS Cash and Cash Equivalents .A:ccounts Receivable \n \n$ 344,180.93 $ 1,728,495.66 $ 1,695,240.95 $ \n \n36,692.81 \n \n23,339.07 \n \n36,692.81 \n \n377,435.64 23,339.07 \n \n$ 380,873.74 $ 1,751,834.73 $ 1,731,933.76  $==4==0=0=,7=7.4...=71= \n \nLIABILITIES Funds Held for Others \n \n$ 380,873.74 $ 1,751,834.73 $ 1,731,933.76 $==4=0=0=7=74==71= \n \nSee notes to the general-purpose financial statements. - 38 - \n \n DOUGHERTY COUNTY BOARD OF ED!,JCATION SCHEQULE QF !;XPENDITURE~ QF FEDERAL AWARQS \nYEAR END!;D JUN!; 30. 2001 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program' National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Food Distribution Program (1) Pass-Through From U.S. Department of Defense Food and Nutrition Program Food Services Food Distribution Program \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education \nIndividuals with Disabilities Education Act \nPart B  Special Education Flow Through Georgia Leaming Resources System Preschool Severely Emotionally Disturbed \nPart C - Special Education Special Education Capacity Building Improvement \nTotal Special Education Cluster \nOther Programs Direct Impact Aid Pass-Through From Chattahoochee-Flint Regional Educational Service Agency d/b/a Two Rivers Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project \nElementary and Secondary Educati~n Act \nTitle I Grants to Local Educational Agencies \nTitle II Eisenhower Professional Development \nTitle VI Innovative Education Program Strategies Class Size Reduction \nIndividuals with Disabilities Education Act \nSpecial Education Part B State Program Improvement Grants for Children with Disabilities \nGoals2000 State and Local Education Systemic Improvement Grants \nSafe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act \nEducation for Homeless Children and Youth \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n. 10.553 \n. 10.555 \n \nNIA $ 1,743,773.84 \n \n(2) \n \nNIA \n \n3,737,034.05 $ 7,729,029.08 (3) \n \n$ 5,480,807.89 $ 7,729,029.08 \n \n10.550 10.550 \n \nN/A \n \n319,536.29 \n \n319,536.29 \n \nNIA \n \n111 \n \n11 l \n \n$ 5,800,344.18 $ 8,048,565.37 \n \n84.027 84.027 84.173 84.027 84:173 \n84.041 \n \nNIA $ 1,240,316.46 $ 1,240,316.46 \n \nNIA \n \n141,790.74 \n \n145,951.36 (3) \n \nNIA \n \n104,404.56 \n \n104,404.56 \n \nNIA \n \n44,823.58 \n \n44,823.58 \n \nNIA \n \n47,014.05 \n \n47 014.05 \n \n$ 1,578,349.39 $ \n \n1,582,510.01 \n \n101,430.59 \n \n(4) \n \n84.011 \n \nNIA \n \n84.332 \n \nNIA \n \n. 84.010 \n \nNIA \n \n84.281 \n \nNIA \n \n84.298 \n \nNIA \n \n84.340 \n \nNIA \n \n18,623.19 4,266.25 \n4,805,084.38 146,231.46 178,224.30 710,294.30 \n \n18,634.29 (3) 4,300.00 (3) \n4,807,334.13 (3) 152,387.26 (~) 178,224.30 710,638.16 (3) \n \n84.323 \n \nNIA \n \n84.276 \n \nNIA \n \n84.186 \n \nNIA \n \n84.196 \n \nNIA \n \n13,768.55 \n16,255.36 257,935.00 \n25,067.07 \n \n22,048.75 (3) \n16,284.70 (3) 272,006.98 (3) \n25,067.07 \n \n-39- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nEducation, U. S. Department of Other Programs Pass-Through From Georgia Department of Education Vocational Education - Basic Grants to States High School Program Basic Grant \nTotal U. S. Department of Education \nFederal Emergency Management Agency Pass-Through From Office of the Govemor Disaster Assistance \nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Child care School Age Program Extended Day Program \nTotal U.S. Department of Health and Human Services \nLabor, U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Workforce Investment Act. Service Leaming Youth (YETP) Job Training Partnership Act. \nTotal U. S. Department of Labor \nDefense, U. S. Department of . Direct Department of the Air Force R.0.T.C. Program Department of the Marine Corps R.O.T.C. Program Troopsto Teachers \nTotal U. S. Department of Defe!lse \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n84.048 83.516 \n \nN/A $ ' 211,785.96 $ _ _=21....1....,7..8..-.--'5._9__6\"$ 8,067,315.80 $_~8,_0__0___1..._,2=2~1._6__-'-1 \n \nNIA $ 429,400.12 $ \n \n217,804.67 (3) \n \n93.525 93.037 \n \nN/A \n \n$ \n \nNIA \n \n14,546.32 $ 4 347.00 \n \n18,009.80 (3) 4 376.51 (3) \n \n$ \n \n18,893.32 $ _ _ _2=2=,3=8.6.....3..1...a.... \n \n17.249 17.255 17.250 \n \nN/A $ NIA N/A \n \n47,154.16. $ 84,878.27 41 177.29 \n \n47,206.50 (3) 84,878.27 41 177.29 \n \n$ 173 209.72 $ _ _....;1-'-73:::,,:.26::a:2:.:..0:a.:6._ \n \n$ \n \n42,345.63 $ \n \n42,345.63 \n \n72,575.97 2,500.00 \n \n72,575.97 2,500.00 \n \n$ 111 421.60 s___11..1..,_4\"\"2\"'\"\"'1._s_o_:;_ \n \nTotal Federal Financial Assistance \nNIA = Not Available \n \n$ 14.606.584.74 $ \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. Commodities valued in the amount of $60,485.00 were received during the current fiscal year from the U. S. Department of Defense and were not recorded in the School District's financial statements. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \n(4) Funds earned on this program do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (\") in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \n \n16.580.661.62 \n \nSee notes to the general-purpose financial statements. \n \n-40- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION .SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \nGRANTS \n \nEducation, Georgia Department of \n \n_Quality Basic Education \n \nDirect Instructional Cost \n \nKindergarten Program \n \n$ \n \nKindergarten Program - Early Intervention Program \n \nPrimary Grades (13)Program \n \nPrimary Grades - Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nMiddle Grades (6-8) Program \n \nMiddle S_chool (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategoryV \n \nSupplemental Speech \n \nGifted Student  Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nMedia Center Program \n \nStaff and Professional Development \n \nIndirect Cost \n \nCategorical Grants \n \nPupil Transportation \n \nRegular \n \nBus Replacement \n \nNursing Services \n \nPrincipal Supplements \n \nVocational Supervisors \n \nMigrant Education \n \nMid-term Adjustment Hold-Harmless \n \nEducation Equalization Funding Grant \n \nFood Services \n \nVocational Education \n \nOther State Programs \n \nApprenticeship Program \n \nAt-Risk Summer School Program \n \nGeorgia Leaming Resources System \n \nHealth Insurance \n \nMentoring Program \n \nMentor Teachers \n \nPreschool Handicapped Program \n \nRemedial Summer School \n \nSeverely Emotionally Disturbed \n \nLottery Programs \n \nComputers in the Classroom \n \nVocational Technology Program \n \n3,764,548.00 411,743.00 \n11,161,069.00 737,702.00 \n5,283,558.00 1,005,102.00 7,698,408.00 7,131,665.00 1,730,008.00 \n256,334.00 2,709,800.00 2,618,684.00 \n502,767.00 35,434.00 14,578.00 \n812,088.00 856,430.00 646,905.00 1,546,519.00 395,250.00 9,334,072.00 \n1,612,176.00. 492,377.00 327,415.00 68,136.00 68,077.00 6,154.00 490,747.00 \n4,283,659.00 $ \n85,451.95 \n50,000.00 37,992.99 \n1,473,742.08 4,200.00 \n15,322.00 297,545.05 \n15,984.27 \n \n490,264.00 \n83,305.70 \n2,028,806.23 356,042.40 209,944.39 \n \n$ 3,764,548.00 411,743.00 \n11,161,069.00 737,702.00 \n5,283,558.00 1,005, 102.00 7,698,408.00 7,131,665.00 1,730,008.00 \n256,334.00 2,709,800.00 2,618,684.00 \n502,767.00 35,434.00 14,578.00 \n812,088.00 856,430.00 646,905.00 1,546,519.00 395,250.00 9,334,072.00 \n1,612,176.00 492,377.00 327,415.00 68,136.00 68,077.00 6,154.00 490,747.00 \n4,283,659.00 490,264.00 85,451.95 \n50,000.00 37,992.99 83,305.70 1,473,742.08 \n4,200.00 15,322.00 297,545.05 15,984.27 2,028,806.23 \n356,042.40 209,944.39 \n \nGeorgia State.Financing and Investment Commission Reimbursement on Construction Projects \n \n$ 1,104,970.20 \n \n1,104,970.20 \n \nOffice of the Governor Governor's Emergency Fund (1) Georgia Challenge Program \n \n28,000.00 \n \n47,948.01 \n \n47,948.01 28,000.00 \n \nOffice of School Readiness Pre-Kindergarten Program \n \n918,463.38 \n \n918,463.38 \n \n 41  \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \nSCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \nGRANTS Office of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of Continuation of Department's Elementary School Foreign Language Model Program Enrichment Program for Middle School-age Children Georgia's Reading Challenge \nOTHER Education, Georgia Department of Reimbursement for Substitute Salaries \n(1) The purpose of these funds - disaster relief. \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 300,844.00 \n \n$ 300,844.00 \n \n154,406.00 \n28,589.58 124,087.00 \n \n154,406.00 \n28,589.58 124,087.00 \n \n59.31 \n \n59.31 \n \n$ 68,589,629.23 $ 4,114,826.10 $ 1,152,918.21 $ 73,857,373.54 \n \nSee notes to the general-purpose financial statements. \n \n-42- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"3\" \n \nPROJECTS \n \nORIGINAL ESTIMATED \nCOST (1). \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS \n \nPROJECT STATUS \n \nThe repayment of principal and interest on \n \nthe School District's Series 1993 Bonds, \n \ncoming due January 1. 1998 and thereafter \n \nthrough their final maturity on January 1, 2001, \n \nthe maximum amount of debt to be retired \n \nnot to exceed $1,823,245.00 \n \n$ \n \n1,823,245.00 $ \n \n1,823,245.00 $ \n \n466,830.00 $ 1,356,415.00 Completed \n \nThe acquisition, construction and equipping of six new elementary physical education facilities, two new middle schools, supply services freezer, completion of expansion program at five schools, roof replacement on 24 buildings, technology power upgrade on 30 buildings, ceilings and lights in 27 buildings, HVAC upgrades on 24 buildings, four new high school field houses, three support facilities for new elementary schools, renovation of McIntosh Teacher Academy, renovation of five schools, Highland conversion, underslab plumbing replacement in 17 buildings, asbestos removal at 48 sites, lawn revitalization at 30 sites, facilities department shops, tower, media service center, security lighting at 28 sites, sports field lighting at four sites and 41 new vehicles, including the acquisition of all necessary property, the maximum cost of such projects not to exceed $88,653,060.00 \n \n88,653,060.00 106,587,982.66 17,283,592.50 56,626,835.99 Ongoing \n \n$ 90,476,305.00 $ 108,411.227.66 $ 17,750,422.50 $ 57,983,250.99 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest expense to provide advance funding for the above projects as follows: \n \nPrior Year \n \n$ 2,737,067.71 \n \nCurrent Year \n \n901,962.50 \n \nTotal \n \nSee notes to the general-purpose financial statements. \n \n 43. \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE) \nEARNINGS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001 \n \n. SCHEDULE \"4\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (11 \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \n4,332,831.00 $ 5,124,235.58 $ \n \n473,898.00 \n \n712,013.23 \n \n12,845,911.00 11,406,724.80 \n \n849,061.00 \n \n1,309,475.85 \n \n6,081,147.00 \n \n6,397,149.87 \n \n1,156,829.00 \n \n2,202,759.20 \n \n8,860,536.00 \n \n8,470,303.82 \n \n8,208,239.00 \n \n9,603,308.64 \n \n1,991,164.00 \n \n2,789,865.49 \n \n7,064,112.00 \n \n290,319.87 \n \n2,455.422.33 \n \n3,241,527.86 \n \n317,075.50 \n \n934,679.00 \n \n699,059.56 \n \n985,714.00 \n \n1,608,411.10 \n \n744,560.00 \n \n595,909.42 \n \n. 20,637.95 $ \n200,616.90 \n145,520.95 78,643.52 63,352.06 151,414.26 154,505.06 \n \n5,144,873.53 .712,013.23 \n11,607,341.70 1,309,475.85 6,542,670.82 2,281 .402.72 8,533,655.88 9,754,722.90 . 2,944,370.55 \n \n130,218.84 \n-331.07 8,826.19 \n151,136.31 \n \n290,319.87 2,585,641.17 3,241,527.86 \n316,744.43 707,885.75 1,608,411.10 747,045.73 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n54,528,681.00 $ 57,223,562.12 $ 1,104,540.97 $ 58,328,103.09 \n \nMedia Center Program Staff and Professional Development Mid-Term Hold Harmless \n \n1,779,977.00 454,916.00 568,506.00 \n \n2,366,627.02 190,025.81 768,158.94 \n \n376,454.09 288,708.81 \n84,149.25 \n \n2,743,081.11 478,734.62 852,308.19 \n \nTOTAL QBE FORMULA FUNDS \n \n$ 57,332,080.00 $ 60,548,373.89 $ 1,853,853.12 $ 62,402,227.01 \n \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nSee notes to the general-purpose financial statements. \n \n-44- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nEARNINGS AND EXPENDITURES - BY SITE :VEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"5\" \n \nSITE \nLamar Reese Elementary School Alice Coachman Elementary School Martin Luther King, Jr. Elementary School Albany High School Highland Middle School Monroe High School Radium Springs Middle School Sylvandale Elementary School Albany Middle School Dougherty Comprehensive High School Isabella Elementary School Magnolia Elementary School Morningsiqe Elementary School Sylvester Road Elementary School Dougherty Middle School Jackson Heights Elementary School Northside Elementary School Turner Elementary School Lake Park Elementary School Merry Acres Middle School Palmyra Elementary School Sherwood Elementary School Westover High School Lincoln Fundamental School Mock Road Elementary School Radium Springs Elementary School Southside Middle School West Town Elementary School Exceptional Students Program Phoenix School And Suspension Center Central Office (Alternative Education Program) Other Auxiliary Facility \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n1,647,296.00 $ \n \n1,761,703.00 \n \n1,646,164.00 \n \n2,894,313.00 \n \n1,156,829.00 \n \n3,726,573.00 \n \n1,851,640.00 \n \n1,599,130.00 \n \n1,700,592.00 \n \n3,465,270.00 \n \n960,115.00 \n \n2,172,520.00 \n \n1,890,667.00 \n \n1,631,887.00 \n \n2,946,089.00 \n \n1,356,151.00 \n \n1,607,915.00 \n \n1,217,088.00 \n \n1,866,444.00 \n \n2,483,218.00 \n \n844,902.00 \n \n1,658,882.00 \n \n3,194,431.00 \n \n. 2,347,592.00 \n \n1,287,555.00 \n \n1,436,268.00 \n \n1,914,600.00 \n \n1,?18,287 .00 \n \n744,560.00 \n \n1,486,165.99 1,778,568.41 1,620,058.73 3,136,752.72 1,222,186.34 3,790,989.18 2,026,852.30 1,563,710.66 1,740,500.63 3,518,654.45 \n927,190.51 2,573,289.51 1,780,270.91 1,677,077.85 2,982,177.84 1,379,023.06 1,554,611.12 1,143,118.14 1,746,056.13 2,455,799.82 \n866,540.91 1,499,550.70 3,740,863.24 2,452,571.92 1,348,316.43 1,601,125.82 2,037,730.40 1,526,642.56 2,113,316.09 \n442,851.84 \n595,538.88 \n \n$ \n \n54,528,681.00 $ 58,328,103.09 \n \nSee notes to the general-purpose financial statements. -45- \n \n SECTION II . COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL \\\\'. HINTON \nSTATE AUDITOR 1404) 656-2174 \n \nDEPARTMENT.OF AUDITS AND ACCOUNTS \n254 Washington Sireet. S.W.. Suite 214 Atlanta, Georgia 30334-8400 \nDecember 18, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements ofDougherty County Board ofEducation asofand for the year ended June 30, 2001, and have issued our report thereon dated December 18~ 2001. This report was qualified for departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCoinpliance \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dougherty County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2001YB-30 \n \n control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dougherty County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6471-01-02 and FS-6471-01-03. \nA material weakness is a condition in which the design or operation of one or m9re of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \nThis report is intended solely for the information and use of the audit committee, management,  members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n. \nRWH:gp 2001YB-30 \n \n w. RUSSELL \n \nHINTON \n \nSTATE AUDITOR \n \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 \nDecember 18, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand. Superintendent and Members of the. Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Dougherty County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofDougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dougherty County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dougherty County Board ofEducation's compliance with those requirements. \n2001SA-30 \n \n In our opinion, the Dougherty County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001. \nInternal Control Over Compliance \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal program~. In planning and performing our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nto We noted certain matters involving the internal control over compliance and its operation that we \nconsider be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or ope~ation ofthe internal control over compliance that, in our judgment, could adversely affect the Dougherty County Board of Education's ability to adininister a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6471-01-01 and FA-6471-01-02. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the \nreportable conditions described above is amaterial weakness. \nThis report is intended solely for the information and use of the audit committee, management, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:gp 2001SA.:3o \n \nState Auditor \n \n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \n6471-96-02  FS-6471-98-01 \nFS-6471-99-01 FS-64 71-99-02 FS-6471-99-05 FS-6471-00-01 FS-64 71-00-02 FS-6471-00-03 FS-64 71-00-04 FS-64 71-00-05 \n \nFurther Action Not Warranted Previously Reported Corrective Acton Implemented Further Action Not Warranted Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved -Bee Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $25,956.39 Finding Control Number: FS-6471-99-02 \n \nTo be resolved by future increase in QBE Local Five Mill Share. \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-6471-00-01 \n \nDuring fiscal year 2001, the School District approved the plan to transfer $203,000.00 from the General Fund each year for the next five years to correct the deficit in the Capital Projects - Federal Projects Fund. The transfer of funds for fiscal year 2002 was made January 2, 2002. The School District is currently reviewing capital project expenditures with Federal Emergency Management Agency to determine whether.additional funding is available. \n \nCASH AND CASH EQUNALENTS GENERAL LEDGER  Inadequate Accounting Procedures Finding Control Number: FS-6471-00-02 \n \nThe School District completed the proper reconciliation of all bank accounts through  June 30, 2001. Proper reconciliation procedures have been continued for fiscal year 2002. Nine of the twelve accounts are reconciled through the. current month ofthe current fiscal \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR.YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-6471-00-02 \n \nyear. Proper reconciliations for the remaining three accounts will be brought forward to the current month by the end of January, 2002. All reconciliations from January, 2002 forward will be performed monthly in a timely manner. \n \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Leave Records Amount: $5,156.11 Finding Control Number: FS-6471-00-04 \n \nThe School District will seek reimbursement for all overpayments. All noted underpayments will be fully paid. A review of payroll and leave procedures by the Admini_strative staff has resulted in extensive procedral changes. \n \nGENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled .Finding Control Number: FS-6471-00-05 \n \nDuring Fiscal Year 2002 the School District implemented procedures to ensure that salary and travel reports are accurate and properly reconciled to the general ledger prior to submission of the reports to the State. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-00-01 F A-64 71-00-02 \n \nUnresolved- See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES ELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Finding Control Number: FA-6471-00-01 The School District has informed responsible staff of the need to support information reported on the Title I application with adequate documentation and records. Title I staff has reviewed the 2002 application and has verified that supporting documentation has been properly maintained. \n-3- \nI \n \n SECTION IV \nFINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was qualified for departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dougherty County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents \n \nEmployee Compensation \n \nNone ofthe reportable conditions described above are considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dougherty County Board of Education disclosed reportable conditions in internal control over major programs for the following compliance requirements. \n \nCash Management \n \nEligibility \n \nNone ofthe reportable conditions described above are considered to be a mat~rial weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board ofEducation's report on compliance with requirements applicable to major programs was.unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Dougherty County Board of Education's audit disclosed audit findings required to be reporte~ by section .510(a) of 0MB Circular A-133. These audit findings are included in section N of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.\"553 Food arid Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I- Grants to Local Educational Agencies \n \nI . \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nI SUMMARY OF AUDITOR'S RESULTS \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $490,526.76. \n9. Low Risk Auditee The Dougherty County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education. \nII FINANCIAL STATEMENT FINDINGS AND OUESTIONEDCOSTS \nBUDGET PREPARATION/EXECUTION . Deficit Fund Balance Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6471-01-01 \nAt June 30, 2001, the liabilities and reserves exceeded assets available for the Capital Projects Federal Projects Fund by $1,274,045.41. O.C.G.A. 20-2-67 (b) requires that the Superintendent submit to the Georgia Department of Education both a response to this condition and a corrective action plan designed to correct the budget deficit. The School District should establish budgetary procedures to ensure that funding is available prior to the School District committing to expenditures. \nCASH AND CASH EQUNALENTS Inadequate Accounting Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-01-02 \nAccounting procedures of the Dougherty County Board of Education were insufficient to provide adequate internal control over the bank reconciliatiotiprocess.. The bank reconciliations for each month of the fiscal year were not completed by the School District until October of 2001. \nThese deficiencies occurred because ofmanagement's failure to establish procedures to analyze and reconcile balances on the general ledger with supporting records in a timely manner. \nThe School District should establish appropriate procedures to ensure that cash is posted, balanced and reviewed on a monthly basis and that detailed. records supporting the general ledger are complete, accurate and reliable. \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Salary Overpayment Inadequate Leave Records Reportable Condition Amount: $3,299.56 Repeated From Prior Year Finding Control Number: FS-6471-01-03 \nA sample of forty employee's payroll records was selected and examined to test for accuracy of payroll records of the Dougherty County Board of Education. The following deficiencies were noted: \nSalary Overpayment \n The Board overpaid an employee$3,299.56. The overpayment was the result ofan error in calculation: \nInadequate Leave Records \n Sick leave was accrued at an incorrect rate for three employees. \n Supporting documentation for sick, personal and vacation leave could not be located for three employees. \n Vacation leave documentation provided for one employee did not support amounts posted to the vacation leave records history. \nThese deficiencies occurred due to the School District's failure to adequately monitor administrative procedures regarding sick, personal and vacation leave records. \nThe School District should implement procedures to ensure that all payroll disbursements are based on approved contracts, salary scales and time worked. In addition, leave records should be accurate and maintained in accordance with the School District's sick, personal and vacation leave policies. The School District should seek reimbursement for the overpayment for deposit to the School District's General Fund. \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION. SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nIl FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nGENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6471-01-04 \nThe detailed listings of salary and travel payments made to employees as submitted by the School District to the Georgia Department ofAudits was not reconciled with the general ledger as presented for audit. Unidentified variances totaling $170,278.78 and $24,581.21 for salaries and travel respectively could not be identified. \nThis condition occurred because management did not reconcile amounts submitted to Georgia Department of Audits to the School District's general ledger. Procedures should be established by the School District to ensure that the detailed listing of salary and travel is reconciled to the accounting reco~ds prior to submission to the Georgia Department of Audits. \nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-01-01 \nA review ofcash management procedures for the Elementary and Secondary Act - Title I - Grants to Local Educational Agencies (CFDA 84.010) disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 2001, the program had excessive ending monthly cash balances for six months. The excessive cash balances were a result ofmanagement's failure to accurately forecast the cash need ofthis program. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department of Education and disbursement of such funds by the School District. \n-4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS ELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Reportable Condition U.S. Department of Education Through Georgia Department of Education. Finding Control Number: FA-6471-01-~2 . The School District could not provide accurate documentation to support section IV of the Title I application pertaining to the determination ofeligible and participating attendance areas and school allocations for the 2001 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies (CFDA 84.010) Program. As provided for in the grant application and required by 34 CFR 76.730, the School District assured the Georgia Department ofEducation that it will keep records and provide information as may be required for audit purposes. This condition was a result ofthe School District's failure to maintain appropriate documentation for information required on the grant application. The School District should establish procedures to ensure that applications are complete, accurate and that proper documentation is maintained in compliance with the requirements of the grant application and 34 CFR 76.730. The Georgia Department ofEducation should review this matter to determine ifa reclaim offunds is appropriate. \n-5- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b1999-h2000","title":"Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statement 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, Dougherty County, 31.53337, -84.21625"],"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: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 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":["Auditors' reports--Georgia","Financial statements--Georgia","Dougherty County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statement for the fiscal year ended June 30, 2000"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n \nGiA \n \nA\u0026OO \n \n \n \n~ RI \n \n.lb \n \n1)7 \n \n \n \n\\Cf9q -1.000 \n \nI \nDOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \n \n \n \nREPORT ON AUDIT \n \nOF THE FINANCIAL STATEMENTS \n \n \n \n \n \nFOR THE FISCAL YEAR ENDED JUNE 30, 2000 \n \nRussell W. Hinton State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUPS \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES  \n \nALL GOVERNMENTAL FUND TYPES \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \nD \n \nSTATEMENT OF REVENUES, EXPENSES AND \n \nCHANGES IN RETAINED EARNINGS \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \n-E \n \nSTATEMENT OF CASH FLOWS \n \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \nF NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nADDIDONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nCAPITAL PROJECTS FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHA. NGES IN FUND BALA. NCES DEBT SERVICE FUND \n \nK \n \nCOMBINING BALANCE SHEET \n \nL \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nPage \n \n2 \n6 \n \n9 \n \n10 \n \n \n \n \n \n11 \n \n- 13 \n \n28 \n30 32 34 36 37 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nPage \n \nFINANCIAL \n \nEXHIBITS \n \nADDIDONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nM \n \nFIDUCIARY FUND TYPE \n \nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILfllES \n \nAGENCY FUNDS \n \n38 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n39 \n \n2 SCHEDULE OF STATE REVENUE \n \n- \n \n41 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n42 \n \nANALYSIS OF ivJ.J.J \n \nEXPENDITURE REQUIREMENTS \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \n \n4 \n \nOVERALL \n \n43 \n \n5 \n \nBYPROGRAM \n \n44 \n \n \n \nSECTION II \n \n \n \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \n \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \n \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION ill \nAUDI'I'E.E'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nv~Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \nSECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n \n  \n \nSECTION I \nFINANCIAL \n \n \n  \n\u003ct:/ \n \n=- \n \n. \n \ni-; \n \n-I \n \nrJI: ~ \u003e j \n \nRussELL W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nApril 4, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements ofthe Dougherty County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Dougherty County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \nWe conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo1111 the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \nAs described in the notes to the general purpose fmancial stateinents, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2000ARL-13 \n \n * The Board did not provide the final approved budget for use in preparing the combined statement ofrevenues, expenditures and changes in fund balances - actual and budget, as a part of its general purpose financial statements. The budget reported in the general purpose financial statements Exhibit ''C'' for Special Revenue Fund is not the final approved budget and does not reflect materially accurate revenues, expenditures and changes in fund balances for the Special Revenue Fund. To confo11n to generally accepted accounting principals, the final approved budget reflecting materially correct amounts should be reflected in the general purpose financial statements. \n* The school activity accounts reported in the general purpose financial statements do not \naccurately reflect the revenues, expenditures and changes in fund balances for all school activity accounts. To confo11n to generally accepted accounting principles, all accounts should be recorded in the general purpose financial statements. \n* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo1111 to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been dete1n1ined, but are believed to be material. \n- \nIn our opinion~ except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above. present fairly, in all material respects, the fmancial position of the Dougherty County Board of Education as ofJune 30, 2000, and the results ofits operations and the cash flows of its proprietary fund for the year then ended, in confo1111ity with generally accepted accounting principles. \nIn accordance with Government Auditing Standards, we have also issued our report dated April 4, 2001, on our consideration of the Dougherty County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfo11ned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \n- \nOur audit was perfo1n1t:d for the purpose of fo1mi11g an opinion on the general purpose financial statements of the Dougherty County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through M) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of \n2000ARL-13 \n \n Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such info11nation 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 infu11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- \n6-24. \n \n~ -Respectfully submitted, ....... '  ell W. Hinton Sta e Auditor \nRWH:gp \n2000ARL-13 \n \n \n \n \n \n  \nDOUGHERTY COUNTY BOARD OF EDUCATION \n \n- \n \n \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2000 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nPrepaid Items \nInventories Consumable Supplies \nFood \nDonated Commodities Purchased Food \nGeneral Fixed Assets Land Buildings Equipment \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of: Bond Debt Compensated Absences \nTotal Assets \n \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nDEBT SERVICE \nFUND \n \n$ 4,320,866.73 $ 963,845.59 \n \n$ 29,207.73 \n \n3,708,998.01 \n \n$ 38,397,194.37 4,659,471.53 \n \n829,503.12 2,121,173.05 \n \n9,023,135.22 \n \n57.51 \n \n100,224.24 \n \n443,112.04 \n \n27,909.51 \n150,551.70 238,114.20 \n \n$ 9\",402,704.14 $ 3,501,594.05 $ 47,420,329.59 $ 4,688,736.77 \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n2- \n \n EXHIBIT \"A\" \n \n \n \nPROPRIETARY FUND TYPE INTERNAL \nSERVICE FUND \n \nFIDUCIARY FUND TYPE AGENCY FUNDS \n \n$ \n \n7,779.79 $ \n \n344,180.93 \n \n1,851,027.20 \n \n36,692.81 \n \nACCOUNT GROUPS \n \nGENERAL \n \nGENERAL \n \nFIXED \n \nLONG-TERM \n \nASSETS \n \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 5,665,880.77 $ 5,287,026.87 \n \n48,616,691.11 \n \n54,688,240.92 \n \n, \n \n12,010,561.71 \n \n13,601,089.94 \n \n100,224.24 \n \n66,685.08 \n \n471,021.55 \n150,551.70 238,114.20 \n \n235,157.10 \n221,042.79 136,645.35 \n \n$ 9,124,549.00 167,383,251.26 25,691,517.75 \n$ \n \n \n4,688,736.77 \n \n9,124,549.00 167,383,251.26 25,691,517.75 \n4,688,736.77 \n \n8,151,535.13 150,375,446.80 25,374,540.52 \n4,606,371.85 \n \n17,841,263.23 873,608.09 \n \n17,841,263.23 873,608.09 \n \n24,973,628.15 852,577.89 \n \n$ 1,858,806.99 $ \n \n \n380,873.74 $ 202,199.318.01 $ 23.403.608.09 $ 292.855.971.38 $ 288.569,988.39 \n \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALLFUNDTYPESANDACCOUNTGROUPS \nJUNE 30, 2000 \n \nLIABILITIES AND FUND EQUITY \n \nGENERAL FUND \n \nGOVERNMENTALFUNDTYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nDEBT SERVICE \nFUND \n \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Compensated Absences General Obligation Bonds Payable \nTotal Liabilities \nFUND EQUITY \n \n$ \n$ 10,747.62 $ 341,854.86 55,812.56 1,338,589.63 \n5,000,000.00 3,698.03 1,051,290.16 \n \n4,067,635.45 861,399.43 \n \n4,385.00 \n \n835,927.43 217,783.06 \n \n$ 5,074,643.21 $ 2,731,734.65 $ 5,982,745.37 \n \n \nInvestment in General Fixed Assets \n \nRetained Earnings \n \nFund Balances \n \nReserved \n \nFor Arbitrage Rebate Tax \n \nFor Continuation of Federal Programs \n \n$ \n \nFor Debt Service For Expired Grant Balances/Questioned Costs $ \n \n37,207.46 \n \nFor Flood Recovery \n \nFor Inventories Consumable Supplies \n \n443,112.04 \n \nFood Donated Commodities \n \nPurchased Food \n \nFor Purpose of Bond Issue \n \nFor SPLOST Projects \n \nFor State Capital Outlay Projects \n \nUnreserved Designated for Self-Insurance Undesignated \n \n1,857,868.49 1,989,872.94 \n \nDeficit \n \nTotal Fund Equity \n \n$ 4,328,060.93 $ \n \n$ \n10,915.93 \n \n832,879.55 $ 4,688,736.77 \n \n27,909.51 \n150,551.70 238,114.20 \n \n25,009,937.19 15,670,212.22 \n1,779,344.07 \n \n342,368.06 \n \n0.00 \n \n0.00 \n \n-1,854,788.81 \n \n769,859.40 $ 41,437,584.22 $ 4,688,736.77 \n \nTotal Liabilities and Fund Equity \n \n$ 9,402,704.14 $ 3,501.594.05 $ 47,420,329.59 $ 4,688,736.77 \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-4- \n \n EXHIBIT \"A\" \n \n \n \nPROPRIETARY FUND TYPE INTERNAL \nSERVICE FUND \n \nFIDUCIARY FUND TYPE AGENCY FUNDS \n \nACCOUNT GROUPS \n \nGENERAL \n \nGENERAL \n \nFIXED \n \nLONG-TERM \n \nASSETS \n \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 301 2000 \n \nJUNE 30, 1999 \n \n$ \n \n274,883.59 \n \n$ \n \n380,873.74 \n \n$ \n \n274,883.59 $ _ _.::;;38:.::0...a,8a.:.7.:a:3.\"-74~ \n \n$ \n$ 873,608.09 22,530,000.00 \n \n4,067,635.45 $ 1,214,001.91 1,394,402.19 5,000,000.00 1,054,988.19 \n274,883.59 835,927.43 217,783.06 \n4,385.00 380,873.74 873,608.09 22,530,000.00 \n \n2,169,322.51 1,144,389.19 1,394,335.60 5,000,000.00 \n156,052.77 284,435.37 2,161,689.30 2,376,666.51 \n9,385.00 495,372.22 852,577.89 29,580,000.00 \n \n$ 23,403,608.09 $ 37,848,488.65 $ 45,624,226.36 \n \n$ 1,583,923.40 \n \n- \n$ 202,199,318.01 \n \n$ 202,199,318.01 $ 183,901,522.45 \n \n1,583,923.40 \n \n1,536,698.75 \n \n- \n0.00 $ 1,583,923.40 \n \n0.00 $ 202,199,318.01 \n \n832,879.55 10,915.93 \n4,688,736.77 37,207.46 \n \n6,976.75 4,606,371.85 \n66,516.69 1,573,337.06 \n \n471,021.55 \n150,551.70 238,114.20 25,009,937.19 15,670,212.22 1,779,344.07 \n \n235,157.10 \n \n221,042.79 136,645.35 29,239,307.76 11,661,921.38 195,626.04 \n \n1,857,868.49 2,332,241.00 -1,854,788.81 \n \n1,772,442.30 7,792,195.76 \n \n$ 255,007,482.73 $ 242,945,762.03 \n \n$ 1,858,806.99 $ \n \n380,873.74 $ 202,199,318.01 $ 23,403,608.09 $ 292,855,971.38 $ 288,569,988.39 \n \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \nTotal Revenues \n \nEXPENDITURES \n \n \n \nCurrent \n \nInstruction \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nFood Services Operation \n \nEnterprise Operations \n \nCommunity Services Operations \n \n \n \nCapital Outlay \n \nDebt Service \n \nPrincipal \n \nInterest \n \nPaying Agent Fees \n \nTotal Expenditures \n \nExcess of Revenues over (under) Expenditures \n \nOTHER FINANCING SOURCES {USES) \n \nOperating Transfers In Operating Transfers Out \n \nTotal Other Financing Sources (Uses) \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \n \nFUND BALANCE JULY 1 \n \nAdjustments Prior Year Expenditures \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 63,517,748.28 $ 3,614,950.30 \n \n205,679.49 \n \n13,654,533.55 \n \n30,437,163.20 \n \n2,156,246.29 \n \n1,983,993.79 \n \n$ 96,316,837.26 $ 19,253,477.64 \n \n$ 64,508,348.72 $ \n5,426,725.82 2,908,620.34 2,827,640.92 1,493,047.79 7,272,842.82 1,696,955.89 9,030,680.37 4,216,142.79 1,676,774.79 \n265,671.43 931.60 \n326,063.58 114,862.83 313,820.60 \n \n7,530,981.44 \n1,798,547.41 1,323,948.58 \n64,126.34 305,637.10 \n85,038.47 \n146,769.85 81,674.89 \n39,234.12 7,881,289.35 \n252,124.56 613,136.66 \n12,328.79 \n \n$ 102,079,130.29 $ 20,134,837.56 $ -5,762,293.03 $ _ _-8__8...,1.,;a,3.a;..59\"'-.=9_2 _ \n \n$ 1,252,551.39 $ \n-209,815.03 \n \n209,815.03 \n \n$ 1,042,736.36 $ _ _2___0_...9....._,8_1__5___.=03~ \n \n$ -4,719,556.67 $ \n8,789,572.45 \n \n-671,544.89 1,441,404.29 \n \n258,045.15 \n \nFUND BALANCE JUNE 30 \n \n$ 4,328,060.93 $ _ _7_6_9.,,8..,59_.4_0_ \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n \n-6- \n \n EXHIBIT \"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 2,343, 193.14 5,212,534.20 8,618,849.75 $ 2,296,257.11 \n$ 18,470,834.20 $ \n \n$ \n8,312,501.51 41,784.40 \n \n69,475,891.72 $ 19,072,747.24 47,368,514.46 6,478,281.59 \n \n69,065,617.07 39,183,028.10 43,813,144.81 6,489,103.48 \n \n8,354,285.91 $ 142,395,435.01 $ 158,550,893.46 \n \n \n \n$ \n \n855,761.99 \n \n595,392.21 18,209.26 \n143,448.47 76,922.25 263,885.56 \n \n2,712.68 16,236,513.26 \n$ \n \n$ 18, 192,845.68 $ \n \n$ \n \n277,988.52 $ \n \n$ 72,895,092.15 $ 66,582,920.77 \n \n7,050,000.00 1,218,210.00 \n3,710.99 \n \n7,225,273.23 4,232,568.92 3,487,159.47 1,816,894.15 7,501,329.76 1,773,878.14 9,441,335.78 4,297,817.68 1,676,774.79 \n304,905.55 7,882,220.95 \n578,188.14 730,712.17 16,562,662.65 \n7,050,000.00 1,218,210.00 \n3,710.99 \n \n6,430,029.75 4,090,554.63 2,763,334.38 1,874,339.36 6,680,931.53 1,764,019.85 8,581,747.06 4,329,948.45 1,595,475.79 \n449,483.20 7,510,525.42 \n578,447.34 728,548.57 34,703,473.70 \n6,700,000.00 1,607,652.71 \n1,681.31 \n \n8,271,920.99 $ 148,678,734.52 $ 156,973,113.82 \n \n82,364.92 $ -6,283,299.51 $ 1,577,779.64 \n \n$ -1,252,551.39 $ -1,252,551.39 \n \n$ 1,462,366.42 $ -1,462,366.42 \n \n863,549.32 -868,929. 79 \n \n$ \n \n0.00 $ _ __.,:-5:.i,:,3~8~0:....:.4.:,_7 \n \n$ \n \n-974,562.87 $ \n \n42,670,192.24 \n \n82,364.92 $ 4,606,371.85 \n \n-6,283,299.51 $ 57,507,540.83 \n \n1,572,399.17 55,935, 141.66 \n \n-258,045.15 \n \n0.00 \n \n$ 41,437,584.22 $ 4,688,736.77 $ 51,224,241.32 $ 57,507,540.83 \n \n-7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - (NON-GAAP BASIS) GENERALANDSPECIALREVENUEFUNDS \nYEAR ENDED JUNE 30. 2000 \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \n$ 61,493, 133.00 $ \n337,000.00 30,185,471.00 \n816,500.00 \n \n63,517,748.28 205,679.49 \n30,437,163.20 2,156,246.29 \n \nTotal Revenues \n \n$ 92,832,104.00 $ 96,316,837.26 \n \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nCapital Outlay \n \n \n \n$ 59,490,609.00 $ 64,508,348.72 \n \n4,678,417.00 2,714,902.00 2,756,874.00 1,458,646.00 6,822,783.00 1,707,634.00 8,542,670.00 4,092,600.00 1,476,630.00 \n293,004.00 12,000.00 \n189,874.00 313,600.00 \n \n5,426,725.82 2,908,620.34 2,827,640.92 1,493,047.79 7,272,842.82 1,696,955.89 9,030,680.37 4,216,142.79 1,676,774.79 \n265,671.43 931.60 \n326,063.58 114,862.83 313,820.60 \n \nTotal Expenditures \n \n$ 94,550,243.00 $ 102,079,130.29 \n \nExcess of Revenues over (under) Expenditures \n \n$ -1,718,139.00 $ -5,762,293.03 \n \nOTHER FINANCING SOURCES /USES) \n \nOther Sources Other Uses \n \n$ 1,323,756.79 \n \n$ -593,300.00 \n \n-281,020.43 \n \nTotal Other Financing Sources (Uses) $ -593,300.00 $ 1,042,736.36 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures and Other Financing \n \nUses \n \n$ -2,311,439.00 $ \n \n-4,719,556.67 \n \nFUND BALANCE JULY 1. 1999 \n \n5,761,774.00 \n \n8,789,572.45 \n \nAdjustments \n \n258,045.15 \n \nFUND BALANCE JUNE 30. 2000 \n \n$ 3,450,335.00 $ 4,328,060.93 \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ 3,209,064.00 $ 3,614,950.30 \n \n8,811,725.00 \n \n13,654,533.55 \n \n9,000.00 \n \n516,100.00 \n \n1,983,993.79 \n \n$ 12,545,889.00 $ 19,253,477.64 \n \n$ 7,626,075.00 $ 7,530,981.44 \n \n1,721,941.00 1,486,471.00 \n114,205.00 453,899.00 \n5,150.00 \n \n1,798,547.41 1,323,948.58 \n64,126.34 305,637.10 \n85,038.47 \n \n281,948.00 26,100.00 \n \n146,769.85 81,674.89 \n \n1,223,400.00 \n \n39,234.12 7,881,289.35 \n252,124.56 613,136.66 \n12,328.79 \n \n$ 12,939,189.00 $ 20,134,837.56 \n \n$ -393,300.00 $ -881,359.92 \n \n$ \n \n393,300.00 $  209,815.03 \n \n$ \n \n393,300.00 $ --'2:.:0:.::9.i.::,8c.:.1:::.:5.\"\"03:... \n \n$ \n \n0.00 $ -671,544.69 \n \n0.00 \n \n1,441,404.29 \n \n$ \n \n0.00 $ =-7~6~9~,8:,::59~-;;:;:40:;;.. \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n-9- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \nYEAR ENDED JUNE 30, 2000 \n \nOPERATING REVENUES \n \nPROPRIETARY FUND TYPE SELFINSURANCE FUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 301 1999 \n \nCharges for Services \n \n$ \n \n304,375.42 $ _ _2_7_0_,5_50_.4_7_ \n \nOPERATING EXPENSES \n \nCurrent \n \nSupport Services \n \nCentral Support Services \n \n$ \n \nOperating Income (Loss) \n \n$ \n \nNONOPERATING REVENUES \n \n-581095.64 $ ______o;..;.._o_o'\"\"\" \n \nInterest Earned \n \n$ \n \n105,320.29 $ _ _..;;;9.,;;;.8,=6=95;;.;,.7 ;,.;;2;_ \n \nNet Income (Loss) Before Operating \n \nTransfers from Other Funds \n \n$ \n \n47,224.65 $ \n \n47,224.65 $ \n \n98,695.72 \n \nOperating Transfers from Other Funds \n \n5 380.47 \n \nTotal Income (Loss) \n \n$ \n \n47,224.65 $ \n \n47,224.65 $ \n \n104,076.19 \n \nRETAINED EARNINGS JULY 1 \n \n\" \n \n \n \nRETAINED EARNINGS JUNE 30 \n \n$ 1,583,923.40 $ 1,583,923.40 $ \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \nYEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"E\" \n \nCash Flows from Operating Activities: \n \nCash Received from Charges \n \nfor Services \n \nCash Paid for Administration of Fund \n \n. \n \nCash Paid for Worker's Compensation Claims \n \nNet Cash Provided (Used) by Operating Activities \n \nCash Flows from Nonoperating Revenue:  Operating Transfers from Other Funds \n \nCash Flows from Investing Activities: Interest Received on Investments Purchases/Redemptions of Investments \n \nNet Cash Provided by Investment Activities \n \nNet Increase (Decrease) in Cash \n \nCash and Cash Equivalents - July 1 \n \nPROPRIETARY FUND TYPE SELFINSURANCE FUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n304,375.42 $ \n \n304,375.42 $ \n \n270,550.47 \n \n-72,572.08 \n \n-72,572.08 \n \n-123,044.47 \n \n-299,450. 76 \n \n-299,450.76 \n \n-143,252.30 \n \n$ \n \n-67,647.42 $ \n \n-67,647.42 $ _ ___;4ci.::;,2=5=3.\"-70~ \n \n$ _ ____,;5;.:.,3;;.;8;.,;:0.;.4..;.;.7_ \n \n$ \n \n105,320.29\" $ \n \n105,320.29 $ \n \n-104,789.48 \n \n-104,789.48 \n \n98,695.72 -62,592.55 \n \n$ \n \n530.81 $ \n \n$ \n \n-67,116.61 $ \n \n$ \n \n 74,896.40 $ \n \n530.81 $ _ _....;3\"\"'6-\"-1',.;;;.0.;;;.;3...;..17;._ -67, 116.61 $ _ _ _4.:.;:5;.:.,7;.,;:3:;.;.7.;.;3.;..;4_ 74,896.40 $ _ _--a;,.29;;...,..;..15\"\"-9'\"'-.0'-'6\"- \n \nCash and Cash Equivalents - June 30 \n \n$ \n \n7 779.79 $ \n \n7 779.79 $====7==4..,.,8=9=6..4...0= \n \nReconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Decrease in Claims Payable \n \n$ \n \n-58,095.64 $ \n \n-58,095.64 $ \n \n-9,551.78 \n \n-9,551.78 \n \n0.00 4,253.70 \n \nNet Cash Provided (Used) by Operating Activities \n \n$ \n \n-67,647.42 $ \n \n-67 647.42 $====4=,2=53==70.... \n \n \n \nThe notes to the general purpose financial statements are an integral part of this statement. - 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Dougherty County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe Board uses funds and account groups 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. \nThe school activity accounts reported in the general purpose financial statements do not accurately reflect the revenues, expenditures and changes in fund balances for all school activity accounts. To confo1n1 to generally accepted accounting principles,.all accounts should be recorded in the general purpose financial statements. \nThe general purpose financial statements account for all State, Federal, Taxes a:nd Other funds under control of the Board, in compliance with- generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account groups presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \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 expenditure-s for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-te11n principal, interest and paying agent fees. \nPROPRIETARY FUND TYPE - the fund used to account for activities of the Board similar to \nthose found in the private sector, where cost recovery and the determination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type ofproprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the Board. \n \nSELF-INSURANCE FUND - the internal service fund used to account for the Board's Worker's Compensation risk financing and insurance related activities. \nFIDUCIARY FUND TYPE - the funds used to account for assets held by a government unit in a \ntrustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: \nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUPS \nGENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the Board. \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and accrued compensated absences. \n \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources;are reported in the General Long-Te1n1 Debt Account Group. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nAll proprietary funds are accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. \nAgency funds are pureIy custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were em' ployed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Depart~ent ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been eamed;but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments \nfor these two months were made and recorded as expenditures by the Board subsequent to iune 30, \n2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nThe accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the ti~e liabilities are incurre~. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PlJRPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBUDGET \nThe Dougherty County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal le,,el of budget control was established by the Board at the aggregate level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations ofthe internal service funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nThe Board was unable to provide a final approved budget ofrevenues, expenditures and changes in fund balances for all Special Revenue Funds, which results in a material understatement of the Combined Statement ofRevenues, Expenditures and Changes in Fund Balance - Budget and Actual as reflected on Exhibit ''C'' of this report. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-} 4 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. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase 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 liquidiJy. Funds may be invested in the following: \n \n- 16 - \n \n  \nDOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \nJUNE 30, 2000 \n \nEXHIBIT \"F\" \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n(2) Obligations issued by the United States government, \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions ofthe State of Georgia. \n \nRECEIVABLES \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infotmation 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 \nnece-ssitate the need for an allowance for uncollectible receivables.  \nPROPERTY TAXES \n \nThe Dougherty County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 13, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Dougherty Cou.TJ.ty \nTax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.1 % \nof taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. \n \nThe tax millage rate levied for the 1999 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.7 mills \n \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEME1\\1TS \nJUNE 30, 2000 \n \nEXHIBIT \"F\" \n \n \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to \n$16,924,992.89 and was recorded in the Capital Projects and Debt Service Funds. The State will ter1ninate collection of this tax once an additional $48,694,902.06 has been collected or on September 30, 2002, whichever occurs first. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (weighted average). The Board uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. 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 ofnet current assets. \n \nSUPPLIES INVENTORIES Inventories ofconsumable supplies are reported on the Combined Balance Sheet at cost (weighted average). The Board uses the consumption method to account for the inventory whereby purchases are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventory reported on the balance sheet is equally offset by a reservation offund balance which indicates that it is not available for discretionary expenditures even though it is a component of net current assets. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2000, are \nrecorded as prepaid items. \n \nGENERAL FIXED ASSETS \n \nGeneral fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \nJUNE 30, 2000 \n \nEXHIBIT \"F\" \n \n \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nnormal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Infrastructure assets are not capitalized by the Board. \nCOMPENSATED ABSENCES \n \nCompensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. \nGENERAL OBLIGATION BONDS \n \nThe Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te11n Debt Account Group. \nINTERFUND TRANSACTIONS \nThe Board has the following types of interfund transactions: \nReimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. \n \nOperating ttansfers are recorded for all interfund transactions other than reimbursements. \nFUND BALANCE ADJUSTMENT \n \nThe Board transferred $258,045.15 from the Capital Projects Fund - Federal Projects to the General \nFund for prior year administrative expenditures reflected in the General Fund. Administrative charges made to Federal capital outlay projects will be reviewed by the Federal Emergency Management Agency to deter1nine allowability of these expenditures for Federal reimbursement. \nMEMORANDUM ONLY -TOTAL COLUMNS \n \nTotal columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in confo11nity with generally accepted \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCli\\L ST,A.TEMENTS \nJUNE 30, 2000 \n \nEXHIBIT \"F\" \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \naccounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. \n \nDEFICIT FUND BALANCE \n \nThe fund reporting a deficit fund balance position at June 30, 2000, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Fund Type Capital Projects Fund Federal Projects \n \n$ 1,854,788.81 \n \nSubsequent to June 30, 2000, the Board began reviewing capital project expenditures with the Federal Emergency Management Agency to determine whether additional funding is available. \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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 l lOpercent 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 \naccounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United \n \nStates or of the State of Georgia, \n \n. \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n-20- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \n \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to ptincipal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \nAt June 30, 2000, the bank balances were $7,190,310.66. The amounts ofthe total bank balances are \nclassified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with \nsecurities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized \nwith securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \n \nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 553,392.94 \n \n2 \n \n6,603,953.80 \n \n3 \n \n32,963.92 \n \nTotal \n \n$7,190,310.66 \n \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2000, the carrying value ofthe Board's total investments was $48,616,691.11 which is \nmaterially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 2: DEPOSITS AND INVESTMENTS \nnot provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \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 \nconsistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and \ndiversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-t(:;1111 instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on J_une 30,_2000, was .80 year. \nNote 3: NON-MONETARY TRANSACTIONS \nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned \nvalue. See Note 1 - Inventories \nNote 4: GENERAL FIXED ASSETS \nThe following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year: \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 4: GENERAL FIXED ASSETS \n \nLand \n \nBuildings \n \nEquipment \n \nTotal \n \nBalance July 1, 1999 \n \n$ 8,151,535.13 $150,375,446.80 $25,374,540.52 $183,901,522.45 \n \nAdditions Deletions Unidentified Variance Balance June 30, 2000 \n \n973,013.87 17,062,934.44 2,455,446.97 20,491,395.28 \n \n-55,129.98 -2,101,377.90 -2,156,507.88 \n \n-37,091.84 \n \n-37,091.84 \n \n$9,124,549.00 $167,383.251.26 $25,691,517.75 $202,199,318.01 \n \nNote 5: RISK MANAGEMENT \n \nThe Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \n \nThe Board participates in the Georgia School Boards Association Risk and Insurance Management  System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their speci~lty for_ property, boiler and machinery, general liability . (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user fund on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FIN.A.NCii\\L STATEMENTS \n \nJUNE 30, 2000 \n \nNote 5: RISK MANAGEMENT \n \nBeginning \nof Year \nLiability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear \nLiability \n \n1999 2000 \n \n$ 280,181.67 $ 147,506.00 . $ 143,252.30 $ 284,435.37 $ 284,435.37 $ 289,898.98 $ 299,450.76 $ 274,883.59 \n \n. \nThe Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as \nfollows: \n \n \n \nBeginning \nof Year \nLiability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear \nLiability \n \n1999 2000 \n \n$ \n \n0.00 $ 18,658.00 $ 3,335.00 $ 15,323.00 \n \n$ 15,323.00 $ 18,131.00 $ 27,764.00 $_ __,5=,6=9=0.,,,,.0=0 \n \nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \n \n \nPosition Covered \n \n \nAmount \n \nSuperintendent \n \n \n \nAll Other Employees \n \n$ 50,000.00 $ 250,000.00 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nARBITRAGE REBATE TAX \nThe Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the \nUnited States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated liability of \n$832,879.55 at June 30, 2000, is based on tax exempt debt subject to the Tax Refo11n Act. The \nestimated liability will be updated annually for any tax-exempt issuances or changes in yields \nthrough February 24, 2003, at which time payment ofthe final calculated liability for the five-year \nperiod is required to be remitted. \n \n-24- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \nGeneral Government - Refunding - Series 1992 General Government - Series 1998 \n \nInterest Rates \n3,25% - 5.20% 3.55% - 4.10% \n \nAmount \n$ 455,000.00 22,075,000.00 \n \n$22,530.000.00 \n \nThe changes in General Long-Tenn Debt during the fiscal year ended June 30, 2000, were as follows: \n \nCompensated Absences \n \nGeneral Obligation \nBonds \n \nTotal \n \nBalance July 1, 1999 \n \n$ \n \n0.00 $29,580,000.00 $29,580,000.00 \n \nRetroactive Restatement of Prior Year Balances \n \n852,577.89 \n \n852,577.89 \n \nBalance July 1, 1999 Restated \n \n$ 852,577.89 $29,580,000.00 $30,432,577.89 \n \nAdditions \n \nAnnual Leave Earned and \nUtilized (Net) \n \n21,030.20 \n \n21,030.20 \n \nDeductions Debt Retired \n \n7,050,000.00 7,050,000.00 \n \nBalance June 30, 2000 \n \n$ 873,608.09 ~27.,530.000.00 $23,403,608.09 \n \nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n2001 2002 2003 \nTotal Principal and Interest \n \nGeneral Obligation \nBonds \n \n \n \n$ 8,343,792.50 \n \n7,942,712.50 \n \n7,988,381.25 \n \n$24.274.886.25 \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 7: LOANS PAYABLE \nAt June 30, 2000, short-term debt (temporary loans) amount to $5,000,000.00 with interest accruing at 4. 74 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 ofthe calendar year in which the loan was made. \n \nNote 8: ON-BEHALF PAYMENTS \nThe Board has recognized revenues and expenditures in the amount of $1,610,817.32 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \n \nGeorgia Department of Education \n \n \n \nPaid to the Georgia Department of Community Health \n \nFor Health Insurance ofNon-Certified Personnel \n \nIn the amount of $1,308,799.32 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost \nIn the amount of $302,018.00 \n \nNote 9: SIGNIFICANT COMMITMENTS \n \n \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: \n \nProject \n97 /96S-647-015 99-647-079 Bond Projects SPLOST Projects \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n$ 2,654,701.54 2,540,354.87 8,021,939.37 603,117.84 \n \n$ 519,560.82 585,409.38 \n \n$13,820,113.62 $1,104,970 ?O \n \nThe amounts described in this note are not reflected in the general purpose financial statements. \n \nNote 10: CONTINGENT LIABILITIES \n \n \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 10: CONTINGENT LIABILITIES \n \nfor any expenditures which are disallowed under grant te1111s. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe Board is a defendant in various legal proceedings pertaining to matters incidental to the perfo1n1ance of routine Board operations. The ultimate disposition of these proceedings is not presently detenninable, but is not believed to be material to the general purpose financial statements. \n \nNote 11: ACCUMULATED EMPLOYEES' LEAVE \n \nThe Board's administrative staff and certain other full-time employees earn up to one and one-half days per month of vacation leave. Vacation leave may be accumulated to a maximum of 30 days. Employees are paid, at their current rate of pay, for unused accumulated vacation leave up to the maximum upon retirement or te1n1ination of employment. See Note 1 - Compensated Absences \n \nNote 12: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n- \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2000 1999 1998 \n \n100% 100% 100% \n \n \n$7,855,641.03 $ 7,702,068.42 $ 7,136,105.17 \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND \nJUNE 30, 2000 \n \n \nASSETS \n \nCash and Cash Equivalents \n \nInvestments \n \nAccounts Receivable \n \nInventories \n \n \n \nConsumable Supplies \n \nFood \n \nDonated Commodities \n \nPurchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n778,097.62 $ \n \n110,047.96 \n \n78,118.44 \n27,909.51 150,551.70 238,114.20 \n \n26,417.24 \n \nTotal Assets \n \n$ --- - \n \n1,272,791.47 -- --- ----- - - - - -- \n \n$-=-===13==6,.,.,4...,6_5.=20= \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories Consumable Supplies Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n85,458.10 $ \n \n445,110.14 \n \n24,166.47 74,824.78 37,473.95 \n \n$ \n \n530,568.24 $ _ _.;..;13;.;;6....,,4.;a.65==20;;... \n \n$ \n \n27,909.51 \n \n150,551.70 238,114.20 \n \n325,647.82 $----------0-.0-0- \n \n$ \n \n742,223.23 $ _ _ _ _ _o_.0'-0_ \n \nTotal Liabilities and Fund Equity See notes to the general purpose financial statements. \n-28- \n \n$ 1,272,791.47 $ ==-==1,..3..6...,.4....6.5.=.2=0= \n \n EXHIBIT \"G\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n84,450.01 \n \n$ \n \n972,595.59 $ \n \n673,601.13 \n \n698,056.26 \n \n2,007,887.37 $ \n \n8,750.00  2,121,173.05 \n \n2,923,747.18 \n \n27,909.51 \n150,551.70 238,114.20 \n \n21,569.91 \n221,042.79 136,645.35 \n \n$ 2,092,337.38 $ \n \n8,750.00 $ \n \n3,510,344.05 $ 4,674,662.62 --- - - -- - - - - - - - \n \n$ \n \n$ \n \n232,230.29 \n \n818,654.71 \n \n1,013,816.21 \n \n$ 2,064,701.21 $ \n \n8,750.00 $ 8,750.00 $ \n \n8,750.00 $ 341,854.86 1,338,589.63 . 1,051,290.16 \n- \n2,740,484.65 $ \n \n1,402,747.75 352,934.29 \n1.~28,243.65 149,332.64 \n3,233,258.33 \n \n \n \n$ \n \n10,915.93 \n \n$ \n \n10,915.93 $ \n \n6,976.75 \n \n27,909.51 \n \n21,569.91 \n \n150,551.70 238,114.20 \n \n221,042.79 136,645.35 \n \n161120.24 $ _ _ _ _0__.0-'o'- \n \n342,368.06 \n \n1,055,169.49 \n \n$ \n \n27,636.17 $ \n \n0.00 $ \n \n769,859.40 $ 1,441,404.29 \n \n$ 2,092,337.38 $ \n \n8,750.00 $ 3,510,344.05 $ 4,674,662.62 \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \n \nState Funds Federal Funds Other Funds \n \nTotal Revenues \n \nEXPENDITURES \n \nCurrent \n \nInstruction \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \n \n \nFood Services Operation \n \nEnterprise Operations \n \nCommunity Services Operations \n \nCapital Outlay \n \nTotal Expenditures \n \nExcess of Revenues over (under) Expenditures \n \nOTHER FINANCING SOURCES \n \nOperating Transfers In \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures \n \nFUND BALANCE JULY 1 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n484,816.00 $ 1,284,111.60 \n \n5,549,814.33 \n \n1,465,875.16 \n \n$ 7,500,505.49 $ 1,284,111.60 \n \n$ 1,094,578.79 \n117,697.59 87,376.98 \n \n \n20,418.92 66,390.58 \n \n$ 7,880,783.62 252,124.56 \n \n12,328.79 \n \n \n \n$ 8,145,236.97 $ __1.;.,.,3;:;.;8;.;:6;L.,4:.;:;6=2:.=.8.;:;..6 \n \n$ -644,731.48 $ -102,351.26 \n \n102,351.26 \n \n$ -644,731.48 $ \n \n0.00 \n \n1,386,954.71 \n \n0.00 \n \n \n \nFUND BALANCE JUNE 30 \n \n$ \n \n742,223.23 $ \n \n0.00 \n \nSee notes to the general purpose financial statements. \n- 30- \n \n EXHIBIT \"H\" \n \n \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 1,811,022.70 $ 8,104,719.22 518,118.63 \n$ 10,433,860.55 $ \n \n35,000.00 $ \n \n3,614,950.30 $ \n13,654,533.55 1,983,993.79 \n \n35,000.00 $ 19,253,477.64 $ \n \n3,500,877.06 14,589,083.81 2,074,617.08 \n20,164,577.95 \n \n$ 6,390,410.62 $ \n \n45,992.03 $ 7,530,981.44 $ \n \n8,118,105.52 \n \n1,680,849.82 1,236,571.60 \n64,126.34 305,637.10 \n85,038.47 126,350.93 \n15,284.31 \n39,234.12 505.73 \n 613,136.66 \n \n1,798,547.41 \n \n1,743,385.64 \n \n1,323,948.58  64,126.34 \n \n1,315,231.74 73,511.43 \n \n305,637.10 \n \n322,332.90 \n \n85,038.47 \n \n60,045.77 \n \n146,769.85 \n \n171,049.99 \n \n81,674.89 \n \n125,103.74 \n \n1,831.52 \n \n39,234.12 \n \n162,159.13 \n \n7,881,289.35 \n \n7,509,672.22 \n \n252,124.56 \n \n213,089.43 \n \n613,136.66 \n \n594,360.65 \n \n12,328.79 \n \n \n \n$ 10,557,145.70 $ \n \n45,992.03 $ 20,134,837.56 $ 20,409,879.68 \n \n$ \n \n-123,285.15 $ \n \n-10,992.03 $ -881,359.92 $ \n \n-245,301. 73 \n \n96471.74 \n \n$ \n \n-26,813.41 $ \n \n54,449.58 \n \n10,992.03 \n \n209,815.03 \n \n169,557.10 \n \n0.00 $ 0.00 \n \n-671,544.89 $ 1,441,404.29 \n \n-75,744.63 1,517,148.92 \n \n$ \n \n27,636.17 $ \n \n0.00 $ \n \n769,859.40 $ \n \n1,441,404.29 \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items \nTotal Assets \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \n$ \n \n241,573.61 \n \n26,065,397.76 \n$ \n \n2,787,843.11 \n \n$ 26,306,971.37 $ \n \n2,787,843.11 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Arbitrage Rebate Tax For Flood Recovery For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Deficit \nTotal Fund Equity \nTotal Liabilities and Fund Equity \n \n$ \n \n$ \n \n387,771.23 \n \n76,383.40 \n \n509,516.15 406,156.75 \n5,193.98 87,632.16 \n \n$ \n \n464 154.63 $ _ ___,;1..,;,0;.;;.0=8,...,_49.;;.;9;.;..0;;...4;_ \n \n$ \n \n832,879.55 \n \n25,009,937.19 \n \n$ \n \n0.00 \n \n1,779,344.07 0.00 \n \n$ 25I842I81674 $ _ ___,;1.:7,..:..7.::,;9~34..:,.4.:.:.0:::.:7_ \n \n \n$ 26,306,971.37 $ \n \n2,787,843.11 \n \nSee notes to the general purpose financial statements. - 32 - \n \n EXHIBIT \"I\" \n \n \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nFEDERAL PROJECTS \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 1,598,373.80 \n \n$ 1,839,947.41 $ \n \n788,385.33 \n \n12,331,796.61 \n \n38,397,194.37 \n \n38,688,153.16 \n \n2,677,167.98 $ 3,558,124.13 \n \n9,023,135.22 \n \n9,956,779.40 \n \n3 791.38 \n \n$ 16,607,338.39 $ 3,558,124.13 $ 49,260,277.00 $ 49,437,109.27 \n \n \n \n$ 5,398,066.71 $ 5,907,582.86 $ 2,228,561.22 \n \n$ \n \n450,000.00 \n \n5,242.68 \n \n861,399.43 \n \n440,195.41 \n \n2,766.81 \n \n835,927.43 \n \n2,161,689.30 \n \n46,930.76 \n \n6,836.74 \n \n217,783.06 \n \n2,376,666.51 \n \n$ \n \n937,126.17 $ 5,412,912.94 $ 7,822,692.78 $ 6,766,917.03 \n \n \n \n \n$ 15,670,212.22 \n \n$ \n \n832,879.55 \n \n$ 1,573,337.06 \n \n25,009,937.19 \n \n29,239,307.76 \n \n15,670,212.22 \n \n_11,661,921.38 \n \n1,779,344.07 \n \n195,626.04 \n \n0.00 $ \n \n0.00 \n \n0.00 \n \n0.00 \n \n-1,854,788.81 \n \n-1,854,788.81 \n \n$ 15,670,212.22 $ -1,854,788.81 $ 41,437,584.22 $ 42,670,192.24 \n \n$ 16,607,338.39 $ 3,558,124.13 $ 49,260,277.00 $ 49,437,109.27 \n \n- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 \n \nREVENUES \n \nState Funds \n \nFederal Funds \n \nTaxes \n \n \n \nOther Funds \n \n \nTotal Revenues \n \nEXPENDITURES \n \nCurrent \n \nInstruction \n \nSupport Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nCommunity Services \n \nCapital Outlay \n \nLand and Land Improvements \n \nBuilding and Building Improvements \n \n \n \nEquipment \n \nTotal Expenditures \n \nExcess of Revenues over (under) Expenditures \n \nOTHER FINANCING SOURCES (USES) \n \nOperating Transfers In Operating Transfers Out \n \nTotal Other Financing Sources (Uses) \n \nExcess of Revenues and Other Financing Sources  over (under) Expenditures and Other Financing Uses \n \nFUND BALANCE JULY 1 \n \nAdjustments Prior Year Expenditures \n \nFUND BALANCE JUNE 30 See notes to the general purpose financial statements. \n- 34 - \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \n$ \n \n1,947,861.39 \n \n1,653,207.51 \n \n$ 1,545,760.29 \n \n$ 1,545I760.29 $ _ ___,;3;;.i.,6;;;.;;0;..;.1.i.0;;.,.;.6.;;.;8.\"'-90=- \n \n \n \n$ \n \n282,156.50 \n \n1,034,683.23 $ \n \n7,149,300.52 14 170.00 \n \n$ 1,316,839.73 $ _ __:.7.1,.;1,c.,::6.:.,3IC..:.47:..,0:.:.:.5:.:2:.. \n \n$ \n \n228,920.56 $ _ __:-3:.i,:5,::.::6;::.2IL.:.4.:..01.:..:;.6:::2:_ \n \n$ $ -3,625,411.58 \n \n5,359,621.65 -213,502.00 \n \n$ -3I625,411 .58 $ _ __:5::.L.1I:..:4.::;6,L.:.1..:.:19::.:;6:::.::5:... \n \n$ -3,396,491.02 $ \n29,239,307.76 \n \n1,583,718.03 195,626.04 \n \n \n$ 25,842,816.74 $ _.....1._,7=7='9,=34,..4=.0=7= \n \n EXHIBIT \"J\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nFEDERAL PROJECTS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n395,331.75 $ 2,343,193.14 $ 3,500,458.49 \n \n3,559,326.69 \n \n5,212,534.20 \n \n24,337,108.26 \n \n$ 8,618,849.75 \n \n8,618,849.75 \n \n6,520,629.82 \n \n750,496.82 \n \n2,296,257.11 \n \n2,063,552.31 \n \n \n$ 9,369,346.57 $ 3,954,658.44 $ 18,470,834.20 $ 36,421,748.88 \n \n$ \n \n855,761.99 $ \n \n855,761.99 $ \n \n4,955.06 \n \n$ \n \n38,620.00 \n \n185,219.25 \n \n595,392.21 18,209.26 \n104,828.47 76,922.25 78,666.31 \n2,712.68 \n \n595,392.21 18,209.26 \n143,448.47 76,922.25 \n263,885.56 2,712.68 \n \n14,960.35 118,995.34 20,644.30 60,946.94 11,611.17 20,387.50 \n \n101,664.00 2,051,689.96 \n \n113,107.00 5,473,710.96 \n16,031.09 \n \n496,927.50 15,709,384.67 \n30,201.09 \n \n2,179,862.53 32,478,971.41 \n \n$ \n \n2,377, 193.21 $ \n \n7,335,342.22 -$ \n \n- \n18,192,845.68 \n \n$ \n \n34,911,334.60 \n \n$ 6,992,153.36 $ -3,380,683.78 $ \n \n277,988.52 $ 1,510,414.28 \n \n$ 1,225,603.06 $ 6,585,224.71 $ 6,396,109.41 \n \n$ -2,983,862.52 \n \n-1,015,000.00 \n \n-7,837,776.10 \n \n-7,040,479.19 \n \n$ -2,983,862.52 $ \n \n210,603.06 $ -1,252,551.39 $ _ _-64:...:..:4.z.:,3:.:6.::.;9.\"'-78:... \n \n$ 4,008,290.84 $ -3,170,080.72 $ \n \n-974,562.87 $ \n \n866,044.50 \n \n11,661,921.38 \n \n1,573,337.06 \n \n42,670,192.24 \n \n41,804,147.74 \n \n-258,045.15 \n \n-258,045.15 \n \n$ 15,670,212.22 $ -1,854,788.81 $ _41,437,584.22 $ 42,670,192.24 \n \n- 35- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000 \n \nEXHIBIT \"K\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \nJUNE 30, 2000 JUNE 30, 1999 \n \n$ 17,377.73 $ \n \n11,830.00 $ \n \n29,207.73 $ \n \n10,793.51 \n \n731,507.78 \n \n3,927,963.75 \n \n4,659,471.53 \n \n4,593,789.60 \n \n \n57.51 \n \n57.51 \n \n1 788.74 \n \nTotal Assets \n \n$ 748,943.02 $ 3,939,793.75 $ 4,688,736.77 $ 4,606,371.85 \n \nFUND EQUITY \nFund Balances Reserved For Debt Service Unreserved Undesignated \n \n$ 748,943.02 $ 0.00 \n \n3,939,793.75 $ 4,688,736.77 $ 4,606,371.85 \n \n0.00 \n \n0.00 \n \n0.00 \n \nTotal Fund Equity \n \n \n$ 748,943.02 $ 3,939,793.75 $ 4,688,736.77 $ 4,606,371.85 \n \n \n \n \n \nSee notes to the general purpose financial statements. \n- 36 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"L\" \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \n \nDEBT SERVICE FUND \n \nYEAR ENDED JUNE 30, 2000 \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED \nJUNE 30, 2000 JUNE 30, 1999 \n \nREVENUES \n \nTaxes Other Funds \n \n$ 6,358.37 $ 8,306,143.14 $ 8,312,501.51 $ 8,285,729.23 \n \n41,706.20 _ _ ___;_;78:c;..2::.;0;;;.. \n \n41 784.40 \n \n38,532.80 \n \nTotal Revenues \n \n$ 48,064.57 $ 8,306,221.34 $ 8,354,285.91 $ 8,324,262.03 \n \nEXPENDITURES \nDebt Service Principal Interest Paying Agent Fees \n \n \n$ \n \n0.00 $ \n \n7,050,000.00 $ 7,050,000.00 $ 6,700,000.00 \n \n1,218,210.00 \n \n1,218,210.00 \n \n1,607,652.71 \n \n3,710.99 \n \n3,710.99 \n \n1 681.31 \n \nTotal Expenditures \n \n$ _ _--=0.-'-'00C.-- $ 8,271,920.99 $ 8,271,920.99 $ 8,309,334.02 \n \nExcess of Revenues over (under) Expenditures \n \n$ 48,064.57 $ \n \n34,300.35 $ \n \n82,364.92 $ \n \n14,928.01 \n \nFUND BALANCE JULY 1 \n \n700,878.45 \n \n3,905,493.40 \n \n4,606,371.85 \n \n4,591,443.84 \n \nFUND BALANCE JUNE 30 \n \n$ 748,943.02 $ 3,939,793.75 $ 4,688,736.77 $ 4,606,371.85 \n \n \nSee notes to the general purpose financial statements. \n \n- 37 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"M\" \n \nMILLS MEMORIAL STADIUM FUND \n \nASSETS \n \n \n \nCash and Cash Equivalents \n \nAccounts Receivable \n \nBALANCE \nJULY1,1999 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2000 \n \n-3,652.93 $ 3,652.93 \n \n45,339.43 $ 36,652.81 \n \n78,379.31 $ 3,612.93 \n \n-36,692.81 36,692.81 \n \nLIABILITIES \nFunds Held for Others \nSCHOOL ACTIVITY FUNDS ASSETS \nCash and Cash Equivalents \nLIABILITIES \nFunds Held for Others \n- \nTOTALS-AGENCY FUNDS ASSETS \nCash and Cash Equivalents Accounts Receivable \n \n$ \n \n0.00 $ \n \n81,992.24 $ \n \n81,992.24 $ \n \n--------- \n \n0.00 \n \n$ \n \n0.00 $ 81,992.24 $ 81,992.24 $ 0.00 --- ----------- -- \n \n---------- \n \n- - -------------- \n \n \n \n$ 495,372.22 $ 1,248,692.97 $ 1,363,191.45 $ 380,873.74 \n \n- - ------ ---- - \n \n-- - - - - - - - - - - - \n \n-------------- \n \n$ - \n \n- \n \n-4- \n \n9--5-, \n \n3 \n-- \n \n7 \n-- \n \n2.22 ---- \n \n$ 1,248,692.97 ------ --------- \n \n$ --1--,3-6-3-,-1-9-1-.4--5 \n \n$ \n \n380,873.74 \n \n-- -- -- - --- ------- \n \n \n \n$ 491,719.29 $ 1,294,032.40 $ 1,441,570.76 $ \n \n3,652.93 \n \n36,652.81 \n \n3,612.93 \n \n344,180.93 36,692.81 \n \n$ 495,372.22 $ 1,330,685.21 $ 1,445,183.69 $ _ _3_8...,0.,.8...,73_._74_ \n \nLIABILITIES \nFunds Held for Others \n \n$ 495,372.22 $ 1,330,685.21 $ 1,445,183.69 $ __3_a..,o..a..1..3,_..1..4_ \n \nSee notes to the general purpose financial statements. \n- 38 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \n \n* 10.553 * 10.555 \n \nTotal Child Nutrition Cluster \n \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Food Distribution Program ( 1) \n \n10.550 \n \nTotal U. S. Department of Agriculture \n \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \n \n94.004 \n \nEducation, U. S. Department of \n \nSpecial Education Cluster \n \nPass-Through From Georgia Department of Education \n \nIndividuals with Disabilities Education Act \n \nPart B - Special Education \n \nFlow Through \n \n* \n \nGeorgia Leaming Resources System \n \n* \n \nPreschool \n \n* \n \nSeverely Emotionally Disn.., bcJ \n \n* \n \nPart C - Special Education \n \nSpecial Education Capacity Building Improvement  \n \n84.027 84.027 84.173 84.027 \n \n84.173 \n \nTotal Special Education Cluster \n \nOther Programs \n \nDirect \n \nImpact Aid \n \n84.041 \n \nPass-Through From Chattahoochee-Flint Regional \n \nEducational Service Agency \n \nd/b/a Two Rivers Migrant Education Agency \n \nElementary and Secondary Education Act \n \nTitle I \n \nMigrant Education \n \n84.011 \n \nPass-Through From Georgia Department of Education \n \nComprehensive School Reform Demonstration Project \n \n84.332 \n \nElementary and Secondary Education Act \n \nTitle I Grants to Local Educational Agencies \n \n 84.010 \n \nTitle II Eisenhower Professional Development \n \n84.281 \n \nTitle 111 Technology Literacy Challenge Fund Grants \n \n84.318 \n \nTitle VI \n \nInnovative Education Program Strategies Class Size Reduction \n \n84.298 \n 84.340 \n \nIndividuals with Disabilities Education Act \n \nSpecial Education \n \nPart B \n \nState Program Improvement Grants for \n \nChildren with Disabilities \n \n84.323 \n \nGoals 2000 State and Local Education Systemic Improvement \n \nGrants \n \n84.276 \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nNIA \n \n$ 1,527,095.31 \n \n(2) \n \nNIA \n \n3,710,334.06 $ 7,832,852.01 (3) \n \n$ 5,237,429.37 $ 7,832,852.01 \n \nNIA \n \n312,384.96 \n \n312,384.96 \n \n$ 5,549,814.33 $ 8,145,236.97 \n \nNIA $ \n \n18144.23 $ \n \n18144.23 \n \nNIA \n \n$ 1,144,937.65 $ 1,144,937.65 \n \nN/A \n \n142,396.06 \n \n142,396.06 \n \nNIA \n \n134,572.00 \n \n134,572.00 \n \nNIA \n \n257,842.47 \n \n258,241.59 (3) \n \nNIA \n \n15,609.62 \n \n15,609.62 \n \n$ 1,695,357.80 $ 1,695,756.92 \n \n94,007.01 \n \n(4) \n \nN/A \nNIA \nNIA \nNIA \nNIA N/A \nNIA \n \nNIA \nN/A \n \n14,386.12 57,441.33 \n4,700,891.66 149,174.29 -1,976.75 172,342.13 678,087.00 \n \n18,111.53 (3) 61,915.90 (3) \n4,700,891.66 143,038.39 5,000.00 173,733.03 (3) 683,875.12 (3) \n \n10,379.00 49,535.54 \n \n5,598.97 49,535.54 \n \n-39- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"1\" \n \n \nFUNDING AGENCY PROGRAM/GRANT \nEducation, U.S. Department of Other Programs Pass-Through From Georgia Department of Education Safe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School Program Basic Grant \nTotal U. S. Department of Education \nFederal Emergency Management Agency Pass-Through From Office of the Governor Disaster Assistance \nHealth and Human Services, U.S. Department of Pass-Through From Georgia Department of Human Resources Child Care School Age Program Extended Day Program \nTotal U.S. Department of Health and Human Services \nLabor, U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Job Training Partnership Act \nOTHER FEDERAL ASSISTANCE \nDefense, U.S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marine Corps \n- R.O.T.C. Program \nTroops to Teachers \nTotal U.S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n84.186 84.196 \n84.048 \n 83.516 \n \nN/A $ 182,049.54 $ \n \nN/A \n \n22,992.00 \n \n182,049.54 22,992.00 \n \nN/A \n \n199,216.00 \n \n211,635.57 (3) \n \n$ 8,023,882.67 $ 7,954,134.17 \n \nNIA $ 5,212,534.20 $ 13,348,771.75 (3) \n \n93.525 93.037 \n \nN/A $ N/A \n$ \n \n20,000.00 $ 39,422.00 \n59,422.00 $ \n \n22,713.06 (3) 41,840.28 (3) \n64,553.34 \n \n17.250 \n \nNIA $ \n \n97,277.33 $ \n \n97,277.33 \n \n$ \n \n39,440.04 $ \n \n39,440.04 \n \n67,232.44 5,000.00 \n \n67,232.44 s,000.00 \n \n$ 111,672.48 $ _ _1\"-'1'-'1=,6\"'-'72=.4.;..;8;... \n \nTotal Federal Financial Assistance \n \n$ 19,072,747.24 $ 29,739,790.27 \n \nNIA= Not Available \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the \n2000 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \n(4) Funds earned on this program do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe Board did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \nSee notes to the general purpose financial statements. \n \n-40- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \nGRANTS \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nGeneral and Career Education Programs \n \nSpecial Education Programs \n \nRemedial Education Program \n \nMedia Center Programs \n \nStaff Development Programs \n \nIndirect Cost \n \nPupil Transportation \n \n \n \nRegular \n \nBus Replacement \n \nMiddle School Incentive Program \n \nSpecial Instructional Assistance \n \nIn-School Suspension \n \nMigrant Education \n \nCounselors Grades 4 and 5 \n \nTechnology Specialist \n \nLocal Five Mill Share \n \nEducational Equalization Formula \n \nFood Services \n \nVocational Education \n \nOther State Programs \n \nAlternative Program \n \nApprenticeship Program \n \nAt-Risk Summer School Program \n \nEnvironmental Science Program \n \nGeorgia Leaming Resources System \n \nHealth Insurance \n \nMentor Teacher Program \n \nPreschool Handicapped Program \n \nRemedial Summer School Program \n \nSeverely Emotionally Disturbed \n \nLottery Programs \n \nAssistive Technology \n \nComputers in the Classroom \n \n. \nGeorgia State Financing and Investment  Commission \nReimbursement on Construction Projects \n \n$ 40,484,789.00 6,889,173.00 1,454,231.00 1,726,655.00 446,627.00 9,935,680.00 \n \n1,510,511.00 480,419.00 \n1,244,890.00 752,047.00 356,383.00 6,154.00 177,495.00 201,897.00 \n-8,959,931.00 4,214,404.00 \n$ \n92,344.39 \n \n484,816.00 \n \n259,307.00 50,000.00 97,093.89 1,432.92 \n1,308,799.32 5,670.00 \n274,418.00 28,759.54 \n \n \n81,920.00 1,729,102.70 \n \n53,085.24 351,484.05 \n \n$ 40,484,789.00 6,889,173.00 1,454,231.00 1,726,655.00 446,627.00 9,935,680.00 \n1,510,511.00 480,419.00 \n1,244,890.00 752,047.00 356,383.00 6,154.00 177,495.00 201,897.00 \n-8,959,931.00 4,214,404.00 \n484,816.00 92,344.39 \n259,307.00 50,000.00 97,093.89 1,432.92 81,920.00 \n1,308,799.32 5,670.00 \n274,418.00 28,759.54 \n1,729,102.70 \n53,085.24 351,484.05 \n \n$ 1,812,154.67 \n \n \n1,812,154.67 \n \nOffice of the Governor Governor's Emergency Fund (1) Georgia Challenge Program \n \n35,000.00 \n \n531,038.47 \n \n531,038.47 35,000.00 \n \nOffice of School Readiness Pre-Kindergarten Program \n \n879,542.31 \n \n879,542.31 \n \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \n302,018.00 \n \n302,018.00 \n \nCONTRACTS Education, Georgia Department of Enrichment Program for Middle School-age Children Implementation of Department's Elementary School Foreign Language Model Program \n \n31,191.22 145,290.00 \n \n31,191.22 145,290.00 \n \n \n$ 63,517,748.28 $ 3,614,950.30 $ 2,343,193.14 $ 69,475,891.72 \n(1) The purpose of the funds is Capital Outlay - disaster relief. \n \nSee notes to the general purpose financial statements. \n \n-41 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nSCHEDULE \"3\" \n \nSCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nYEAR ENDED JUNE 30, 2000 \n' \n \nPROJECTS \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS \n \nThe repayment of principal and interest on \n \nthe School District\"s Series 1993 Bonds, \n \ncoming due January 1, 1998, and thereafter \n \nthrough their final maturity on January 1, 2001, \n \nthe maximum amount of debt to be retired \n \nnot to exceed $1,823,245,00 \n \n$ 1,823,245,00 $ \n \n1,823,245,00 $ \n \n459,285,00 $ \n \n897, 130,00 \n \nThe acquisition, construction and equipping of six new elementary physical education facilities, two new middle schools, supply services freezer, completion of expansion program at five schools, roof replacement \non 24 buildings, technology power upgrade on 30 buildings, ceilings and lights in 27 buildings, HVAC upgrades on 24 buildings, \nfour new high school field houses, three support facilities for new elementary schools, renovation of McIntosh Teacher Academy, renovation of five schools, Highland conversion, underslab plumbing replacement \nin 17 buildings, asbestos removal at 48 sites, \nlawn revitalization at 30 sites, facilities department shops, tower, media service \ncenter, security lighting at 28 sites, sports field lighting at four sites and 41 new vehicles, \nincluding the acquisition of all necessary property, the maximum cost of such projects \nnot to exceed $88,653,060,00 \n \n \n88,653,060.00 \n \n135,494,230.30 \n \n16,010,762.78 \n \n40,616,073.21 \n \n$ 90,476,305.00 $ 137,317,475.30 $ 16,470,047.78 $ 41,513,203.21 \n \n \n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the Board has incurred interest expense to provide advance funding for the above projects as follows: \n \nPrior Year \n \n$ 1,553,142.71 \n \nCurrent Year Total \n \n1,183,925.00 $ 2,737,067.71 \n \nSee notes to the general purpose financial statements. \n \n-42- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"4\" \n \n \nMinimum Expenditure Requirements (Total Allotment) \nExpenditures on Combined Program Basis \nSalaries Operations \nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \nExpenditures per Audit \n \nFOURTEEN WEIGHTED AND MEDIA CENTER \nPROGRAMS \n \n100% TEST FOR \nOPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \n \n$ \n \n50,554,848.00 $ _ _1\"\"\",3.;;..;7_;;;9=,2=8..;;.;6.c.;;..00.;;_ \n \n$ \n \n55,998,856.56 \n \n2I418I26070 $ _ ___;2;;,:_I0,;.;7_.;.7.:..14_.;.1.;_;7c.;.30.;_ \n \n$ \n \n58,417,117.26 \n \n-563,921.48 \n- \n$ _ _5_7__,_8_5_3.._1,_9_5._78_ \n \nAmount of Underexpenditure for Total Allotment \n- \n \n$ \n \n0.00 $ = = = = = =0.0=0 \n \n- \n \n \n- \n \nSee notes to the general purpose financial statements. \n- 43 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \n \nGENERAL AND CAREER EDUCATION PROGRAMS \nKindergarten (*) \nGrades 1 - 3 (*) \nSub-Total - K-3 \nGrades 4 - 5 (*) \nGrades 6 - 8 (*) \n \nGrades 9 - 12 (*) \nHigh School Laboratories (*) \nVocational Education Laboratories (*) \nTotal General and Career Education Programs \nSPECIAL EDUCATION PROGRAMS \nRegular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*) \nSub-Total - Regular \nCategory VI (Gifted) (*) \nTotal Special Education Programs \nREMEDIAL EDUCATION PROGRAM(*) \nTotal Fourteen Weighted Programs \nMEDIA CENTER PROGRAMS \nSalaries Operations \nTotal Media Center Programs \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF \n \nREQUIRED \n \nORIGINAL \n \n% \n \nORIGINAL \n \nMID-TERM \n \n$ 4,413,944.00 \n \n$ 3,972,549.60 $ \n \n0.00 \n \n12,357,011.00 \n \n11,121,309.90 \n \n$ 16,TT0,955.00 90 $ 15,093,859.50 $ \n \n0.00 \n \n5,290,810.00 90 \n \n4,761,729.00 \n \n8,470,968.00 90 \n \n7,623,871.20 \n \n5,628,825.00 90 \n \n5,065,942.50 \n \n2,609,348.00 90 \n \n2,348,413.20 \n \n1,713,883.00 90 \n \n1,542,494.70 \n \n$ 40,484,789.00 \n \n$ 36,436,310.10 $ -------\"0.-00- \n \n$ 6,168,637.00 \n \n$ 5,551,773.30 $ \n \n0.00 \n \n$ 6,168,637.00 90 $ 5,551,773.30 $ \n \n0.00 \n \n720,536.00 90 \n \n648,482.40 \n \n$ 6,889,173.00 \n \n- - - - - - $ 6,200,255.70 $ \n \n0.00 \n \n$ 1,454,231.00 90 $ 1,308,807.90 $ -------\"0.-00- \n \n$ 48,828, 193.00 \n \n------~ $ 43,945,373.70 $ \n \n0.00 \n \n$ 1,397,640.00 90 $ 1,257,876.00 $ \n \n0.00 \n \n329,015.00 100 \n \n329,015.00 \n \n$ 1,726,655.00 \n \n$ 1,586,891.00 $ - - - - - \"0-.0-0 \n \nTotal Fourteen Weighted and Media Center Programs \n \n$ - \n \n50,554,848.00 \n \n-- \n \n- - - - - - \n \n$ 45,532,264.70 $ \n \n0.00 \n \n-- - \n \n-- - - - - - - \n \nSTAFF DEVELOPMENT PROGRAMS \nCost of Instruction Professional Development \n \n$ \n \n145,046.00 \n \n$ \n \n145,046.00 $ \n \n0.00 \n \n301,581.00 \n \n301,581.00 \n \n0.00 \n \nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. \n \n$ \n \n446,627.00 100 $ \n \n446,627.00 \n \n$ \n-----~ \n \n0.00 \n \n- 44 - \n \n SCHEDULE \"5\" \n \nEDUCATION TOTAL \nREQUIRED \n \nACTUAL EXPENDITURES \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nAMOUNT OF UNDEREXPENDITURE \nFOR REQUIRED ALLOTMENT \n \n$ 3,972,549.60 $ \n \n5,337,285.52 $ \n \n65,700.89 $ 5,402,986.41 \n \n11,121,309.90 \n \n12,582,850.97 \n \n329,180.94 \n \n12,912,031.91 \n \n$ 15,093,859.50 $ 17,920,136.49 $ \n \n394,881.83 $ 18,315,018.32 $ \n \n0.00 \n \n4,761,729.00 \n \n6,038,990.68 \n \n211,851.63 \n \n6,250,842.31 \n \n0.00 \n \n7,623,871.20 \n \n9,340,144.53 \n \n389,793.98 \n \n9,729,938.51 \n \n0.00 \n \n5,065,942.50 \n \n7,004,908.33 \n \n563,359.28 \n \n7,568,267.61 \n \n0.00 \n \n2,348,413.20 \n \n2,220,924.29 \n \n181,254.47 \n \n2,402,178.76 \n \n0.00 \n \n1,542,494.70 \n \n2,630,833.80 \n \n140,916.48 \n \n2,771,750.28 \n \n0.00 \n \n$ 36,436,310.10 $ 45,155,938.12 $ 1,882,057.67 $ 47,037,995.79 \n \n$ 5,551,773.30 $ \n \n178,855.16 $ 2,238,501.51 3,173,148.73 \n335,763.38 27,083.42 \n \n5,576.96 $ 38,628.13 100,097.41 12,968.40 \n \n \n184,432.12 2,277,129.64 3,273,246.14 \n348,731.78 27,083.42 \n \n$ 5,551,773.30 $ \n \n5,953,352.20 $ \n \n157,270.90 $ 6,110,623.10 \n \n0.00 \n \n648,482.40 \n \n661,074.86 \n \n17,856.29 \n \n678,931.15 \n \n0.00 \n \n$ 6,200,255.70 $ 6,614,427.06 $ \n \n175,127.19 $ 6,789,554.25 \n \n \n$  1,308,807.90 $ \n \n2,278,758.30 $ \n \n20,232.44 $ 2,298,990.74 \n \n0.00 \n \n$ 43,945,373.70 $ 54,049,123.48 $ 2,077,417.30 $ 56,126,540.78 \n \n$ 1,257,876.00 $ \n \n1,949,733.08 \n \n$ 1,949,733.08 \n \n0.00 \n \n329,015.00 - - - - - - $ \n \n340,843.40 \n \n340,843.40 \n \n0.00 \n \n$ 1,586,891.00 $ \n \n1,949,733.08 $ \n \n340,843.40 $ 2,290,576.48 \n \n$ \n \n45,532,264.70 $ \n \n- \n \n5--5 \n \n,998,8 \n~- --- \n \n5 \n \n6. \n--- \n \n56 \n-- \n \n$ \n \n- - - - - - - = 2,418,260.70 $ 58,417,117.26 $ \n \n0.00 \n \n$ \n \n145,046.00 \n \n301,581.00 \n \n$ ==44=6=,6=2=7=.0=0 \n \n$ \n \n423,043.38 $ \n \n423,043.38 \n \n32,166.92 \n \n32,166.92 \n \n$ \n \n455,210.30 $ \n \n------ \n \n455,210.30 $ \n \n0.00 \n \n \n \n \n 45  \n \n  \n \n \nSECTION II C01\\.1PLIANCE AND INTERNAL CONTROL REPORTS \n \n RussELL W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nApril 4, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \n \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements ofDougherty County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated April 4, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete1mination offinancial s_tatement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and perfo11ning our audit, we considered Dougherty County Board of Education's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control \n2000YB-40 \n \n over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dougherty County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6471-00-02 and FS-6471-00-04. \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 no11nal course of perfo11ning 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, ofthe reportable conditions described above, we consider item FS-6471-0002 to be a material weakness. \nThis report is intended solely for the info11nation and use ofmanagement, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:gp 2000YB-40 \n \nsell W. Hinton State Auditor \n \n W. RussELL \n \nHINTON \n \nSTATE AUDITOR \n \n(404) 656-2174 \n \nf \n \n \n \n.-.::.- \n,l ... : \n \n.-~c \n \n. : \n \n\u003c \n \n(./': \n \ni\u003e : \n \n  .......   I 11 b \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \n \nApril 4, 2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Dougherty County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Dougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfu11n 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 Dougherty County Board of'Education's compliance with those requirements and perfo1111ing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete1n1ination on Dougherty County Board of Education's compliance with those requirements. \n2000SA-30 \n \n \n In our opinion, the Dougherty County Board ofEducation complied, in all material respects, with the \nrequirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. \n \nInternal Control Over Compliance \n \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and perfo11ning our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to \n \ndete11nine 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. \n \nWe noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect Dougherty County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6471-00-01 and FA-6471-00-02. \n \nA material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur.and not be detected within a timely period by employees in the no11nal course of perfo1111ing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be materiat weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \n \nThis report is intended solely for the info11nation and use ofmanagement, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \n \nRWH:gp \n2000SA-30 \n \nRespectfully submitted, \n \n~ ... , QQ t.v \nR ssell W. Hinton State Auditor \n \n  \nSECTION ill AUDfl'EB'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n \n \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \n6471-96-02 FS-6471-97-01 FS-6471-98-01 FS-6471-98-03 FS-6471-99-01 FS-6471-99-02  FS-6471-99-03 FS-64 71-99-04 FS-6471-99-05 FS-6471-99-06 FS-64 71-99-07 \n \nUnresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Salary Overpayment Amount: $34,114.60 Finding Control Number: 6471-96-02 \n \nThe overpayment has been turned over to the School system's lawyer and a note for the \n \n overpayment was received. $3,000.00 has been repaid on this account. \n \n. \n \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $11,251.07 Finding Control Number: FS-6471-98-01 \n. \nTo be resolved by future increase in QBE Local Five Mill Share. \n \nCASH AND CASH EQUNALENTS Inadequate Cash Procedures Finding Control Number: FS-6471-99-01 \n \nDuring fiscal year 2001, the Dougherty County School System is in the process of completing the reconciliation of all bank accounts and implementing new procedures to ensure that reconciliations are completed on a timely basis. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $25,956.39 Finding Control Number: FS-6471-99-02 \nTo be resolved by future increase in QBE Local Five Mill Share. \n \nGENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Finding Control Number: FS-6471-99-05 \nThe Dougherty County School System will implement procedures to ensure that salary and travel reports are accurate and properly reconciled to the general ledger prior to submission of the reports to the State. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-97-01 FA-6471-98-01 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \n-2- \n \n  \n \nSECTIONN FINDINGS AND QUESTIONED COSTS \n \n \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dougherty County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \n \n \nCash and Cash Equivalents General Ledger \n \nEmployee Compensation \n \nOf the reportable conditions described above, Cash and Cash Equivalents and General Ledger are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Maior Programs C The audit report for the Dougherty County Board of Education disclosed reportable conditions in internal control over major programs for the following compliance requirements. \n \nEligibility \n \nReporting \n \nNone ofthe reportable conditions described above is considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Dougherty County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \n \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through . 84.027 Individuals with Disabilities Education Act - Part B - Special Education Georgia Learning Resources System 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.027 Individuals with Disabilities Education Act - Part B - Special Education Severely Emotionally Disturbed 84.173 Individuals with Disabilities Education Act - Part C - Special Education Special Education Capacity Building Improvement 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction 83.516 Disaster Assistance \n \n8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs-was $635,382.44. \n \n9. Low Risk Auditee \n \n \n \n- \n \nThe Dougherty County Board of EducatiQn was audited as a low risk auditee based on a \n \nwaivergranted by the U.S. Department of Education. \n \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nBUDGET PREPARATION/EXECUTION \n \nDeficit Fund Balance \n \nNonmaterial Noncompliance \n \nFinding Control Number: FS-6471-00-01 \n \n \n \nAt June 30, 2000, the liabilities exceeded assets available for the Capital Projects - Federal Projects Fund by $1,854,788.81. 0.C.G.A. 20-2-67 (b) requires that the Superintendent submit to the Georgia Department of Education both a response to this condition and a corrective action plan designed to correct the budget deficit. The Board should establish budgetary procedures to ensure that funding is available prior to the Board committing to expenditures. \n \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6471-00-02 \nAccounting procedures of the Doughe.rty County Board of Education were insufficient to provide adequate internal controls over Cash and Cash Equivalents and General Ledger control categories as noted below: \nCash and Cash Equivalents \nBank statements for the operating, payroll and child nutrition accounts were not reconciled to the general ledger for any month of the fiscal year. Extensive procedures were perfo1med by the auditors to reconcile these accounts. Four hundred-fifty audit adjustments totaling $192,234.73 (net) were necessary to reconcile the accounting records with all bank statements. \nProcedures perfo11ned by the auditors to reconcile the bank statements to the general ledger at June 30, 2000, noted the following deficiencies: \n(1) Book errors were carried as reconciling items for extended periods of time. \n(2) An analysis of cash transfers between bank accounts disclosed transfers to incorrect bank accounts and transfers for incorrect amounts. \n(3) Numerous amount errors were made in recording deposits to the general ledger and some bank deposits were not recorded at all. \n(4) Numerous manual checks were issued which were not recorded in the general ledger. \nGeneral Ledger \n(1) Numerous posting errors in balance sheet, revenue and expenditure accounts were identified and corrected during the course of our work. \n(2) Journal entries were made without proper supporting documentation or explanation and without adequate supervisory review. \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6471-00-02 \n \nThese deficiencies occurred because ofmanagement's failure to establish procedures to analyze and reconcile balances on the general ledger with supporting records and management's failure to ensure journal entries made to the general ledger contained adequate supporting documentation and proper explanations. \n \nDeficiencies in the accounting procedures were discussed with the Superintendent. In addition, the accounting personnel ofthe Board were given instructions in proper accounting procedures which include the necessity ofpromptly reconciling bank statements, recording adjustments and deposits to \n \nthe accounting records, determining the status of issued checks and perforrning an administrative review ofall bank reconciliations. The Board should establish appropriate procedures to ensure that cash is posted, balanced and reviewed on a monthly basis and that detailed records supporting the general ledger are complete, accurate and reliable. In addition, procedures should be established to ensure journal entries are properly documented and adequately reviewed prior to posting to the general ledger. \n \nEXPENDITURES/LIABILI'J'I ES/DISBURSEMENTS \n \nDEForrn 0420 Not Supported by Accounting Records \n \n \n \nNonmaterial Noncompliance \n \nFinding Control Number: FS-6471-00-03 \n \nComparison of the Board's DE Forrn 0420 report (''General Fund QBE Program Expenditure Summary and Detail Reports'') to the accounting records revealed that twenty-six expenditure accounts reported on the DE Forrn 0420 w'ere not supported by the accounti.ng records. Procedures \n \nperformed by auditors reconciled five of these accounts to the accounting records, resulting in twenty-one accounts not supported by accounting records. Section II, Chapter 24, ofthe Financial Management for Georgia Local Units ofAdministration as published by the Georgia Department of Education requires that program expenditure controls in the accounting records agree with the DE Furm 0420 report. \n- \nThis condition occurred because management failed to reconcile amounts reported on DE Forni 0420 with the accounting records. Procedures should be established by the Board to ensure that expenditures reported on DE Furtn 0420 are reconciled to the accounting records prior to submission to the Georgia Department of Education. \n \n-4- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Leave Records Reportable Condition Amount: $5,156.11 Finding Control Number: FS-6471-00-04 \n \nA sample of forty employees' payroll records was selected and examined to test the accuracy of payroll records of the Dougherty County Board of Education. The following deficiencies were noted: \n \nSalary Overpayments/Underpayment \n \n(1) The Board overpaid employees in six instances amounting to $3,994.53. Overpayments occurred because the Board failed to deduct amounts for excess leave taken, made payments to employees subsequent to te11nination, made duplicate payments for work perfo1n1ed, failed to change pay rates as necessary and made general errors in calculation. \n \n(2) One employee was underpaid in the amount of$1,161.58. The underpayment was the result of a calculation error. \n \n \n \n \nInadequate Leave Records \n \n(1) Sick leave was accrued at an incorrect rate for eight employees. In addition, one employee, not eligible for leave based on the Board's sick and personal leave policies, accrued sick leave. \n \n(2) A review ofsupporting documentation for sick, personal and vacation leave identified the following deficiencies: \n \n(a) One employee was allowed to update their own leave history for leave taken. No evidence of supervisory review was available. \n \n(b) Timesheets and sick leave documentation provided for one employee did not support amounts posted to the leave records history. Twenty oftwenty-two days ofleave were posted to records nine to seventeen months after the leave was taken. (This employee was under the direct supervision of a parent.) \n \n(c) Personal leave taken by one employee exceeded the maximum amount allowed by the Board's sick and personal leave policies. \n \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Leave Records Reportable Condition Amount: $5,156.11 Finding Control Number: FS-6471-00-04 \nInadequate Leave Records \n(d) In two instances, the Leave Summary Reports that were used by payroll personnel to document excessive leave taken did not agree to the individual employee subsidiary detail. \nThese deficiencies occurred due to Board's failure to adequately monitor administrative procedures regarding sick, personal and vacation leave records. \n \nThe Board should implement procedures to ensure that all payroll disbursements are based on approved contracts, salary scales and time worked. In addition, leave records should be accurate and maintained in accordance with the Board's sick, personal and vacation leave policies. The Board should seek reimbursement for the overpayments for deposit to the Board's General Fund and should issue a check to the underpaid employee. \nGENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled \n \nNonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6471-00-05 \nThe detailed listings of salary and travel payments made to employees as submitted by the Board to the Georgia Department ofAudits was not reconciled with the general ledger as presented for audit. Unidentified variances totaling $63,545.72 and $34,616.53 for salaries and travel respectively could not be identified. \nThis condition occurred because management did not reconcile amounts submitted to Georgia Department ofAudits to the Board's general ledger. Procedures should be established by the Board to ensure that the detailed listing ofsalary and travel is reconciled to the accounting records prior to submission to the Georgia Department of Audits. \n-6- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-00-01 \n \nFor the 2000 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies (CFDA 84.010) Program, the Board could not provide accurate documentation to support section IV of the Title I application pertaining to the dete11nination of eligible and participating attendance areas and school allocations. As provided for in the grant application and required by 34 CFR 76.730, the Board assured the Georgia Department ofEducation that it will keep records and provide inforrnation as may be required for audit purposes. \n \nThis condition was a result ofthe Board's failure to maintain appropriate documentation ofthe grant application. The Board should establish procedures to ensure that applications are complete, accurate and that proper documentation is maintained in compliance with the requirements of the grant application and 34 CFR 76.730. Also, the Georgia Department of Education should review this matter to dete11nine if a reclaim of funds is appropriate. \n \nREPORTING \n \n \n \nFailure to File Accurate Completion Reports \n \nReportable Condition \n \nU.S. Department of Education \n \nThrough Georgia Department of Education \n \nFinding Control Number: FA-6471-00-02 \n \nA review ofthe Board's accounting records revealed that completion reports were not supported by expenditure records for the following programs: \n \nActual Program Expenditures per Expenditures Completion Report \n \nSpecial Education Cluster Individuals with Disabilities Education Act Part B - Special Education Flow Through (CFDA 84.027) \nElementary and Secondary Education Act Title I Grants to Local Educational Agencies (CFDA 84.010) \n \n$ 1,144,937.65 \n \n$ 4,700,891.66 \n \n$1,291,189.00 $ 5,438,955.52 \n \n-7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS REPORTING Failure to File Accurate Completion Reports Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-00-02 These variances occurred because management reported expenditures outside of the grant period. Upon completion ofaudit procedures, the Board submitted accurate completion reports and returned funds as appropriate to the Georgia Department ofEducation. Procedures should be established by the Board to ensure that completion reports are supported by the expenditure records, as required. \n \n-8- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b1997-h98","title":"Audit report, Dougherty County Board of Education, Albany, Georgia, year ended June 30, 1998","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Dougherty County, 31.53337, -84.21625"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["1998-06-30"],"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: Dougherty County Board of Education, Albany, Georgia, schedule of salaries and travel fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Dougherty County Board of Education, Ga.), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 23, 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":["Auditors' reports--Georgia","Financial statements--Georgia","Dougherty County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Audit report, Dougherty County Board of Education, Albany, Georgia, year ended June 30, 1998"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b1997-h98"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b1997-h98"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"trf\\ \nA~ao \nIftl t=U \n1\u003e7 I ~ql-qg \nAUDIT REPORT DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA YEAR ENDED JUNE 30, 1998 \nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \n254 WASHINGTON STREET \nATLANTA, GEORGIA 30334-8400 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXlllBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUPS \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n6 \n \nC \n \nCOMBINED sTAtEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n9 \n \nD \n \nSTATEMENT OF REVENUES, EXPENSES AND \n \nCHANGES IN RETAINED EARNINGS \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \n10 \n \nE \n \nSTATEMENT OF CASH FLOWS \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \n11 \n \nF NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n13. \n \nADDITIONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n28 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n30 \n \nCAPITAL PROJECTS FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n32 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n34 \n \nDEBT SERVICE FUND \n \nK \n \nCOMBINING BALANCE SHEET \n \n36' \n \nL \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n37 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nEXHIBITS \n \nCOMBINING STATEMENTS \n \nM \n \nFIDUCIARY FUND TYPE \n \nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUNDS \n \n38 \n \nSCHEDULES \n \nI SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n39 \n \n2 SCHEDULE OF STATE REVENUE \n \n42 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n43 \n \n4 SCHEDULE OF EXPENDITURES \n \nLOTTERY PROGRAMS \n \n44 \n \nANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \n \n5 \n \nOVERALL \n \n45 \n \n6 \n \nBY PROGRAM \n \n46 \n \nSECTIONll \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 \n \nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 26, 1999 \n \nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Dougherty County Board ofEducation \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements of the Dougherty County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Dougherty County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \nWe conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates'made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \nAs described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n* The General Fixed Assets Account Group reported in the general ledger has not been reconciled to \ndetailed subsidiary records maintained by the Board. The discrepancies have notbeen identified but are believed to be material to the general purpose financial statements. \n98ARL-13AX \n \n * The school activity accounts reported in the general purpose financial statements do not accurately \nreflect the revenues, expenditures and changes in fund balances for all school activity accounts. To conform to generally accepted accounting principles, all accounts should be recorded in the general purpose financial statements. \n* The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion ofsalaries \nand the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department ofEducation for the State's share ofthese 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, 1997, were improperly recorded in the year ended June 30, 1998. 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. \n* Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year 2000 \nIssues, requires disclosure of certain matters regarding the year 2000 issue in order for fmancial statements to be prepared in conformity with generally accepted accounting principles. Such required disclosures include: \no Any significant amount of resources committed to make computer systems and other electronic \nequipment year 2000 compliant; \no A general description of the year 2000 issue, including a description of the stages of work in \nprocess or completed as of the end of the reporting period to make computer systems and other electronic equipment critical to conducting operations year 2000 compliant. \no The additional stages of work necessary for making the computer systems and other electronic \nequipment year 2000 compliant. \nDougherty County Board ofEducation has omitted such disclosures. We do not provide assurance that Dougherty County Board of Education is or will be year 2000 ready, that Dougherty County Board of Education's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Dougherty County Board ofEducation does business will be year 2000 ready. \nThe aggregate effects on the general purpose financial statements of these variances or omissions have not beendetermined, but are believed to be material. \nIn our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly. in all material respects, the financial position ofthe Dougherty County Board ofEducation as ofJune 30, 1998, and the results of its operations and the cash flows of its proprietary fund for the year then ended, in conformity with generally accepted accounting principles. \n98ARL-13AX \n \n In'accordance with Government Auditing Standards, we have also issued our report dated March 26, ,1999, on our consideration ofthe Dougherty County Board ofEducation's internal control over fmancial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants. \nOur audit was performed for the purpose of forming an opinion on the general purpose fmancial statements of the Dougherty County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through M) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits olStates, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24. \nRespectfully submitted, \n \nRWH:gp 98ARL-13AX \n \nRussell W. Hinton State Auditor \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,1998 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nPrepaid Items \nInventories Consumable Supplies Food Donated Commodities Purchased Food \nGeneral Fixed Assets Land Buildings Equipment \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt \nTotal Assets \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nDEBT SERVICE \nFUND \n \n$ 1,874,865.60 $ 264,387.96 $ \n \n1,744.86 $ \n \n16,691.55 \n \n10,109,272.85 \n \n707,672.89 \n \n38,304,338.12 \n \n4,564,8n.31 \n \n784,885.86 \n \n1,805,992.84 \n \n5,480,225.13 \n \n9,874.98 \n \n192,704.68 \n \n217,713.25 \n \n18,888.81 \n253,451.82 215,048.10 \n \n$ 13,179,442.24 $ 3,265,442.42 $ 43?86,308.11 $ 4,591,443.84 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -2- \n \n EXHIBIT \"A\" \n \nPROPRIETARY FUND TYPE INTERNAL \nSERVICE FUND \n \nFIDUCIARY FUND TYPE AGENCY FUNDS \n \n$ \n \n29,159.06 $ \n \n421,947.40 \n \n1,683,645.17 \n \nACCOUNT GROUPS \n \nGENERAL \n \nGENERAL \n \nFIXED \n \nLONG-TERM \n \nASSETS \n \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30,1998 \n \nJUNE 30,1997 \n \n$ 2,608,796.43 $ 3,504,322.91 \n \n55,369,806.34 \n \n15,341,621.15 \n \n8,080,978.81 \n \n2,747,079.80 \n \n192,704.68 \n \n100,603.85 \n \n236,602.06 \n253,451.82 215,048.10 \n \n274,042.99 \n148,290.11 237,477.33 \n \n$ 6,198,305.26 121,042,002.34 24,080,754.79 \n$ \n \n4,591,443.84 \n \n6,198,305.26 121,042,002.34 \n24,080,754.79 \n4,591,443.84 \n \n6,030,715.76 117,274,307.01 \n22,396,121.89 \n483,735.00 \n \n31.688,556.16 \n \n31.688.556.16 \n \n1,166,265.00 \n \n$ 1,712,804.23 $ \n \n421,947.40 $ 151,321,062.39 $ . 36,280,000.00 $ 254,558,450.63 $ 169,704,582.80 \n \n-3- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,1998 \n \nLIABILITIES AND FUND EQUITY \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nDEBT SERVICE \nFUND \n \nLIABILITIES \n \nCash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable \n \n$ \n \n23,939,20 $ 290,080.09 \n \n92,220,86 \n \n1,217,795,38 \n \n5,000,000,00 \n \n38,996.02 \n \n240,418,03 \n \n1,885.00 \n \n$ 1,710,833,52 \n271,326.85 \n \nTotal Liabilities \n \n$ 5,157,041,08 $ 1,748,293,50 $ 1,982,160.37 \n \nFUND EQUITY \n \nInvestment in General Fixed Assets \n \nRetained Eamings \n \nFund Balances \n \nReserved \n \nFor Bus Replacement Funds \n \n$ \n \nFor Continuation of Federal Programs .. \n \nFor Debt Service \n \nFor Expired Grant Balances/Questioned Costs \n \nFor Flood Recovery \n \nFor Inventories \n \nConsumable Supplies \n \nFood \n \nDonated Commodities \n \nPurchased Food \n \nFor Purpose of Bond Issue \n \nFor SPLOST Projects \n \nFor State Capital Outlay Projects \n \nUnreserved \n \nDesignated for Self-Insurance \n \nUndesignated \n \nTotal Fund Equity \n \n$ \n \n155,781.39 \n$ \n94,316,40 \n \n12,504,60 \n$ \n \n$ \n200,619.51 \n \n217,713.25 \n \n18,888,81 \n \n253,451,82 215,048,10 \n \n34,220,384,97 5,797,618,69 1,585,524.57 \n \n1,696,950,01 5,857,640,11 \n \n1,017,255.59 \n \n0,00 \n \n8,022,401,16 $ 1,517,148,92 $ 41,804,147.74 $ \n \n4,591,443.84 \n0.00 4,591,443,84 \n \nTotal Liabilities and Fund Equity \n \n$ 13,179,442,24 $ 3,265,442.42 $ 43,786,308,11 $ 4,591,443.84 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -4- \n \n EXHIBITUA\" \n \nPROPRIETARY FUND TYPE INTERNAL \nSERVICE FUND \n \nFIDUCIARY FUND TYPE AGENCY FUNDS \n \nACCOUNT GROUPS \n \nGENERAL \n \nGENERAL \n \nFIXED \n \nLONG-TERM \n \nASSETS \n \nDEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30,1998 \n \nJUNE 30,1997 \n \n$ \n \n280,181.67 \n \n$ \n \n421,947.40 \n \n$ \n \n280,181.67 $ \n \n421,947.40 \n \n$ \n \n$ \n \n314,019.29 \n \n1,310,016.24 \n \n. 5,000,000.00 \n \n279,414.05 \n \n280,181.67 \n \n1,710,833.52 \n \n271,326.85 \n \n1,885.00 \n \n421,947.40 \n \n$ 36,280,000.00 \n \n36,280,000.00 \n \n1,709,860.95 250,651.31 \n1,112,196.45 5,000,000.00 \n59,989.38 205,666.99 206,606.10 \n27,055.40 3,265.00 \n289,536.72 1,650,000.00 \n \n$ 36,280,000.00 $ 45,869,624.02 $ 10,514,828.30 \n \n$ 1,432,622.56 \n0.00 $ 1,432,622.56 \n \n$ 151,321,062.39 \n0.00 $ 151,321,062.39 \n \n$ 151,321,062.39 $ 145,701,144.66 \n \n1,432,622.56 \n \n1,646,n3.53 \n \n155;781.39 12,504.60 \n. 4,591,443.84 94,316.40 \n200,619.51 \n \n54,564.33 483,735.00 112,158.71 1,516,561.90 \n \n236,602.06 \n \n274,042.99 \n \n253,451.82 215,048.10 34,220,384.97 5,797,618.69 1,585,524.57 \n \n148,290.11 \n237,4n.33 \n1,810,686.75 \n \n1,696,950.01 6,874,895.70 \n \n1,625,571.98 5,578,747.21 \n \n$ 208,688,826.61 $ 159,189,754.50 \n \n$ 1,712,804.23 $ \n \n421,947.40 $ 151,321,062.39 $ 36,280,000.00 $ 254,558,450.63 $ 169,704,582.80 \n \n-5- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAl FUND TYPES YEAR ENDED JUNE 30, 1998 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess ofRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nAccrued Interest on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Premium on Bonds Sold Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \n \nGENERAl FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 61 ,146,575,22 $ 3,490,756.06 \n \n931,010,71 \n \n12,248,023.16 \n \n25,405,328.69 \n \n1,788,725.95 \n \n2,200,223,22 \n \n$ 89,271,640.57 $ 17,939,002,44 \n \n$ 55,639,132.54 $ \n4,558,150,10 2,497,972,83 2,403,731,16 1,452,551.93 6,008,159.27 1,577,240,58 7,772,794,47 \n~,743.346,34 \n1,417,017,64 255,411.79 12,362.75 324,516,31 66,749,29 64,601,78 \n \n6,967,522.03 \n873,123.03 884,879.30 \n51,307.26 409,431,93 \n16,545.90 \n127,945,32 63,246,19 \n1,114,131.69 6,934,339,41 \n246,953.10 \n6,907.10 \n \n$ 87,793,738,78 $ 17,696,332.26 \n \n$ 1,477,901.79 $ \n \n242,670.18 \n \n$ $ -397,306.90 \n$ -397.306,90 $ \n \n189,890.75 189,890,75 \n \n$ 1,080,594.89 $ \n \n432,560,93 \n \n6,941,806,27 \n \n1,084,587.99 \n \nFUND BALANCE JUNE 30 \n \n$. 8,022,401.16 $ 1,517,148,92 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -6- \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS (Memorandum Only) \nYEAR ENDED JUNE 30,1998 JUNE 30,1997 \n \n$ \n \n571,616.96 \n \n3,908,832.16 \n \n6,425,900.91 $ \n \n760,714.83 \n \n.$ 11,667,064.86 $ \n \n$ \n4,426,936.20 29,230.32 \n \n65,208,948.24 $ 17,087,866.03 36,258,165.80 4,778,894.32 \n \n62,746,973.74 17,763,879.47 26,530,318.13 3,624,112.48 \n \n4,456,166.52 $ 123,333,874.39 $ 110,665,283.82 \n \n$ \n \n2,666.70 \n \n$ 62,609,321.27 $ 63,113,312.83 \n \n627,990.68 292,449.77 \n25,871.72 54,899.52 \n3.85 \n7,723,676.33 \n \n5,431,273.13 3,382,852.13 2,455,038.42 2,489,974.54 6,317,154.94 1,603,112.30 7,955,639.31 3,806,592.53 1,417,017.64 1,369,547.33 6,946,702.16 \n571,469.41 66,749.29 \n7,795,185.21 \n \n4,729,320.05 3,570,487.72 2,435,742.90 2,240,452.63 6,097,723.01 1,440,795.91 8,212,006.34 4,018,558.93 1,466,636.72 1,092,608.62 7,217,026.22 \n488,867.56 46,272.15 \n3,518,498.37 \n \n$ \n \n370,000.00 \n \n72,620.00 \n \n678.34 \n \n370,000.00 72,620.00 678.34 \n \n350,000.00 88,830.00 656.85 \n \n$ 8,727,558.57 $ \n \n443,298.34 $ 114,660,927.95 $ 110,127,796.81 \n \n$ 2,939,506.29 $ 4,012,868.18 $ 8,672,946.44 $ \n \n537,487.01 \n \n$ $ 35,000,000.00 \n325,518.25 207,416.15 \n$ 35,532,934.40 $ \n \n94,840.66 $ \n \n94,840.66 \n \n35,000,000.00 325,518.25 397,306.90 $ -397,306.90 \n \n94,840.66 $ 35,420,358.91 $ \n \n598,520.63 -598,520.63 \n0.00 \n \n$ 38,472,440.69 $ 3,331,707.05 \n \n4,107,708.84 $ 44,093,305.35 $ \n \n537,487.01 \n \n483,735.00 \n \n11 ,841,836.31 \n \n11,304,349.30 \n \n$ 41,804,147.74 $ 4,591,443.84 $ 55,935,141.66 $ 11,841,836.31 \n \n-7- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - lNON-GAAP BASIS\u003e GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 1998 \n \nEXHIBIT\"C\" \n \nThe notes to the general purpose financial statements are an integral part of this statement. -9- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n. EXHIBIT \"0\" \n \nSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS \n \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND \n \nYEAR ENDED JUNE 30, 1998 \n \nOPERATING REVENUES Charges for Services \nOPERATING EXPENSES Current Support Services Central Support Services Operating Income (Loss) \nNONOPERATING REVENUES Interest Earned Total Income (Loss) \nRETAINED EARNINGS JULY 1 \nRETAINED EARNINGS JUNE 30 \n \nPROPRIETARY FUND TYPE SELFINSURANCE FUND \n \nTOTALS. (Memorandum Only) \nYEAR ENDED \nJUNE 30,1998 JUNE 30, 1997 \n \n$ 255,950,63 $ 255,950,63 $ 297,047.73 \n \n$ 578,049,09 $ 578,049,09 $ 546,521,12 $ -322,098.46 $ -322,098.46 $ -249,473,39 \n \n$ 107,947.49 $ 107,947.49 $ 109,121,26 \n \n$ -214,150,97 $ -214,150,97 $ -140,352.13 \n \n1,646,773,53 \n \n1,646,773,53 \n \n1,787,125,66 \n \n$ 1,432,622,56 $ 1,432,622,56 $ 1,646,773,53 \n \nThe notes to the general purpose financial statements are an integral part of this statement. \n- 10- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS \nPROPRIETARY FUND TYPE - INTERNAL SERVICE FUND YEAR ENDED JUNE 30, 1998 \n \nEXHIBIT\"E\" \n \nCash Flows from Operating Activities: Cash Received from Charges for Services Cash Paid for Administration of Fund Cash Paid for Worker's Compensation Claims \nNet Cash Provided (Used) by Operating Activities \nCash Flows from Investing Activities: Interest Received on Investments Cash Received from Redemption of Investment \nNet Cash Provided by Investment Activities \nNet Increase (Decrease) in Cash \nCash and Cash Equivalents - July 1 \n \nPROPRIETARY FUND TYPE SELFINSURANCE FUND \n \nTOTALS (Memorandum Only) \nJUNE 30, 1998 JUNE 30, 1997 \n \n$ 255,950.63 $ 255,950.63 $ 297,797.73 \n \n-103,042.92 \n \n-103,042.92 \n \n-135,201.97 \n \n-368,233.49 \n \n-368,233.49 \n \n-411,925.16 \n \n$ -215,325.78 $ -215,325,78 $ -249,329.40 \n \n$ \n \n963.14 $ \n \n963.14 $ \n \n957.13 \n \n180,000.00 \n \n180,000.00 \n \n220,000.00 \n \n$ 180,963.14 $ 180,963,14 $ 220,957.13 \n \n$ \n \n-34,362.64 $ \n \n-34,362.64 $ \n \n-28,372.27 \n \n$ . 63,521.70 $ \n \n63,521.70 $ \n \n91,893.97 \n \nCash and Cash Equivalents - June 30 \n \n$ \n \n29,159.06$ \n \n29,159.06 $ ===6=3.:=,5=21=.7=0,= \n \nReconciliation of Operating Income to Net \n \nCash Provided (Used) by Operating \n \nActivities: \n \n. \n \nOperating Income (Loss) \n \nDecrease in Accounts Receivable \n \nIncrease in Claims Payable \n \nDecrease in Prepaid Items \n \n$ -322,098.46 $ -322,098.46 $ -249,473.39 . \n \n750,00 \n \n74,514.68 \n \n74,514.68 \n \n-7,170.01 \n \n32,258.00 \n \n32,258.00 \n \n6,564.00 \n \nNet Cash Provided (Used) by Operating Activities \n \n$ -215,325.78 $ -215,325.78 $ -249,329.40 \n \nThe notes to the general purpose financial statements are an integral part of this statement. - 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXlllBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Dougherty County 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 organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe Board uses funds and account groups 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 fmancial 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. \nThe school activity accounts reported in the general purpose financial statements do not accurately reflect the revenues, expenditures and changes in fund balances for all school activity accounts. To conform to generally accepted accounting principles, all accounts .should be recorded in the general purpose fmancial statements. \nThe general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account groups presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources of the 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. \nSPECIAL REVENUE FUND - the fund used to account for the proceed~ of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for fmancial resources to be used for the acquisition or construction of major capital facilities. \n \n- 13- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nDEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees. \nPROPRIETARY FUND TYPE - the fund used to account for activities ofthe Board similar to those found \nin the private sector, where cost recovery and the determination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type of proprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the Board. \nSelf-Insurance Fund - the internal service fund used to account for the Board's Worker's Compensation \nrisk financing and insurance related activities. \nFIDUCIARY FUND TYPE - the funds used to account for assets held by a government unit in a trustee \ncapacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: \nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUPS \nGENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the Board. \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current fmancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \n \n- 14- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXillBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 . \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBUDGET \nThe Dougherty County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The proprietary fund budget was prepared and utilized as a management tool to assess the operations ofthe internal service fund. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \nThe -budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws 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. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n \n- 16- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nAll proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. \n \nAgency funds are purely custodial in nature and do not involve measurement of results of operations. \n \nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \n \nRevenues are recognized when susceptible to accrual (Le., when they become both measurable and available). \"Measurable\" means the amount ofthe transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \n \nExpenditures are generally recognized when the related fund liability is incurred. \n \nA departure from the above definitions is the accounting treatment afforded the final two payments on \n \nGeneral Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department \n \nof Education for the State's share of these contracts. During fiscal year 1998, a substantial number of \n \npersonnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 \n \nand ending in early June 1998. Personnel contracts for this employment period specify that compensation \n \nbe paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State \n \ngrants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education \n \nto the Board in the same twelve months. As of June 30, 1998, compensation under these employment \n \n:-. contracts had been earned, but two of tIie twelve monthly payments, due for July and August 1998, had not \n \nbeen made. Payments for these two months were made and recorded as expenditures by the Board subsequent \n \nto June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received \n \nand recorded as revenue in the fiscal year subsequent to June 30~ 1998. Conversely, the similar expenditures \n \nand related 'revenues for contractual-services completed prior to June 30, 1997, were recorded in the year \n \nended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when \n \navailable and measUrable and that expenditures be recorded when incurred, rather than when funds are \n \nreceived or disbursed. . \n \n- \n \nThe accrual basis of accounting, as required by generally accepted accounting principles, is utiliied by proprietary funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. - \n \nAgency funds are accounted for using the modified accrual basis of accounting in recogniziD.g assets and liabilities. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXIllBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 3D. 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nAll proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. \n \nAgency funds are purely custodial in nature and do not involve measurement ofresults of operations. \n \nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \n \nRevenues are recognized when susceptible to accrual (Le., when they become both measurable and available). \"Measurable\" means the amount ofthe transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \n \nExpenditures are generally recognized when the related fund) liability is incurred. \n \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment :-. contracts had been earned, but two oftlie twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related \"revenues for contractual-services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. . \n \nThe accrual basis of accounting, as required by generally accepted accounting principles, is utiliied by \n \nproprietary funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses \n \nare recorded at the time liabilities are incurred. \n \n, \n \nAgency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 . \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBUDGET \nThe Dougherty County 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 of the 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 proprietary fund budget was prepared and utilized as a management tool to assess the operations ofthe internal service fund. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \nThe -budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This fmal budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized fmancial institutions. Georgia Laws 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. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n \n- 16- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose fmancial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dougherty County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on October 20, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Dougherty County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.1% of taxes collected as a fee for tax collection and reJl1its the balance of taxes collected to the Board. \n \nTax millage rates levied for the 1997 tax year (calendar year) for the Dougherty County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n17.70 mills \n---.JQ mills \n \n18.06 mills \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSALES TAXES \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax collected by the State and remitted to the Board during the fiscal year amounted to $10,089,576.42 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $80,386,728.58 has been collected or on September 30,2002 whichever occurs first. \nINVENTORIES \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (weighted average). The Board uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and \nexpenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when \npurchased and expenditures are recorded as the inventory items are used. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \nSUPPLIES INVENTORIES Inventories of consumable supplies are reported on the Combined Balance Sheet at cost (weighted average). The Board uses the consumption method to account for the inventory whereby purchases are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventory reported on the balance sheet is equally offset by a reservation of fund balance which indicates that it is not available for discretionary expenditures even though.it is a component of net current assets. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit periods subsequent to June 30, 1998, are recorded as prepaid items. \nGENERAL FIXED ASSETS \nGeneral fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. All purchased general fixe.d assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the\" assets is not capitalized. Infrastructure assets are not capitalized by the Board. \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTESTO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe general fixed assets reported in the general ledger have not been reconciled to detailed subsidiary records maintained by the Board. The discrepancies have not been identified but are believed to be material to the general purpose financial statements. \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements. \nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Tenn Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial s.tatements. \nGENERAL OBLIGATION BONDS \nThe Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obIlgations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Tenn Debt Account Group. \nFUND BALANCES RESERVED \nReserves represent those portions of fund equity that are legally segregated for a specific future use. \nReserved for Flood Recovery - This reserve constitutes the unexpended balance of Federal, State and Local Matching Funds designated for flood recovery activities. \nINTERFUND TRANSACTIONS \nThe Board has the following types of interfund transactions: \nReimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions. of expenditures/expenses in the fund that is reimbursed. \n \n- 19- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n. Operating 'transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY - TOTAL COLUMNS \nTotal columns on the general purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, \nresults of operations or cash flows In conformity with generally accepted accounting principles. Neither are \nsuch data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \nNote 2: DEPOSITS AND INVESTMENTS \nCOLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists ofanyone of or any combination ofthe following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, . \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, \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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n- 20- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $7,461,831.61. The amounts of the total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities \n \nheld by the Board or by the Board's agent in the Board's name. \n \n. \n \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust \n \ndepartment or agent in the Board's name. \n \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with \n \nsecurities held by the pledging financial institution, or by its trust department or agent but \n \nnot in the Board's name.) \n \nThe Board's deposits are classified by risk category at June 30, 1998, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 595,285.62 \n \n2 \n \n6,851,663.84 \n \n3 \n \n14,882.15 \n \nTotal \n \n$ 7.461.831.61 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 1998, the carrying value ofthe Board's total investments was $55,369,806.34 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 ofTreasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PuRPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nbe a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist offunds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds ofthe State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1998 was 29 days. The average investment duration for Fund 6 on June 30,1998 was .96 years. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: GENERAL FIXED ASSETS \n \nThe follQwing is a summary of changes in the General Fixed Assets Account Group during the fiscal year: \n \nBalance July 1, 1997 Additions Deletions Unlocated Variance Balance June 30, 1998 \n \nLand \n \nBuildings \n \nEauipment \n \nTotal \n \n$ 6,030,715.76 $117,274,307.01 $22,396,121.89 $145,701,144.66 \n \n186,821.06 4,577,685.07 1,719,254.84 6,483,760.97 \n \n-182,731.78 \n \n-182,731.78 \n \n-19.231.56 \n \n-809.989.74 \n \n148.109.84 \n \n-681,111.46 \n \n$ 6.198.305.26 $121.042,002.34 $24.080,754.79 $151.321.062.39 \n \nNote 5: RISK MANAGEMENT \n \nThe Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \n- 22- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 5: RISK MANAGEMENT \n \nFor the 1995 fiscal year, a natural disaster claim (flood damage) filed by the Board exceeded commercial insurance coverage by $26,182,299.32. Federal Emergency Management Agency (FEMA) funds in the amount of$18,055,955.00 have been awarded to the Board through June 30, 1998. The remainder ofthe loss will be absorbed by the Board to the extent they are not funded by subsequent awards from FEMA. \n \nThe Board participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994 to develop and administer a plan to reduce risk of loss on account ofgeneral liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe Board has established a limited risk management program for workers' compensation claims. A premium \n \nis charged when needed by the Internal Service Fund to each user fund on the basis of the percentage of that \n \nfund's payroll to total payroll in order to cover estimated claims budgeted by manageII1;ent based on known \n \nclaims and prior experience. The Board accounts for claims with expense and liability being reported when \n \nit is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess \n \ncoverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the \n \nstatutory limit. \n \n. \n \nChanges in the workers' compensation claims liability during the last two fiscal-years are as follows: \n \n1997 1998 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \n$ 212,837.00 $ 404,755.15 $ $ 205,666.99 $ 442,748.17 $ \n \nClaims Paid \n \nEnd ofYear Liability \n \n411,925.16 $ 368,233.49 $ \n \n205,666.99 280,181.67 \n \nThe Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts f~r claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 5: RISK MANAGEMENT \n \n1997 1998 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \n$ \n \n3,282.00 $ 21.209.00 $ \n \n$ \n \n0.00 $ 21.559.00 $ \n \nClaims Paid \n \nEnd ofYear Liability \n \n24.491.00 $ \n \n0.00 \n \n21.559.00 $ \n \n0.00 \n \nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ 50,000.00 $ 250,000.00 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Refunding - Series 1992 General Government - Series 1998 \n \n3.25% - 5.20% 3.55% - 4.10% \n \n$ 1,280,000.00 35,000,000.00 \n \n$36,280,000.00 The changes in Gen~ral Long-Term Debt during the fiscal year ended June 30, 1998, were as follows: . \n \nGeneral Obligation \nBonds \n \nBalance July 1, 1997 \n \n$ 1,650,000.00 \n \nAdditions \n \n35,000,000.00 \n \nDeductions \n \n370,000.00 \n \nBalance June 30, 1998 \n \n$36.280,000.00 \n \nAt June 30, 1998, payments due by fiscal year which includes principal and.interest for these items are as follows: \n \n- 24- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n1999 2000 2001 2002 2003 \nTotal Principal and Interest \nNote 7: ON-BEHALFPAYMENTS \n \nGeneral Obligation \nBonds \n$ 8,317,252.71 8,278,835.00 8,355,622.50 7,942,712.50 7,988,381.25 \n$40,882,803.96 \n \nThe Board has recognized revenues and expenditures in the amount of$I,717,645.17 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$I,421,489.17 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$296,156.00 \n \nNote 8: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1998, together with funding available: \n \nProject \n98/97S-647-073 99-647-079 SPLOST Projects Flood Recovery \n \nUnearned Executed Contracts \n \nFunding Available. FromFEMA \n \n$ 37,022.00 32,194.00 \n787,79463 7,456,045.86 \n \n$ 5,482,065.18 \n \n$ 8.313,056.49 $ 5.482,065.18 \n \nThe amounts described in this note are not reflected in the gep.eral purpose financial\" statements. \n \n- 25- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"F\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 8: SIGNIFICANT COMMITMENTS \n \nGovernmental Accounting Standards Board Technical Bulletin 98-1 requires certain disclosures in the Notes \n \nto the General Purpose Financial Statements concerning an entity's computer related year 2000 readiness. \n \nThese disclosures, which are necessary to comply with generally accepted accounting principles, have not \n \nbeen made by the Board. \n \n. \n \nNote 9: CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall fmancial position. \n \nThe Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. \n \nNote 10: ACCUMULATED EMPLOYEES' LEAVB \n \nThe Board's administrative staff and certain other full-time employees earn up to one and one-half days per \n \nmonth ofvacation leave. Vacation leave may be accumulated to a maximum of 30 days. Employees are paid, \n \nat their current rate ofpay, for unused accumulated vacation leave up to the maximum upon retirement or \n \ntermination of employment. See Note 1 - Compensated Absences . \n \n. \n \nNote 11: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System 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 fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the :rRS Board of Trustees in accordance with State statute and as advised by their independent actuary.' The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \n- 26- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"FI1 \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 1998 \n \nNote 11: RETIREMENT PLANS \nFiscal Year \n1998 1997 1996 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 7,136,105.17 $ 7,045,516.37 $ 6,621,098.33 \n \n- 27- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1998 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nInventories Consumable Supplies Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ 363,494.30 $ \n \n93,545.59 \n \n707,672.89 \n \n275,011.26 \n \n22,461,00 \n \n18,888.81 \n253,451,82 215,048.10 \n \nTotal Assets \n \n$ 1,833,567.18 $=====11;.;;6=,0=06=,.=59= \n \nTotal Liabilities and Fund Equity See notes to the general purpose financial statements. \n- 28- \n \n$ 1,833,567.18 $=====11;.;;6:1::,0=06;,;.=59= \n \n EXHIBIT\"G\" \n \nFEDERAL PROGRAMS \n \nOTHER PROGRAMS \n \nTOTALS JUNE 30,1998 JUNE 30, 1997 \n \n$ 457,039.89 $ 931,692.65 \n \n707,672.89 \n \n$ 1,503,520.58 $ \n \n5,000.00 \n \n1,805,992.84 \n \n1,127,292.77 \n \n18,888.81 \n253,451.82 215,048.10 \n \n23,660.65 \n148,290.11 . 237,477.33 \n \n$ 1,503,520.58 $ \n \n5,000.00 $ 3,458,094.35 $ 2,468,413.51 \n \n$ 187,651.93 $ 199,421.98 772,209.08 239,128.54 \n$ 1,398,411.53 $ \n \n5,000.00 $ \n \n192,651.93 $ 290,080.09 1,217,795.38 240,418.03 \n \n18,029.53 228,623.92 1,087,993.93 49,178.14 \n \n5,000.00 $ 1,940,945.43 $ 1,383,825.52 \n \n$ \n \n12,504.60 \n \n92,604.45 $ $ 105,109.05 $ \n \n$ \n \n12,504.60 $ \n \n54,564.33 \n \n18,888.81 \n \n23,660.65 \n \n253,451.82 215,048.10 \n \n148,290.11 237,477.33 \n \n0.00 \n \n1,017,255.59 \n \n620,595.57 \n \n0.00 $ 1,517,148.92 $ 1,084,587.99 \n \n$ 1,503,520.58 $ \n \n5,000.00 $ 3,458,094.35 $ 2,468,413.51 \n \n- 29- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1998 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Enterprise Operations \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCiNG SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ 458,460,00 $ 1,296,865,74 5,605,377.84 \n1,573,408.34 \n$ 7,637,246.18 $ 1,296,865.74 \n \n$ 1,146,487.27 \n117,534.49 72,498.43 \n \n19,810.54 45,307.25 \n$ 6,934;339.41 246,953.10 . 6,907.10 \n$ 7,188,199.61 $ 1,401,637.98 \n$ 449,046.57 $ -104,772.24 \n \n104,772.24 \n \n$ 449,046.57 $ \n \n0.00 \n \n962,993.30 \n \n0.00 \n \nFUND BALANCE JUNE 30 \n \n$ 1,412,039.87 $=====0.=00= \n \nSee notes to the general purpose financial statements. - 30- \n \n EXHIBIT\"H\" \n \nFEDERAL \nPROGRAMS \n \nOTHER \nPROGRAMS \n \nTOTALS \nYEAR ENDED JUNE 30,1998 JUNE 30,1997 \n \n$ 1,685,430.32 $ 6,642,645.32 \n616,814.88 \n$ 8,944,890.52 $ \n \n50,000.00 $ 3,490,756.06 $ 12,248,023.16 \n \n10,000.00 \n \n2,200,223.22 \n \n3,472,940.72 12,568,713.09 \n9,000.00 2,019,755.74 \n \n60,000.00 $ 17,939,002.44 $ 18,070,409.55 \n \n$ 5,739,310.51 $ \n755,588.54 812,380.87 \n51,307.26 409,431.93 \n16,545.90 \n108,134.78 17,938.94 \n1,114,131.69 \n$ 9,024,770.42 $ \n$ -79,879.90 $ \n \n81,724.25 $ 6,967,522.03 $ 6,976,213.22 \n \n873,123.03 884,879.30 \n51,307.26 409,431.93 \n16,545.90 \n127,945.32 63,246.19 \n1,114,131.69 6,934,339.41. \n246,953.10 6,907.10 \n \n697,985.05 1,136,260.99 \n31,761.82 454,560,86 \n220.00 5,504.02 178,290.59 49,815.00 904,351,75 7,214,981.91 215,157.12 423,242.14 \n \n81,724.25 $ 17,696,332.26 $ 18,288,344.47 \n \n-21,724.25 $ 242,670.18 $ -217,934.92 \n \n63,394.26 \n \n21,724.25 \n \n189,890.75 \n \n286,060.67 \n \n$ -16,485.64 $ 121,594.69 \n \n0.00 $ 432,560.93 $ \n \n0.00 \n \n1,084,587.99 \n \n68,125.75 1,016,462.24 \n \n$ 105,109.05 $====0=,=00= $ 1,517,148.92 $ 1,084,587.99 \n \n- 31 - \n \n pOUGHERTY COUNTY BOARD OF EDUCATION . COMBINING BALANCE SHEET CAPITAL PROJECTS FUND \nJUNE 3D, 1998 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nREGULAR \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \n$ \n \n0.00 \n \n$ 1,453,799.68 \n \n$ 34,768,188.85 \n \n287,486.89 \n \nTotal Assets \n \n$=======0.0..0.,= $ 34,768,188.85 $==1...,.7..4...1.:5,2=:86=.5;;,,;7= \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \n. Cash Overdraft Accounts Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Flood Recovery For Purposes of Bond Issue ForSPLOST For State Capital Outlay Projects Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n547,803.88 \n \n$ \n \n$ \n \n547,803.88 $ \n \n155,762.00 155,762.00 \n \n$ 34,220,384.97 \n \n$ 1,585,524.57 \n \n$ \n \n0.00 \n \n0.00 \n \n0.00 \n \n$ \n \n0.00 $ 34,220,384.97 $ 1,585,524.57 \n \nTotal Liabilities and Fund Equity \n \n$======0.:=00= $ 34,768,188.85 $==1...,.7..4...1.:5,2=:86=.5;;,,;7= \n \nSee notes to the general purpose financial statements. \n \n- 32- \n \n  EXHIBIT \"I\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nFEDERAL PROJECTS \n \nTOTALS JUNE 30, 1998 JUNE 30,1997 \n \n$ 1,453,799.68 $ 2,280,603.84 \n \n$ 3,536,149.27 \n \n38,304,338.12 \n \n2,320,761.36 $ 2,871,976.88 \n \n5,480,225.13 \n \n1,325,164.16 \n \n$ 5,856,910.63 $ 2,871,976.88 $ 45,238,362.93 $ 3,605,768.00 \n \n$ \n \n1,281.57 $ \n \n902,969.37 $ 1,452,054.82 $ \n \n36,694.10 \n \n3,705.35 \n \n58,010.37 \n \n1,497,061.15 \n \n1,710,833.52 \n \n206,606.10 \n \n271,326.85 \n \n271,326.85 \n \n27,055.40 \n \n$ \n \n59,291.94 $ 2,671,357.37 $ 3,434,215.19 $ \n \n274,060.95 \n \n$ $ 5,797,618.69 \n0.00 $ 5,797,618.69 $ \n \n200,619.51 $ \n \n200,619.51 $ 34,220,384.97 \n5,797,618.69 1,585,524.57 \n \n0.00 \n \n0.00 \n \n200,619.51 $ 41,804,147.74 $ \n \n1,516,561.90 \n1,810,686.75 4,458.40 \n3,331,707.05 \n \n$ 5,856,910.63 $ 2,871,976.88 $ 45,238,362.93 $ 3,605,768.00 \n \n- 33- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND \nYEAR ENDED JUNE 30,1998 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Other Support Services \nCapital Outlay Land and Land Improvements Building and Building Improvements Equipment \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds from General Obligation Bonds Par Value Premiums on Bonds Sold \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \n \nREGULAR \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \n$ \n \n132,013.39 \n \n12,820.50 \n \n$ \n \n239,475.29 \n \n$ \n \n669,200.37 \n \n$ \n \n239,475,29 $ \n \n669,200,37 $ \n \n144,833.89 \n \n$ \n \n475,979.00 \n \n$ \n \n22,319,32 \n \n39,593.35 \n \n$ \n \n7,783.21 \n \n244,745.00. \n \n11,600.00 \n \n452,963.72 \n \n$ \n \n306,657-.67 $ \n \n487,579.00 $ \n \n460,746.93 \n \n$ \n \n-67,182.38 $ \n \n181,621.37 $ -315,913.04 \n \n$ 35,000,000.00 \n \n325,518.25 \n \n$ \n \n62,723.98 \n \n$ \n \n90,750.86 \n \n-1,286,754.65 \n \n$ \n \n62,723.98 $ 34,038,763.60 $ \n \n90,750.86 \n \n$ \n \n-4,458.40 $ 34,220,384.97 $ -225,162.18 \n \n4,458.40 \n \n0.00 \n \n1,810,686.75 \n \nFUND BALANCE JUNE 30 \nSee notes to the general purpose financial statements. \n \n$====0.....0=0,= $ 34,220,384.97' $ 1,585,524.57 - 34- \n \n EXHIBIT\"J\" \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nFEDERAL PROJECTS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 1998 \n \nJUNE 30, 1997 \n \n$ \n \n439,603.57 $ \n \n571,616.96 $ \n \n405,959.58 \n \n3,896,011.66 \n \n3,908,832.16 \n \n3,702,115.41 \n \n$ 6,186,425.62 \n \n6,425,900.91 \n \n144,079.00 \n \n91,514.46 \n \n760,714.83 \n \n$ 6,277,940.08 $ 4,335,615.23 $ 11,667,064.86 $ 4,252,153.99 \n \n$ \n \n2,666.70 $ \n \n2,666.70 $ \n \n20,304.57 \n \n$ \n \n4,576.00 \n \n292,449.77 \n \n3,552.40 \n \n3.85 \n \n147,435.68 7,522.96 \n \n627,990.68 292,449.77 \n25,871.72 54,899.52 \n3.85 \n \n3,741.50 306,150.59 \n1,918.26 22,043.15 \n \n2,016.00 58,010.37 \n \n98,620.38 6,833,897.96 \n21,822.90 \n \n. 112,236.38 7,589,617.05 \n21,822.90 \n \n507,147.12 1,649,999.44 \n60,645.38 \n \n$ \n \n360,608.39 $ 7,111 ,966.58 $ 8,727,558.57 $ 2,571,950.01 \n \n$ 5,917,331.69 $ -2,776,351.35 $ 2,939,506.29 $ 1,680,203.98 \n \n$ 35,000,000.00 \n \n325,518.25 \n \n$ \"1,460,408.96 \n \n1,613,883.80 $ \n \n$ -119,713.00 \n \n-1 ,406,467.65 \n \n$ -119,713.00 $ 1,460,408.96 $ 35,532,934.40 $ \n \n312,459.96 312,459.96 \n \n$ 5,797,618.69 $ -1,315,942.39 $ 38,472,440.69 $ 1,992,663.94 \n \n0.00 \n \n1,516.561.90 \n \n3,331,707.05 \n \n1,339.043.11 \n \n$ 5.797,618.69 $ \n \n200,619.51 $ 41,804,147.74 $ 3,331,707.05 \n \n- 35- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30,1998 \n \nEXHIBIT\"K\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nPROPERTY TAXES \nFOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30,1998 \n \nJUNE 30, 1997 \n \n$ \n \n16,096,33 $ \n \n595.22 $ \n \n16,691.55 $ \n \n26,564.27 \n \n598,940.85 \n \n3,965,936.46 \n \n4,564,877.31 \n \n453,289.19 \n \n9,874.98 \n \n9,874.98 \n \n3,881.54 \n \nTotal Assets \n \n$ \n \n624,912.16 $ 3,966,531.68 $ 4,591,443.84 $==4=8.3..=.,7=35:=.0=0,== \n \nFUND EQUITY \nFund Balances Reserved For Debt Service Unreserved Undesignated \n \n$ \n \n624,912.16 $ \n \n_ _ _ _0=.;.\"\"'00__ \n \n3,966,531.68 $ 0,00 \n \n4,591,443.84 $ 0,00 \n \n483,735.00 0.00 \n \nTotal Fund Equity \n \n$ \n \n624,912.16 $ 3,966,531.68 $ 4,591,443.84 $==4=8..3.=.,7=35:=.0=0,== \n \n,,;;.-. \n \nSee. notes to the general purpose financial statements. \n \n- 36- \n \n .i\u003c'- \n \nDOUGHERTY COUNTY BOARD OF EDUCATION \n \nCOMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \n \nDEBT SERVICE FUND \n \nYEAR ENDED JUNE 30. 1998 \n \nEXHIBIT\"L\" \n \nFUND BALANCE JUNE 30 \n \n$ \n \n624,912.16 $ 3,966,531.68 $ \u003c4,591.443.84 $==4,;;;;8;,;;3=,7=35=.0=0= \n \nSee notes to the general purpose financial statements. \n \n- 37- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30,1998 \n \nEXHIBIT\"M\" \n \n$ \n \n0.00 $ \n \n76,472.44 $ \n \n76,472.44 $ -=======0.=00,,= \n \nLIABILITIES Funds Held for Others \n \n$====0=.0=0,= $ \n \n76,472.44 $ \n \n76,472.44 $======0.=00= \n \nSCHOOL ACTIVITY FUNDS \nASSETS Cash and Cash Equivalents \n \n$ \n \n289,536.72 $ 1,768,225.79 $ 1,635,815.11 $. 421,947.40 \n \nLIABILITIES Funds Held for Others \n \n$ \n \n289,536.72 $ 1,768,225.79 $ 1,635,815.11 $ \n \n421,947.40 \n \nTOTALS-AGENCY FUNDS \nASSETS Cash and Cash Equivalents Accounts Receivable \n \n~ \n \n$ \n \n256,664.08 $ 1,844,698.23 $ 1,679,414.91 $ \n \n421,947.40 \n \n32,872.64 \n \n32,872.64 \n \n$ \n \n289,536.72 $ 1,844,698.23 $ 1,712,287.55 $=======42=:1=,94;;,,;,,;,,;;7.==40= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n289,536.72 $ 1,844,698.23 $ 1,712,287.55 $ ==4;,;;2;,,;,1:,9=47;,,;.4,,;;0= \n \nSee notes to the general purpose financial statements. \n \n- 38- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 1998 \n \nSCHEDULE *1* \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U, S. Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1998 Contract \nTotal U, S, Department of Agriculture \nCorporation on National and Community Service Pass-Through From Georgia Department of Education Georgia Serve America Project 1997 Grant 1998 Grant \nTotal Corporation on National and Community Service \nEducation, U, S. Department of Direct Impact Aid 1998 Grant Pass-Through From Chattahoochee Flint Regional Educational Service Agency Elementary and Secondary Education Act TiUe I Migrant Education 1998 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1997 Suminer 1998 Grant 1998 Summer Title II Eisenhower Professional Development 1997 Grant 1998 Grant TiUeVI Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1997 Grant 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grant Georgia Learning Resources System 1998 Grant \n \nCFDA NUMBER \n* 10,553 * 10,555 \n10.550 \n10,558 \n94,004 94,004 \n84,041 \n84,011 \n84,010 84.010 84.010 84.281 84.281 84298 \n84.276 84,276 \n84,027 84,173 84,027 \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nN/A \n \n$ 1,408,870.13 \n \n(2) \n \nN/A \n \n3,577,486,98 $ 6,694,769,01 (3) \n \nN/A \n \n493.430.60 \n \n493,430,60 \n \nN/A \n \n125,590,13 \n \n(2) \n \n$ 5,605.377.84 $ 7.188.199,61 \n \nN/A \n \n$ \n \n1,195,88 $ \n \nN/A \n \n10.000,00 \n \n$ \n \n11,195,88 $ \n \n2,922.42 2.922.42 \n \n$ \n \n824,713,97 \n \n(4) \n \nNlA \n \n1,177.62 $ \n \n1,177.62 \n \nN/A \n \n99,844,61 \n \n151,507.71 \n \nN/A \n \n4,366,686,79 \n \n4,366,686.79 \n \nN/A \n \n299,672,36 \n \n298,978,48 \n \nN/A \n \n9,478.51 \n \n9,478.51 \n \nNlA \n \n74,605,00 \n \n73,505,55 \n \nN/A \n \n139,419,00 \n \n139,419.00 \n \nN/A \n \n9,783,88 \n \n10,069.57 \n \nN/A \n \n36,671,20 \n \n36,671,20 \n \nN/A \n \n754,559,70 \n \n754,559,70 \n \nN/A \n \n90,650.82 \n \n90,650,82 \n \nN/A \n \n114,858,58 \n \n114,858,58 \n \n- 39- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 1998 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nEducation, U. S. Department of Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Severely Emotionally Disturbed 1998 Grant Part 0 - Special Education Personnel Training and Parent Training 1997 Grant 1998 Grant Safe and Drug-Free Schools 1998 Grant Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant \nTotal U. S. Department of Education \nFederal Emergency Management Agency Pass-Through From Office of the Govemor Disaster Assistance \nHealth. and Human Services. U. S. Department of Pass-Through From Georgia Department of Human Resources Extended Day Program 1997 Grant \nLabor. U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Job Training Partnership Act 96-B-87 1997 Grant 89-B211998 Grant \nTotal U. S. Department of Labor \nOTHER FEDERAL ASSISTANCE \nDefense. U. S. Department of Direct Department of the Air Force R.O.T.C. Program 1998 Grant Department of the Marine Corps R.O.T.C. Program 1998 Grant Troops to Teachers 1998 Grant \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY 10 \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n84.027 \n84.029 84.029 84.186 84.196 \n84.048 84.243 \n83.516 \n \nN/A \n \n$ \n \n157.175.29 $ \n \n157.175.29 \n \nN/A \n \n-102.89 \n \n412.65 \n \nN/A \n \n4.600.00 \n \n4.262.19 \n \nN/A \n \n140.567.68 \n \n140.567.68 \n \nN/A \n \n14,000.00 \n \n14.000.00 \n \nN/A \n \n236.825.19 \n \n279.960.52 (3) \n \nN/A \n \n2,244.82 \n \n2.244.82 \n \n$ 7.377.432.13 $ 6.646.186.68 \n \nNlA \n \n$ 3.908,832.16 $ 7,572.713.51 (3) \n \n93.037 \n \nN/A \n \n$ \n \n6.657.56 $ \n \n6.657.56 \n \n17.250 17.250 \n \nN/A \n \n$ \n \nNlA \n \n$ \n \n67.212.40 $ 4.861.32 \n72.073.72 $ \n \n67.212.40 4,861.32 \n72,073.72 \n \n$ \n \n32,923.40 $ \n \n32,923.40 \n \n63.373.34 \n \n63.373.34 \n \n10,000.00 \n \n10,000.00 \n \n$ \n \n106,296.74 $ \n \n106,296.74 \n \nTotal Federal Financial Assistance N/A=Not Available \n \n- 40- \n \n$ 17.087.866.03 $ 21 ,595.050.24 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 1998 \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year, \n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1998 National School.Lunch Program, \n(3) Expenditures for this program include State, and/or Other Funds, Expenditures are not maintained by fund source, \n(4) Funds eamed on this program do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe Board did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the financial statements for the govemmental funds. \n \nSCHEDULE \"1\" \n \nSee notes to the general purpose financial statements. \n \n- 41 - \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30.1998 \n \nSCHEDULE \"3\" \n \n$ 90.476,305.00 $ 125.587.374.02 $ 7.328.815.20 $ \n \n0.00 \n \n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The Board's current estimate of total cost for each projed. Includes all cost from projed inception to completion. \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds. statellocal property taxes and/or other funds over the life of the projed. \n \nSee notes to the general purpose financial statements. \n \n- 43- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1998 \n \nSCHEDULE \"4\" \n \nEXPENDITURES \n \nALTERNATIVE SCHOOL PROGRAM \n \nINSTRUCTIONAL \n \nTECHNOLOGY \n \nASSISTIVE \n \nCLASSROOM \n \nTECHNOLOGY TECHNOLOGY \n \nPRE-KINDERGARTEN PROGRAM \n \nTOTAL \n \nCurrent \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \n3,068.87 $ \n \n22,403.80 $ 479,361,84 $ \n \n641,652.76 $ 1,146,487,27 \n \n117,534.49 72,498.43 19,810.54 45,307,25 \n \n117,534,49 72,498.43 19,810,54 45,307.25 \n \nTotal Expenditures \n \n$ \n \n3,068,87 $ \n \n22.403,80 $ 479,361.84 $ \n \n~~8;9:6;,;8;0,3;.4;7:~ $ 1,401,637.98 \n \nRECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Alternative School Program Instructional Technology Assistive Technology Classroom Technology Pre-Kindergarten Program \n \n$ 878,827.90 \n3,068,87 \n22,403,80 479,361.84 \n17,975,57 \n \n$ 1,401,637,98 \n \nSee notes to the general purpose financial statements, \n \n-44 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1998 \n \nSCHEDULE \"5\" \n \nMinimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis \nSalaries Operations \nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \nExpenditures per Audit \nAmount of Underexpenditure for Total Allotment \n \nFOURTEEN WEIGHTED AND MEDIA CENTER \nPROGRAMS \n \n100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \n \n$ \n \n46,099,368.00 $ _ _1:J:,2:;:0.:::.l9,~35:::..:.7..:.:.0:.=...0 \n \n$ \n \n49,821,045.61 \n \n1,935,521.88 $ _ _1:J.:,6:;:5:.:..J7,~63:;:5::..:.1:.=...6 \n \n$ \n \n51,756,567.49 \n \n-483,036.22 $ _---=5:..:.1l.:'2~73;;.:.;,5::;.;:3:..:.1:=.2,;...7 \n \n$ \n \n0.00 $=====0:;,;;.0==0 \n \nSee notes to the general purpose financial statements. - 45 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM \nGENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30,1998 \n \nSTAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development \nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs, See notes to the general purpose financial statements. \n \n$ \n \n135,833,00 \n \n$ \n \n135,833.00 $ \n \n0.00 \n \n332,224.00 \n \n332,224.00 \n \n$ \n \n468,057.00 100 $ \n \n468,057,00 $======0,;;;,0:.0 \n \n- 46 - \n \n SCHEDULE \"6\" \n \nTOTAL REQUIRED \n \nACTUAL EXPENDITURES \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nAMOUNT OF UNDEREXPENDITURE \nFOR REQUIRED ALLOTMENT \n \n$ 3,793,211.10 $ 4,344,996.78 $ \n \n86,847.31 $ 4,431,844.09 \n \n9,935,236.80 \n \n10,990,900.78 \n \n333,642.10 \n \n11,324,542.88 \n \n$ 13,728,447.90 $ 15,335,897.56 $ \n \n420,489.41 $ 15,756,386.97 $ \n \n0.00 \n \n4,120,801.20 \n \n5,040,536.82 \n \n224,637.51 \n \n5,265,174.33 \n \n0.00 \n \n7,151,517.00 \n \n9,756,530.06 \n \n405,376.82 \n \n10,161,906.88 \n \n0.00 \n \n4,793,163.30 \n \n5,751,774.32 \n \n154,484.42 \n \n5,906,258.74 \n \n0.00 \n \n2,028,924.00 \n \n2,072,019.87 \n \n141,325.38 \n \n2,213,345.25 \n \n0.00 \n \n1,245,171.60 \n \n2,137,082.07 \n \n138,603.71 \n \n2,275,685.78 \n \n0.00 \n \n$ 33,068,025.00 $ 40,093,840.70 $ 1,484,917.25 $ 41,578,757.95 \n \n$ 4,948,577.10 $ \n \n189,581.98 $ 2,481,640.95 2,666,545.82 \n277,501.31 44,on.97 \n \n14,970.15 $ 29,941.88 66,705.49 9,941.73 5,512.03 \n \n204,552.13 2,511,582.83 2,733,251.31 \n287,443.04 49,590.00 \n \n$ 4,948,5n.10 $ 5,659,348.03 $ \n \n127,071.28 $ 5,786,419.31 \n \n0.00 \n \n732,006.90 \n \n884,080.04 \n \n21,665.04 \n \n905,745.08 \n \n0.00 \n \n$ 5,680,584.00 $ 6,543,428.07 $ \n \n148,736.32 $ 6,692,164.39 \n \n$ 1,339,529.40 $ 1,421,635.34 $ \n \n23,981.59 $ 1,445,616.93 \n \n0.00 \n \n$ 40,088,138.40 $ 48,058,904.11 $ 1,657,635.16 $ 49,716,539.27 \n \n$ 1,145,659.50 $ 255,633.30 \n$ 1,401 ,292.80 $ \n \n1,762,141.50 $ \n1.762,141.50 $ \n \n$ 277,886.72 \n2n,886.72 $ \n \n1,762,141.50 2n,886.72 \n2,040,028.22 \n \n0.00 '0.00 \n \n$ 41,489,431.20 $ 49,821,045.61 $ 1,935.521.88 $ 51;756,567.49 $ \n \n0.00 \n \n$ \n \n135,833.00 \n \n332,224.00 \n \n$ =====4=68=:.:,0=5=7=.0=0 \n \n$ \n \n398,528.84 $ \n \n398,528.84 \n \n58,277.09 \n \n58,277.09 \n \n$ \n \n456,805.93 $ \n \n456,805.93 $ =====11,;;;,2=5..1..=.0.7.. \n \n 47 - \n \n SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 26, 1999 \n \nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Dougherty County Board ofEducation \n \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \n \nLadies and Gentlemen: \n \nWe have audited the financial statements of Dougherty County Board of Education as of and for the year \n \nended June 30, 1998, and have issued our report thereon dated March 26, 1999. This report was qualified \n \nfor various departures from generally accepted accounting principles, as identified in the auditor's report on \n \nthe general purpose financial statements. We conducted our audit in accordance with generally accepted \n \nauditing standards and the standards applicable to financial audits contained in Government Auditing \n \nStandards, issued by the Comptroller General of the United States. \n \n. \n \nCompliance \n \nAs part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its 'compliance with certain provisions of Jaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results ofour tests disclosed an instance ofnoncompliance that is required to be reported under Government Auditing Standards which is described in the accompanying Schedule of Findings and Questioned Costs as item FS6471-98-02. \n \nInternal Control Over Financial Reporting \n \nIn planning and performing our audit, we considered Dougherty County Board of Education's internal control \nover fmancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial \n \n98YB-60 \n \n reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Dougherty County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6471-98-03. \nA material weakness is a condition in which the design or operation of one or mpre 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 ofperforming their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that . are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. \nThis report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. \nRespectfully submitted, \n~...CAL uJ. ~- \nRussell W. Hinton State Auditor \nRWH:gp 98YB-60 \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 6562174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nMarch 26, 1999 \n \nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Dougherty County Board ofEducation \nREPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dougherty County Board of Education with the types of compliance \nrequirements described in the u.s. Office ofManagement and Budget (OME) Circular A-133 Compliance \nSupplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Dougherty County Board ofEducation'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 ofDougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit. . \nWe conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the CoinptrollerGeneral of the United States; and OMB Circular A-133,Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 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 Dougherty County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dougherty County Board of Education's compliance with those requirements. \n \n98SA-30 \n \n In our -opinion, the Dougherty County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major-Federal programs for the year ended June 30, 1998. \n \nInternal Control Over Compliance \n \nThe management of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Dougherty County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. \n \nWe noted a certain matter involving the internal control over compliance and its operation that we consider \n \nto be a reportable condition. Reportable conditions involve matters coming to our attention relating to \n \nsignificant deficiencies in the design or operation of the internal control over compliance that, in our \n \njudgement, could adversely affect the Dougherty County Board of Education's ability to administer a major \n \nFederal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The \n \nreportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item \n \nFA-6471-98-01. \n \n- \n \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not _ necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered-to be material weaknesses.. However, the reportable condition described above is not considered to. be a material weakness. \nThis rePort is intended for the information of management, the Federal cogniz~.t agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. \n \nRespectfully submitted, \n~~.~~ \nRussell W. Hinton \nState Auditor \n \nRWH:gp 98SA-30 \n \n SECTIONID . AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDlTEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1998 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \n6471-93-06 6471-95-02 6471-96-01 6471-96-02 FS-6471-97-01 FS-6471-97-02 FS-6471-97-03 FS-6471-97-04 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved -See Corrective Action/Responses Unresolved -See Corrective Action/Responses \n \nCORRECTIVE ACTIONIRESPONSES \n \nEXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $53,756.10 Finding Control Number: 6471-96-01 \n \nTo be resolved by future increase in QBE Local Fair Share. \n \nEMPLOYEE COMPENSATION .Salary Overpayment Amount: $34,114.60 Finding Control Number: 6471-96-02 \n \nThe overpayment has been turned over to the School system's lawyer and a note for the overpayment was received. $3,000.00 has been repaid on this account. \n \nEXPENDlTURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $29,309.23 Finding Control Number: FS-6471-97-01 \n \nTo be resolved by future increase in QBE Local Fair Share. \n \n- 1- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS \nYEAR ENDED JUNE 30, 1998 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Dougherty County Board of Education disclosed a financial statement reportable condition related to the following control category. \nGeneral Fixed Assets \nThe reportable condition described above is considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit of the Dougherty County Board of Education disclosed one instance of noncompliance deemed material to the financial statements. This noncompliance involved the Board's failure to transfer required funds from the General Fund to the Capital Projects Fund. \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dougherty County Board of Education disclosed a reportable condition in internal control over major programs for the following compliance requirement. \nProgram Income \nThe reportable condition described above is not considered to be a material weakness. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .51 OCa) of OMB Circular A-133 - The Dougherty County Board of Education's audit disclosed an audit finding required to be reported by section .51O(a) ofOMB Circular A-133. This audit finding is included in section IV ofthis report. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $540,869.53. \n- 1- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 1998 \nI SUMMARY OF AUDITOR'S RESULTS \n9. Low Risk Auditee The Dougherty County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department ofEducation. \nIT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEXPENDlTURESILIABILITIESlDlSBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $11,251.07 Finding Control Number: FS-6471-98-01 \nThe Board had an underexpenditure of Quality Basic Education (QBE) funds of $11 ,251.07 for the Staff Development Programs. The underexpenditure noted above occurred because the Board expended less than the minimum expenditure requirement for this QBE program. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. \nGENERAL LEDGER Failure to Transfer Local Matching Funds Material Noncompliance Repeated From Prior Year Finding Control Number: FS-6471-98-02 \nThe Dougherty County Board ofEducation failed to transfer all ofthe required local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Projects for the 1998 fiscal year. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units ofAdministration (FMGLUA) and the agreement signed by the Board to receive the funding through Georgia State Financing and Investment Commission (GSFIC) require that the Board transfer local matching funds by year end and designate those funds by project name and number. This deficiency occurred due to management disregarding the requirements of 'FMGLUA and the contractual agreement with GSFIC. Correcting audit adjustments were necessary to transfer $669,181.00 from the General Fund to GSFIC Project No. 98/97S-647-073 and to transfer $70,933.84 from the Capital Project SPLOST fund to GSFIC Project No. 99-647-079 as required.. \n-2- \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS \nYEAR ENDED JUNE 30, 1998 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6471-98-03 \n \nThe property records for the Dougherty County Board of Education's general fixed assets were found to be deficient. The detailed subsidiary records at June 30, 1998, were not adequately reconciled to the general ledger. Also, we were unable to reconcile beginning and ending property inventories through an analysis of fiscal year purchases/deletion activity. An unlocated variance of $681,111.46 existed at June 30, 1998 as disclosed in Note 4 to the General Purpose Financial Statements. This condition occurred as a result of management's failure to ensure that proper controls and procedures were maintained for the recording ofitems in the property inventory records and the general ledger. \n \nThe Board should correct the unlocated variance noted above and should establish controls to ensure that \n \nfixed asset additions and deletions are reconciled to the general ledger expenditure accounts in accordance \n \nwith the Board's policy. \n \n. \n \nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nPROGRAM INCOME Projected Loss of Supplemental Sales Revenue Reportable Condition U. S. Department of Agriculture Through Georgia Department ofEducation Amount: $40,324.84 Finding Control Number: FA-6471-98-0l \n \nA suspected misappropriation offunds at Monroe High School lunchroom was disclosed by Board personnel and communicated to the audit staff. The lunchroom's sales activity for March 1998 was tested using analytical procedures and the results ofthose procedures were used as a basis and when applied to sales for July 1, 1997 through March 23, 1998, resulted in a suspected loss of $40,324.84 based on projections of supplemental sales for the Food and Nutrition Program - Food Services - National School Lunch Program (CFDA 10.555). The Albany Police Department is currently investigating this matter with the assistance of the Dougherty County District Attorney's office. The Georgia Department of Education should review this matter and determine the amount of funds to be recovered by the School Food Services Fund. \n \n-3- \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":14,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":14}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits","hits":7},{"value":"Georgia. Department of Audits and Accounts","hits":7}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Auditors' reports--Georgia","hits":7},{"value":"Dougherty County (Ga.). 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