Report - SCCPSS Annual...Leisure Magazine (Best Romantic Getaway), Outlook Magazine, Condé Nast Traveler, Family Fun Magazine, USA Weekend, Walking Magazine, and the Atlanta Journal.

~--.,,-'

Report

~Finaricial

:~<~"

.·./omprehensiveAl1nUal ..

208 Bull Street

Savannah, Georgia 3 1401

Fiscal Year Ended

June 30, 2009·

Sa\ranliah-Chath.an'lCpunty .Public Schools

,J

.•j

I

omprehensiveAnnualFinancial

ReportSavannah-Chatham CountyPublic Schools208 Bull Street

Savannah, Georgia 31401

Fiscal Year Ended

June 30, 2009

Prepared by:Division of Finance

The Board of Public Education for the Cityof Savannah and the County of Chathalu, Georgia

NOTICE: Certain pages of this reporthave been left blank intentionally.

These pages are identified by the tree logoof the Savannah-Chatham County

Public Schools as shown on this page.

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS Page

INTRODUCTORY SECTION

Letter of Transmittal .......................................................................................................................................... A-1 List of Principal Officials .................................................................................................................................... A-7 Organizational Chart ......................................................................................................................................... A-8 ASBO Certificate of Excellence in Financial Reporting ..................................................................................... A-9 GFOA Certificate of Achievement for Excellence in Financial Reporting .......................................................... A-10

FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT ............................................................................................................ B-1 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A - Required Supplementary Information) .............. C-1 BASIC FINANCIAL STATEMENTS: DISTRICT-WIDE FINANCIAL STATEMENTS: Statement of Net Assets......................................................................................................................... D-1 Statement of Activities............................................................................................................................ D-2 FUND FINANCIAL STATEMENTS: Government Funds: Balance Sheet........................................................................................................................................ D-3 Reconciliation of Total Government Fund Balances to Net Assets of Governmental Activities .............. D-4 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................... D-5 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.......................................................................... D-6 Proprietary Funds (Internal Service): Statement of Fund Net Assets................................................................................................................ D-7 Statement of Revenues, Expenses and Changes in Fund Net Assets................................................... D-8 Statement of Cash Flows ....................................................................................................................... D-9 Fiduciary Funds (Agency): Statement of Fiduciary Assets and Liabilities ......................................................................................... D-10 NOTES TO THE BASIC FINANCIAL STATEMENTS.................................................................................... D-11 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A: Description ................................................................................................................................................. E-1 Budgetary Comparison Schedule - General Fund ..................................................................................... E-2 Notes to Required Supplementary Information on Budgetary Accounting and Control.............................. E-3

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS SUPPLEMENTARY DATA - Combining Fund Financial Statements and Schedules: Page NONMAJOR GOVERNMENTAL FUNDS: Description ................................................................................................................................................. F-1 Combining Balance Sheet - Nonmajor Governmental Funds................................................................. F-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds............................................................................................................................ F-4 Budgetary Comparison Schedules - Nonmajor Governmental Funds: Special Revenue Funds: High School Athletics .......................................................................................................................... F-6 Middle School Athletics....................................................................................................................... F-7 Special Programs ............................................................................................................................... F-8 Psychological Education ..................................................................................................................... F-9 Title I ................................................................................................................................................... F-10 Title VIB .............................................................................................................................................. F-11 School Food Service........................................................................................................................... F-12 Debt Service Fund.................................................................................................................................. F-13 INTERNAL SERVICE FUNDS: Description ................................................................................................................................................. F-14 Combining Statement of Net Assets .......................................................................................................... F-15 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets .................................... F-16 Combining Statement of Cash Flows......................................................................................................... F-17 FIDUCIARY FUNDS: Description ................................................................................................................................................. F-18 Combining Statement of Fiduciary Assets and Liabilities - Agency Funds................................................. F-19 Combining Statement of Changes in Assets and Liabilities - Agency Funds ............................................. F-20 SUPPLEMENTAL SCHEDULES: Description ................................................................................................................................................. F-21 Schedule of Allotments and Expenditures - By Program General Fund - Quality Basic Education Programs ................................................................................................................................................. F-22 Schedule of Approved Local Option Sales Tax Projects............................................................................ F-23

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS

STATISTICAL SECTION Page Description ....................................................................................................................................................... G-1 Net Assets – Last Eight Fiscal Years ............................................................................................................... G-2 Changes in Net Assets – Last Eight Fiscal Years ............................................................................................ G-3 Fund Balance of Governmental Funds – Last Ten Fiscal Years ...................................................................... G-5 Changes in Fund Balance, Governmental Funds Last Ten Fiscal Years .................................................................................................................................... G-6 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years .................................................................................................................................... G-8 Property Tax Rates – Direct and Overlapping Governments Last Ten Fiscal Years .................................................................................................................................... G-10 Principal Property Taxpayers Current Year and Period Nine Years Prior ..................................................................................................... G-12 Property Tax Levies and Collections - General Fund Last Ten Fiscal Years .................................................................................................................................... G-13 Property Tax Levies and Collections – Debt Service Fund Last Ten Fiscal Years .................................................................................................................................... G-14 Ratios of Outstanding Debt by Type Last Ten Fiscal Years .................................................................................................................................... G-15 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years .................................................................................................................................... G-16 Direct and Overlapping Governmental Activities Debt As of June 30, 2009 ....................................................................................................................................... G-17 Legal Debt Margin Information – Last Ten Fiscal Years .................................................................................. G-18 Demographic and Economic Statistics – Last Ten Fiscal Years ...................................................................... G-20 Primary Employers – Current year and Nine Years Ago .................................................................................. G-21 Full-time Equivalent Government Employees by Function – Last Ten Years................................................... G-22 Operating Statistics – Last Ten Fiscal Years ................................................................................................... G-23 Teacher Data – Last Ten Fiscal Years.............................................................................................................. G-24

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS Page Teachers’ Salary Schedule – Last Ten Years ................................................................................................ G-25 School Enrollment – Last Ten Fiscal Years ................................................................................................... G-26 School Buildings and Other Facilities as of June 30, 2009 ............................................................................ G-28

LETTER OF TRANSMITTAL

LIST OF PRINCIPAL OFFICIALS

ORGANIZATION CHART

ASBO CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING

GFOA CERTIFICATE OF ACHIEVEMENT FOR

EXCELLENCE IN FINANCIAL REPORTING

Savannah-Chatham County Public School System208 Bull Street / Savannah, Georgia 31401 / 912.395.1000

December 9,2009

Board Members and CitizensSavannah-Chatham County Board of EducationSavannah, GA

State law (O.C.G.A. §50-6-6) requires the District to submit an annual report of thefinancial records and transactions audited by the Department of Audits and Accounts orby independent certified public accountants. This document is submitted in fulfillment ofthis requirement. An audit was also conducted to meet the requirements of the FederalSingle Audit Act Amendment of 1996 and related Office of Management and BudgetCircular A-133, Audits of State and Local Governments. The results of the FederalSingle Audit are presented in a separate document.

Management assumes full responsibility for the completeness and reliability of theinformation contained in this report, based upon a comprehensive framework of internalcontrol that it has established for this purpose. Because the cost of internal controlshould not exceed anticipated benefits, the objective is to provide reasonable, ratherthan absolute, assurance that the financial statements are free of any materialmisstatements.

Robinson, Grimes & Company, P.C., Certified Public Accountants, have issued anunqualified ("clean") opinion on the financial statements of the Board of Public Educationfor the City of Savannah and the County of Chatham for the year ended June 30, 2009.The independent auditors' report is located at the front of the financial section of thisreport.

Management's discussion and analysis (MD&A) immediately follows the independentauditors' report and provides a narrative introduction, overview, and analysis of the basicfinancial statements. MD&A complements this letter of transmittal and should be read inconjunction with it.

PROFILE OF THE DISTRICT

The Board of Public Education for the City of Savannah and the County of Chatham,Georgia, incorporated in 1866, is a body politic and corporate, and a school district of theState of Georgia having boundaries coterminous with Chatham County. The Districtoperates a system of schools primarily for grades kindergarten through twelve, serving33,996 students. The District has no component units, which are legally separateorganizations for which the D.istrict is financially accountable.

A - 1

Mission - To ignite a passion {or learning and teaching at high levels

Vision - From school to the world: ALL students prepared {or productive {utures··AN EQUAL OPPORTUNITY EMPl.Oj'ER··

A - 2

The District operates under a Board-Superintendent form of government and provides public educational services to the citizenry of the City of Savannah and the County of Chatham, Georgia. The Board is composed of eight members elected from geographical districts and a President elected on a countywide basis. Members serve four-year staggered terms. Annually, the Board elects a Vice-President and a Vice-President pro tempore, and appoints a Secretary to the Board. The Board appoints the Superintendent for a term that is determined by the Board. As its Chief Executive Officer, the Superintendent has general supervisory and administrative responsibility for all departments and personnel of the School District. The Board receives funding from local, state, and federal government sources and must comply with the accompanying requirements of these funding entities. The Board is required to adopt a budget before the first day of the fiscal year. Annual budgets are legally required to be adopted for all funds except capital projects funds (which may adopt project budgets) and fiduciary funds (which do not report operations). This annual budget serves as the foundation for the Board’s financial planning and control. The District uses the same basis for both budgeting and accounting. Governmental funds budgets are prepared on a modified accrual basis, while proprietary funds (internal service funds) budgets are prepared on the accrual basis. Although not required to do so, the District adopts an annual budget for its capital projects fund for internal management purposes. No budgets are prepared for fiduciary funds. The level of legal budgetary control is at the fund level. For management purposes, budgetary control is maintained at the site/appropriation unit level by encumbrance accounting. LOCAL ECONOMY The Savannah area has a diverse economy that relies heavily on manufacturing, military, tourism, and port-related distribution. Its diverse manufacturing environment boasts over 200 firms, making everything from jet aircraft and aerospace equipment to chemicals, paper products, and baked goods. Hunter Army Airfield, a vital part of the Fort Stewart complex, (the largest military installation east of the Mississippi River), contributes a large military-civilian payroll to the local economy. Nearly 25,000 soldiers are stationed at Fort Stewart and at Hunter. Although most of them live and work in Hinesville (40 miles away), many soldiers and their dependents visit Savannah frequently to shop and take advantage of the city’s many amenities. Savannah is also home to units of the Coast Guard, the Air National Guard’s Combat Readiness Training Center, and the 165th Airlift Wing of the Georgia Air National Guard, whose personnel fly and maintain C-130H cargo planes. Tourism continues to be a bright spot in the local economy. A mild climate, abundant outdoor resources, rich history, and cultural opportunities contribute to a rich quality of life for area residents, and draw large numbers of tourists to the area. In recent years, Savannah has received accolades from numerous publications, including Travel + Leisure Magazine (Best Romantic Getaway), Outlook Magazine, Condé Nast Traveler, Family Fun Magazine, USA Weekend, Walking Magazine, and the Atlanta Journal. Savannah was featured in Delta’s Sky Magazine for November/December 2008. The recent downturn in the economy has been felt in the tourism industry, but Savannah has fared better than the rest of the state or the nation.

A - 3

The Port of Savannah is a major driver in the local economy. Although containerized trade declined nationally and worldwide in the year ended June 30, 2009, the Port of Savannah retained its position as the second busiest container facility on the East Coast and the fourth busiest in the nation. The Port promises to continue its significant contribution to the local economy for the foreseeable future. Chatham County’s unemployment rate of 8.7% for June, 2009, was lower than the Georgia statewide rate of 10.4% and the national rate of 9.7%. LONG-TERM FINANCIAL PLANNING All construction projects financed by the 1990 and 1994 bond referendums have been completed and capitalized. However, due to the continued aging of existing facilities, population shifts within the county, and technological advances, significant capital needs remained. On September 19, 2006, voters approved an E-SPLOST (Special Purpose Local Option Sales Tax for Educational Purposes) referendum to fund these needs. An additional 1% sales tax will be collected over a five-year period beginning January 1, 2007, and is expected to raise $300 million to fund new construction projects and make scheduled payments on existing debt. RELEVANT FINANCIAL POLICIES Board policy establishes certain expectations related to fund balance. As of June 30, 2009, unreserved fund balance in the General Fund exceeded the minimum of 5% of budgeted expenditures, and fell within the target range of 7-10% of budgeted expenditures. This resulted from well-controlled expenditures during a time of weakening state revenue collections. Under Board policy, any use of fund balance must be one-time in nature and must be approved by the Board. MAJOR INITIATIVES The District Accountability System was developed during the 2007-2008 year and adopted by the Board on September 10, 2008. It provides the framework for the school system’s strategic planning process, incorporating the Mission and Vision statements, Guiding Principles, and Strategic Goals. Supporting each of the Strategic Goals are one or more Objectives with specific measures and performance targets. These Objectives specify what the Superintendent and District staff will be doing to accomplish each of the Board’s Strategic Goals. Specific Board actions to support each of the Strategic Goals are also detailed. The District Accountability System was designed to help focus and guide the work of the School Board and Superintendent. Shortly after the Board’s appointment of Dr. Thomas B. Lockamy, Jr., as Superintendent on July 1, 2005, more than thirty individuals, including central and site-based administration as well as members of the school board, community, business and faith organizations, were invited to participate in the Guiding Coalition. The purpose of the Guiding Coalition is to steer the school system through the process of establishing and maintaining a system-wide focus on the implementation of the district’s philosophy of

A - 4

teaching and learning. During its fourth year (2008-2009), the Guiding Coalition provided valuable input on teacher morale, school safety, the redistricting process, the district reorganization plan, and leadership in schools. During the 2008-2009 school year, two charter schools were opened in the district. Gateway to College, sponsored by Savannah Technical College, is a dropout prevention and recovery program focusing on students ages 16-20 who have either dropped out of high school or are on the verge of dropping out. Students accepted into the Gateway to College program have the opportunity to complete their high school diplomas and simultaneously earn college credit toward a degree, diploma, or technical certificate. Coastal Empire Montessori Charter School, sponsored by a local community organization, will provide a rigorous, content-rich, hands-on curriculum utilizing the Montessori method for students in Pre-Kindergarten through Grade 5. Also, this year was the first of a three-year conversion of Hesse Elementary School from an elementary school serving students in Pre-Kindergarten through Grade 5 to a combination elementary/middle school serving students in Pre-Kindergarten through Grade 8. During the 2008-2009 school year, two “Little Red School Houses” were opened by the district. The neighborhood-based facilities provide academic support after school hours to ensure that all children are learning at high levels. Services provided include computer-assisted instruction using web-based, grade appropriate instruction, remediation and enrichment, credit recovery, homework assistance, CRCT prep, SAT and ACT prep, GHSGT prep, career and technology exploration and character education. The Gulfstream Student Leadership Program began during the 2008-2009 school year. Sponsored by Gulfstream Aerospace, the program is five-year partnership focusing on corporate and community involvement in the schools. The program’s objectives are to decrease the high school drop-out rate, increase leadership opportunities to our students, and create a collaborative between businesses, schools and parents to prepare students for the future. The Woodville-Tompkins Career and Technical Institute opened in the 2007-2008 school year as a state-of-the-art facility to offer high school students hands-on experiences in “real world” environments. In 2008-2009, the Early Childhood Education Program was awarded Industry Certification after successfully completing rigorous reviews by business and industry leaders. Also, in 2008-2009, the district and Gulfstream Aerospace Corporation received the Daniel M. Hull and Dale P. Parnell Partnership Excellence award from the National Career Pathways Network for the youth apprenticeship program at Woodville-Tompkins, which links secondary and postsecondary school-based learning with first-hand business experience to provide a seamless transition into the field of engineering and technology related to aviation. On March 3, 2009, the Board approved a district reorganization plan, later named “Passport to Excellence.” The purpose of the plan is to provide a diverse portfolio of educational options which will ensure that our school system is the first choice for families in Savannah-Chatham County. Every elementary, middle, and high school will provide students with a rigorous curriculum and relevant, engaging learning experiences from highly qualified teachers, in a safe and secure environment.

A - 5

During the 2008-2009 school year, the district was named one of the Top 10 school districts in the fifth annual Digital School Districts Survey. The Center for Digital Education, the National School Boards Association, and Converge Online Magazine announced that the district ranked eighth in the nation in districts with more than 15,000 students in the area of implementation of technology standards in the evolution of digital education. Also, the district Internal Audit Department’s “Academic Internal Auditor” was selected for inclusion in the American School Board Journal’s Magna Best Practices Database. During the 2008-2009 school year, Savannah Arts Academy received the Governor’s Cup trophy for improvement in SAT scores, and was one of 26 Georgia schools to be named a 2008 School of Excellence by State Superintendent Kathy Cox. Johnson High School was named to Newsweek Magazine’s Top Schools List. Beach High School was named a 2009 High Flying School by the National Youth at Risk Conference for demonstrating how they closed achievement gaps and raised achievement for all students. AWARDS AND ACKNOWLEDGEMENTS GFOA Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Board of Public Education for the City of Savannah and the County of Chatham, Georgia, for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2008. This was the fifteenth consecutive year that the district has received this prestigious award that demonstrates the spirit of transparency and full disclosure. In order to be awarded a Certificate of Achievement for Excellence the CAFR is reviewed by selected GFOA professional staff and members of the GFOA Special Review Committee, which is comprised of individuals with expertise in public sector financial reporting and includes financial statement preparers, independent auditors, and academic and other finance professionals. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate. ASBO Certificate of Excellence The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to the Board for the year ended June 30, 2008. This was the fifteenth consecutive year that the Board has received this prestigious award. This award certifies that the comprehensive annual financial report (CAFR) substantially conforms to the principles and standards of financial reporting as recommended and adopted by ASBO. The award is granted only after intensive reviews of financial reports by expert panels of governmental accountants and practicing governmental finance officials.

A-7

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA LIST OF PRINCIPAL OFFICIALS JUNE 30, 2009 BOARD MEMBERS Dr. Joe Buck President Susan J. Cox District 1 – Vice-President Alexander Luten District 3 - Vice-President Pro Tempore Floyd Adams, Jr. District 2 Lori L. Brady District 6 Julie Gerbsch District 7 Irene Gadson Hines District 5 Ruby Jones District 8 Gregory V. Sapp District 4 ADMINISTRATION Dr. Thomas B. Lockamy, Jr. Superintendent Jacqueline Colander-Chavis Chief Academic Officer David Feliciano Chief Data and Information Officer Rebecca T. McClain Chief Financial Officer Otis Brock, III Chief Operations Officer David Fields Executive Officer Cindi Kobleur Executive Director, Human Resources

Savannah-Chatham County Citizens

Board of Education

Board Attorney Internal Auditor

Superintendent

Savannah Public Schools Organizational ChartJune 30, 2009

Academic AffairsFinance Data and InformationOperations

Maintenance & Operations

Campus Police

School Nutrition

Budgeting

Purchasing

Disbursements

Accounting

Elementary Schools

Middle Schools

Curriculum & Instruction

Compensatory Programs

Exceptional Children

Public Information

Accountability and Assessment

Administrative Technology

Transportation (Outsourced)

Pupil Personnel

Human Resources

Professional Learning

Network and Engineering

Facilities Construction

High Schools

Media and Technology

IT Projects

Web Services

Benefits and Compensation

Employment Services

Risk Management

A-8

OfS

CH

OO

LB

USI

lV~

O~

~'8

S~~

~IN

TE

RN

AT

ION

AL

1:; 10

~ ~<d'

Thi

sC

ertif

icat

eof

Exc

elle

nce

inFi

nanc

ial

Rep

ortin

gis

pres

ente

dto

TH

EB

OA

RD

OF

PU

BLI

CE

DU

CA

TIO

NF

OR

TH

EC

ITY

OF

SA

VA

NN

AH

AN

DT

HE

CO

UN

TY

OF

CH

AT

HA

M,

GE

OR

GIA

For

itsC

ompr

ehen

sive

Ann

ual

Fin

anci

alR

epor

t(C

AF

R)

For

the

Fisc

alY

ear

End

edJu

ne30

,20

08

Upo

nre

com

men

datio

nof

the

Ass

ocia

tion'

sP

anel

ofR

evie

ww

hich

has

judg

edth

atth

eR

epor

tsu

bsta

ntia

llyco

nfor

ms

topr

inci

ples

and

stan

dard

sof

AS

BO

'sC

ertif

icat

eof

Exc

elle

nce

Pro

gram

:r-

eo

~~

Pre

side

nt

~~

.~

Exe

cutiv

eD

irect

or

Certificate ofAchievementfor Excellence

in Fina11cial

ReportingPresented to

The Board of Public :Education

for the City of Saval1na11 a11d th_e

County of Cllat11aI11, GeorgiaFor its Comprehensive Annual

Financial Report

for the Fiscal Year Ended

June 30, 2008

A Certificate of Achievement for Excellence in Financial

Reporting is presented by the Government Finance OfficersAssociation of the United States and Canada to

government units and public employee retiren1entsystems whose comprehensive annual fmancia!

reports (CAFRs) achieve the higheststandards in government accounting

and financial reporting,

~-----."/-- f-ti· .... / ....•.....•..•.Presidcnt

Executive Director

A-10

INDEPENDENT AUDITORS’ REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

5637 Whitesville Rd. P.O. Box 4299, Columbus, Georgia 31914 • Telephone 706-324-5435 • Fax 706-324-1209 • Email [email protected] Members of: American Institute of CPAs and related Private Companies Practice Section,

Employee Benefit Plan Audit Quality and Government Audit Quality Center • Center for Audit Quality • Georgia Society of CPAs • CPAmerica International • www.robinsongrimes.com

B-1

Independent Auditors' Report

To the Board of Public Education of the City of Savannah and the County of Chatham, Georgia Savannah, Georgia

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Board of Public Education of the City of Savannah and the County of Chatham, Georgia, (the “District”), as of and for the year ended June 30, 2009, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Board of Public Education of the City of Savannah and the County of Chatham, Georgia, as of June 30, 2009, 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.

In accordance with Government Auditing Standards, we have also issued our report dated December 9, 2009, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results 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 important for assessing the results of our audit.

B-2

The Board of Public Education of the City of Savannah and the County of Chatham, Georgia Page Two

The management’s discussion and analysis and the budgetary comparison information on pages C-1 through C-11 and E-2, are not a required part of the basic financial statements but is supplementary information required by 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 of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Certified Public Accountants

December 9, 2009

C - 1

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND

THE COUNTY OF CHATHAM, GEORGIA

MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2009

INTRODUCTION Our discussion and analysis of the financial performance of the Board of Public Education for the City of Savannah and the County of Chatham provides an overview of the school district’s financial activities for the fiscal year ended June 30, 2009. The intent of this management discussion and analysis is to look at the District’s financial performance as a whole; readers should also review the transmittal letter, financial statements and notes to the financial statements to enhance their understanding of the District’s financial performance. The basic financial statements contain three components:

1) District-wide financial statements including the Statement of Net Assets and the Statement of Activities which provide a broad, long-term overview of the District’s finances,

2) Fund financial statements, including the balance sheets, that provide a greater level of detail of revenues and expenditures and focus on how well the District has performed in the short term in the most significant funds, and

3) Notes to the financial statements.

This report presents the financial highlights for last year and contains other supplementary information. OVERALL ANALYSIS The District is the tenth largest school district in the state of Georgia, serving 33,996 students with a general fund budget of $303 million. In general, the financial operations of the District have remained fairly strong in spite of significant reductions in state revenues. Overall, revenues and expenses were lower than anticipated. The District’s overall financial position remains strong, although it has declined somewhat over the previous year. FINANCIAL HIGHLIGHTS Key financial highlights for 2009 are as follows: On the district-wide financial statements:

C - 2

Total net assets of the District as of June 30, 2008, were restated to properly accrue sales tax revenue, adjust QBE state revenue receivable, and reclassify the risk pool from the internal service fund to the general fund. See Note III.G.

Fiscal year 2009 operations increased total net assets of the District from

$362,884,319 at June 30, 2008 (restated) to $398,254,569 at June 30, 2009, an increase of $35,370,250, or 9.75%.

Total revenues decreased $15,184,706 from $410,225,837 in fiscal year 2008

(restated) to $395,041,131 in fiscal year 2009, or 3.70%. Total expenses increased $3,569,312 from $366,094,712 in fiscal year 2008 to

$369,664,024 in fiscal year 2009, or 0.97%. On the fund financial statements:

Fund balances of the District as of June 30, 2008, were restated to properly

accrue sales tax revenue, adjust QBE state revenue receivable, and reclassify the risk pool from the internal service fund to the general fund. See Note III.G.

Fiscal year 2009 operations increased ending fund balances of the District from

$121,821,611 at June 30, 2008 (restated), to $140,338,499 at June 30, 2009, an increase of $18,516,888, or 15.20%.

In the General Fund, unreserved fund balance decreased from $33,254,323 at

June 30, 2008 (restated) to $26,761,491 at June 30, 2009, a decrease of $6,492,832 or 19.52%.

Total General Fund actual revenues were $1,616,935, or 0.58%, more than

budgeted revenues. Total General Fund actual expenditures were $5,425,260, or 1.83%, less than

budgeted expenditures. OVERVIEW OF DISTRICT-WIDE FINANCIAL STATEMENTS The district-wide financial statements are designed to provide readers with a broad overview of the school district’s finances in a manner similar to a private sector business. The Statement of Net Assets and the Statement of Activities provide information about the activities of the school district as a whole, presenting both an aggregate and long-term view of the finances. These statements include all assets and liabilities using the accrual basis of accounting. This basis of accounting includes all of the current year’s revenues and expenses regardless of when cash is received or paid. The Statement of Net Assets presents information on all of the District’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the District’s net assets changed during the most recent fiscal year. All changes in net assets are reported as

C - 3

soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences.) The district-wide financial statements outline functions of the District that are principally supported by property taxes and intergovernmental revenues. The governmental activities of the District include instruction, support services, food services, and interest on long-term debt. The district-wide financial statements can be found on pages D-1 to D-2 of this report. Financial Analysis of the District as a Whole All of the District’s services are reported in the district-wide financial statements, including instruction, pupil services, instructional services, educational media services, general administration, business administration, school administration, pupil transportation, maintenance and operations, central support services, other support services, food services, and interest on long-term debt. Property taxes, and operating grants and contributions finance most of these activities. Additionally, all capital and debt financing activities are reported here. Statement of Net Assets

FY 2008FY 2009 (restated) Change % Change

Current assets 218,175,106$ 207,241,231$ 10,933,875$ 5.28%Capital assets, net 344,309,887 344,933,403 (623,516) -0.18%Total assets 562,484,993 552,174,634 10,310,359 1.87%

Current liabilities 57,740,019 67,441,378 (9,701,359) -14.38%Noncurrent liabilities 106,490,405 121,848,937 (15,358,532) -12.60%Total liabilites 164,230,424 189,290,315 (25,059,891) -13.24%

Net assetsInvested in capital assets

net of related debt 244,503,936 230,873,163 13,630,773 5.90%Restricted 110,449,803 73,333,137 37,116,666 50.61%Unrestricted 43,300,830 58,678,019 (15,377,189) -26.21%

Total net assets 398,254,569$ 362,884,319$ 35,370,250$ 9.75%

Governmental Activities

C - 4

Current assets increased, primarily due to an increase in the area of restricted cash and investments resulting from sales tax collections under the Educational Special Purpose Local Option Sales Tax. Capital assets, net of depreciation, decreased due to the depreciation of capital assets. Current liabilities decreased due to the reversal of an accrual for employer contributions for state health insurance. See Note III.F. for additional information on this Special Item. Long-term liabilities decreased due to scheduled principal retirements on bonded debt and contractual obligations.

C - 5

Statement of Activities

FY 2009FY 2008

(restated) Change % Change

Revenues:Program revenues:

Charges for services 3,364,070$ 3,264,340$ 99,730$ 3.06%Operating grants and contributions 162,920,627 181,343,337 (18,422,710) -10.16%Capital grants and contributions 2,070,626 1,662,271 408,355 24.57%

General revenues:Property taxes 166,800,618 155,956,005 10,844,613 6.95%Special purpose sales taxes 56,938,503 62,750,685 (5,812,182) -9.26%Other grants and contributions 991,371 937,103 54,268 5.79%Unrestricted investment earnings 1,528,577 3,391,835 (1,863,258) -54.93%Miscellaneous 426,739 920,261 (493,522) -53.63%

Total revenues 395,041,131 410,225,837 (15,184,706) -3.70%

Expenses:Instruction 224,717,046 226,878,415 (2,161,369) -0.95%Support services 123,918,078 119,868,198 4,049,880 3.38%Food services 16,335,995 14,510,015 1,825,980 12.58%Interest on long-term debt 4,692,905 4,838,084 (145,179) -3.00%

Total expenses 369,664,024 366,094,712 3,569,312 0.97%

Excess (deficiency) before special items 25,377,107 44,131,125 (18,754,018) -42.50%Special item - gain on sale of asset 988,114 (988,114) -100.00%Special item - health insurance 9,993,143 9,993,143 100.00%

Change in net assets 35,370,250 45,119,239 (9,748,989) -21.61%Net assets - beginning 362,884,319 317,765,080 45,119,239 14.20%Net assets - ending 398,254,569$ 362,884,319$ 35,370,250$ 9.75%


District-wide Revenues

0

50

100

150

200

250

300

350

400

450

FY 2009 FY 2008

$ MillionsMiscellaneous

Unrestricted investment earning

Other grants and contributions

Special purpose sales taxes

Property taxes

Capital grants and contributions

Operating grants and contributions

Charges for services

C - 6

Total revenues decreased $15,184,706, or 3.70%, as the result of three significant trends: a decrease in state funding due to state budget problems, a decrease in collections under the Educational Special Purpose Local Option Sales Tax (ESPLOST), partially offset by an increase in local tax revenues resulting from tax digest growth and improved collections.

District-wide Expenses

0

50

100

150

200

250

300

350

400

FY 2009 FY 2008

$ MillionsInterest on long-term debt

Food services

Support services

Instruction

Total expenses increased $3,569,312 or 0.97%, resulting primarily from increases in food services caused by the combination of higher food costs and higher student participation in breakfast and lunch programs. Special item resulted from the reversal of an accrual for employer contributions for state health insurance. See Note III.F. for additional information on this Special Item. Capital Assets At June 30, 2009, the District had $344,309,887 invested in capital assets, including land, construction in progress, buildings and improvements, and equipment. This amount represents a net decrease (including additions, deductions, and depreciation) of $623,516, or 0.18% from last year.

C - 7

Balance July 1, 2008 Increases Decreases

Balance June 30,

2009 Change%

ChangeLand 17,812,843$ 2,362,266$ 20,175,109$ 2,362,266$ 13.26%Construction in progress 7,197,221 11,191,745 (13,030,305) 5,358,661 (1,838,560)$ -25.55%Buildings and improvements 397,353,120 8,129,930 (210,092) 405,272,958 7,919,838$ 1.99%Equipment 81,509,016 6,948,541 (11,325,746) 77,131,811 (4,377,205)$ -5.37%Total capital assets 503,872,200 28,632,482 (24,566,143) 507,938,539 4,066,339 0.81%

Less accumulated depreciation:Buildings and improvements (98,415,562) (8,074,647) 2,984 (106,487,225) (8,071,663) 8.20%Equipment (60,523,235) (7,549,753) 10,931,561 (57,141,427) 3,381,808 -5.59%

Total accumulated depreciation (158,938,797) (15,624,400) 10,934,545 (163,628,652) (4,689,855) 2.95%Total capital assets, net 344,933,403$ 13,008,082$ (13,631,598)$ 344,309,887$ (623,516)$ -0.18%

Capital Assets at Net

‐

50

100

150

200

250

300

350

400

FY 2009 FY 2008

$ Millions

Equipment

Buildings and improvements

Construction in progress

Land

Capital assets, net of depreciation, decreased due to the depreciation of capital assets. See Note II.D. for additional information on Capital assets. Long-term Debt As of June 30, 2009, the District had $106,490,405 in total long-term debt. This represents a decrease of $15,358,532, or 12.60%, from the previous year, due to

C - 8

scheduled payments. Additional information on the District’s long-term debt can be found in Notes II.E. and II.F. OVERVIEW OF FUND FINANCIAL STATEMENTS A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into three categories: governmental funds, proprietary funds (internal service), and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the district-wide financial statements. However, unlike the district-wide financial statements, governmental fund financial statements focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the district-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the district-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are on pages D-4 and D-6, respectively. The District’s fund financial statements provide detailed information about the most significant funds – not the District as a whole. The majority of the District’s services are reported in governmental funds. Governmental fund reporting focuses on showing how money flows into and out of funds and the balances left at year-end that are available for spending. They are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds financial statements provide a detailed short-term view of the District’s operations and the services it provides.

In accordance with generally accepted accounting principles, the District maintains many individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General and ESPLOST Funds, each of which is considered to be a major fund. Also, data from the other non-major governmental funds are combined into a single aggregated column presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements beginning on page F-1 in this report.

The basic governmental fund financial statements can be found on pages D-3 through D-6 of this report.

C - 9

Revenues, Other Financing Sources and Special Item – Fund Financial Statements The following schedule presents a summary of the governmental funds revenues, and other financing sources for the period ended June 30, 2009 as compared to June 30, 2008. It also depicts the amount and percentage increases and decreases in relation to prior year revenues, other financing sources, and special item.

FY 2009FY 2008

(restated)

2009 Percent of

Total Change % ChangeProperty taxes 164,175,645$ 151,939,149$ 38.36% 12,236,496$ 8.05%Sales taxes 56,938,503 62,750,685 13.30% (5,812,182) -9.26%State sources 120,965,222 140,313,101 28.27% (19,347,879) -13.79%Federal sources 44,224,505 42,295,058 10.33% 1,929,447 4.56%Charges for services 3,209,987 3,419,563 0.75% (209,576) -6.13%Local and other funds 3,371,162 6,304,320 0.79% (2,933,158) -46.53%

Subtotal 392,885,024 407,021,876 91.81% (14,136,852) -3.47%Other f inancing sources 25,070,219 28,076,120 5.86% (3,005,901) -10.71%Special item 9,993,143 1,079,877 2.34% 8,913,266 825.40%

Total 427,948,386$ 436,177,873$ 100.00% (8,229,487)$ -1.89%

Expenditures and Other Financing Uses – Fund Financial Statements The following schedule represents a summary of the governmental funds expenditures for the fiscal year ended June 30, 2009 and 2008, and the percentage increase and decrease in relation to prior year amounts.

FY 2009FY 2008

(restated)

2009 Percent of

Total Change % ChangeCurrent

Instruction 214,348,160$ 215,468,974$ 52.35% (1,120,814)$ -0.52%Pupil services 18,791,013 19,069,994 4.59% (278,981) -1.46%Instructional services 11,971,358 10,751,357 2.92% 1,220,001 11.35%Educational media services 5,473,610 5,571,038 1.34% (97,428) -1.75%General administration 6,491,364 6,721,699 1.59% (230,335) -3.43%School administration 19,564,161 20,058,965 4.78% (494,804) -2.47%Business administration 9,087,858 4,895,043 2.22% 4,192,815 85.65%Maintenance and operations 24,792,396 25,973,440 6.06% (1,181,044) -4.55%Pupil transportation 17,047,484 16,677,697 4.16% 369,787 2.22%Central support services 4,621,826 4,492,465 1.13% 129,361 2.88%Other support services 1,915,339 1,318,831 0.47% 596,508 45.23%Food service operations 16,164,686 14,228,697 3.95% 1,935,989 13.61%

Debt service:Principal retirement 14,141,038 17,014,625 3.45% (2,873,587) -16.89%Interest and f iscal charges 4,836,309 5,470,764 1.18% (634,455) -11.60%

Capital outlay 15,602,177 12,903,569 3.81% 2,698,608 20.91%Subtotal 384,848,779 380,617,158 94.00% 4,231,621 1.11%Other f inancing uses 24,582,719 27,444,924 6.00% (2,862,205) -10.43%Total 409,431,498$ 408,062,082$ 100.00% 1,369,416$ 0.34%

C - 10

Analysis of Major Funds The Board has two major funds: the General Fund and the ESPLOST Fund. The General Fund is the general operating fund of the Board and is used to account for all financial resources except those required to be accounted for in another fund. The ESPLOST Fund is used to account for financial resources received from the Educational Special Purpose Local Option Sales Tax to finance construction of new schools and other capital projects. General Fund As of June 30, 2009, total fund balance in the General Fund was $26,761,491, all of which was unreserved. Restated total fund balance as of June 30, 2008 was $33,254,323. As a result of operations in fiscal year 2009, the total fund balance decreased by $6,492,832. This was due primarily to two factors: the planned (budgeted) use to bring fund balance down into the target range of 7-10% and a decrease in state funding. ESPLOST Fund As of June 30, 2009, total fund balance in the ESPLOST Fund was $100,778,520, of which $46,458,699 was reserved for encumbered construction commitments and $54,319,821 was unreserved. Restated total fund balance as of June 30, 2008 was $72,631,416. As a result of operations in fiscal year 2009, the total fund balance increased by $28,147,104, due to the deliberate and methodical progress of the construction program. Notes to Financial Statements The Notes to Financial Statements follow the statements in the report and complement the financial statements by describing qualifying factors and changes throughout the fiscal year. BUDGETARY HIGHLIGHTS Annual budgets are prepared on a basis consistent with accounting principles generally accepted in the United States for the General Fund, Debt Service Fund, Special Revenue Funds, and Other Funds. All annual unencumbered appropriations lapse at fiscal year-end.

In June 2008, the Board adopted a budget for fiscal year 2009 that reflected total resources including appropriations of $306,833,239 for the General Fund.

Actual General Fund revenues for fiscal year 2009 were $280,164,964 and

actual General Fund expenditures were $291,609,801.

Actual revenues were 0.58% more than budgeted revenues and actual expenditures were 1.83% less than budgeted expenditures.

C - 11

The original budget adopted by the District included the use of $10.2 million of

fund balance. During the year, the budget was amended several times, to adjust various expenditures in response to multiple mid-year reductions in state revenue, and to “roll forward” expenditure authority for certain specific activities. The final budget included the use of $12.1 million in fund balance. Actual revenues were $1.6 million over budget, actual expenditures were $5.4 million under budget, and other financing uses were $1.5 million under budget. This resulted in actual use of fund balance by $6.5 million.

NEXT YEAR’S BUDGET AND RATES

In June 2009, the Board adopted a balanced budget for fiscal year 2010 that reflected total resources including appropriations of $292,637,979 for the General Fund.

The fiscal year 2010 budget was based on a tax rate for maintenance and

operation of schools (M&O) of 13.404 mills. REQUESTS FOR INFORMATION This financial report is designed to provide citizens, taxpayers, parents, students, investors, and creditors with a general overview of the District’s finances and to show the District’s accountability for the money it receives. Additional details can be requested by mail at the following address:

Division of Finance Savannah-Chatham County School District

208 Bull Street, Room 302 Savannah, GA 31401

DISTRICT-WIDE FINANCIAL STATEMENTS


ASSETSCash and cash equivalents 46,539,826$ Receivables 63,003,913Inventories 297,024Other current assets 206,140Note receivable 3,375,000Bond issuance costs 576,262Restricted cash and investments 104,176,941Capital assets:

Land, improvements, and construction in progress 25,533,770Other capital assets, net of accumulated depreciation 318,776,117

Total assets 562,484,993

LIABILITIESAccounts payable and contracts payable 8,919,276Accrued interest 1,883,776Unearned revenue 178,132Salaries and benefits payable 43,561,558Other liabilities 1,263,590Payable from restricted assets- accounts and contracts payable 1,933,687Noncurrent liabilities:

Due within one year 14,593,358Due in more than one year 91,897,047

Total liabilities 164,230,424

NET ASSETSInvested in capital assets, net of related debt 244,503,936Restricted for: Debt Service 2,008,483 Capital projects 108,155,757 Grant Programs 285,563Unrestricted 43,300,830

Total net assets 398,254,569$

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIA STATEMENT OF NET ASSETSJUNE 30, 2009

The Notes to the Basic Financial Statements are an Integral Part of this Statement. D - 1

NET (EXPENSE)REVENUE AND CHANGES

PROGRAM REVENUES IN NET ASSETS OPERATING CAPITAL TOTAL

CHARGES FOR GRANTS AND GRANTS AND GOVERNMENTALEXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES

Functions/Programs Governmental activities: Instruction 224,717,046$ 212,525$ 115,739,169 1,061,987$ (107,703,365)$ Support services: Pupil services 18,828,137 228,820 3,736,099 0 (14,863,218) Instructional services 12,078,527 0 8,674,628 187,041 (3,216,858) Educational media services 5,514,672 0 2,673,324 0 (2,841,348) General administration 7,158,316 0 1,508,764 0 (5,649,552) School administration 19,606,623 0 5,605,606 0 (14,001,017) Business administration 9,106,879 58,010 22,470 0 (9,026,399) Maintenance and operations 25,331,401 0 6,688,151 56,668 (18,586,582) Pupil transportation 18,891,608 0 3,261,224 503,477 (15,126,907) Central support services 5,486,128 0 2,769,511 261,453 (2,455,164) Other support services 1,915,787 0 357,228 0 (1,558,559) Food services 16,335,995 2,864,715 11,884,453 0 (1,586,827) Interest on long-term debt 4,692,905 (4,692,905)

Total governmental activities 369,664,024$ 3,364,070$ 162,920,627$ 2,070,626$ (201,308,701)

General revenues: Taxes: Property taxes, levied for general purposes 166,800,618 Special purpose sales taxes for capital projects 56,938,503 Grants and contributions not restricted to specific programs 991,371 Unrestricted investment earnings 1,528,577 Miscellaneous 426,739Special item - health insurance (Note III.F.) 9,993,143 Total general revenues and special items 236,678,951

Change in net assets 35,370,250

Net assets, beginning 362,884,319 *

Net assets, ending 398,254,569$

* Restated. See Note III.G.

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH

STATEMENT OF ACTIVITIESAND THE COUNTY OF CHATHAM, GEORGIA

FOR THE YEAR ENDED JUNE 30, 2009


FUND FINANCIAL STATEMENTS

OTHER TOTALGENERAL ESPLOST GOVERNMENTAL GOVERNMENTAL

FUND FUND FUNDS FUNDSASSETS

Cash and cash equivalents 38,261,364$ 0$ 6,424,174$ 44,685,538$ Receivables 50,028,528 6,049,621 6,824,513 62,902,662Due from other funds 405,216 0 0 405,216Inventories 0 0 297,024 297,024Other current assets 34,570 0 171,570 206,140Restricted cash and investments 0 96,612,248 7,564,693 104,176,941Notes receivable 0 0 3,375,000 3,375,000

Total assets 88,729,678$ 102,661,869$ 24,656,974$ 216,048,521$

LIABILITIES AND FUND BALANCES

LIABILITIESAccounts and contracts payable 7,250,148$ 0$ 1,521,321$ 8,771,469$ Salaries and benefits payable 37,224,273 0 6,335,990 43,560,263 Due to other funds 0 0 405,216 405,216Other liabilities 156,000 0 0 156,000 Deferred revenue 17,337,766 0 3,545,621 20,883,387 Payable from restricted assets 0

Accounts payable and contracts payable 0 1,883,349 50,338 1,933,687Total liabilities 61,968,187 1,883,349 11,858,486 75,710,022

FUND BALANCESReserved for:

Inventories 0 0 148,444 148,444Debt service 0 0 2,001,476 2,001,476Encumbrances 0 46,458,699 0 46,458,699

Total reserved fund balances 0 46,458,699 2,149,920 48,608,619Unreserved:

Designated for: Debt service (pooled lease program) 1,890,782 0 0 1,890,782 Next fiscal year, reported in:

General fund 2,142,891 0 0 2,142,891 Special revenue funds 0 0 137,119 137,119

Undesignated, reported in:General fund 22,727,818 0 0 22,727,818 Capital projects funds 0 54,319,821 7,377,236 61,697,057 Special revenue funds 0 0 3,134,213 3,134,213

Total unreserved fund balances 26,761,491 54,319,821 10,648,568 91,729,880

Total fund balances 26,761,491 100,778,520 12,798,488 140,338,499

Total liabilities and fund balances 88,729,678$ 102,661,869$ 24,656,974$ 216,048,521$

GOVERNMENTAL FUNDS


BALANCE SHEET JUNE 30, 2009

AND THE COUNTY OF CHATHAM, GEORGIA


Total fund balances - governmental funds 140,338,499$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in this fund financial statement, but are reported in the governmental activities of the Statement of Net Assets. 344,309,887

Other long-term assets are not available to pay for current period expenditures: Property taxes deferred in the funds $17,330,255 Notes receivable deferred in the funds 3,375,000 Interest receivable 101,250 20,806,505

The assets and liabilities of internal service funds are not included in the fund financial statement, but are included in the governmental activities of the Statement of Net Assets. 597,599

Some liabilities, (such as Notes Payable, Capital Lease Contract Payable, Long-term Compensated Absences, and Bonds Payable), are not due andpayable in the current period and are not included in the fund financial statement, but are included in the governmental activities of the Statementof Net Assets. See the long-term debt note. (105,914,145)

Interest payable on long-term obligations is not due and payable in the current period and is not included in the fund financial statements, but is included in the governmental activities of the Statement of Net Assets. (1,883,776)

Total net assets - governmental activities 398,254,569$

JUNE 30, 2009

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIA RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCESTO NET ASSETS OF GOVERNMENTAL ACTIVITIES


OTHER TOTALGENERAL ESPLOST GOVERNMENTAL GOVERNMENTAL

FUND FUND FUNDS FUNDSREVENUES

Property taxes 164,175,645$ 0$ 0$ 164,175,645$ Sales taxes 0 56,938,503 0 56,938,503 State sources 110,453,491 0 10,511,731 120,965,222 Federal sources 3,913,508 0 40,310,997 44,224,505 Charges for services 71,992 0 3,137,995 3,209,987 Local and other funds 1,550,328 1,021,049 799,785 3,371,162

Total revenues 280,164,964 57,959,552 54,760,508 392,885,024

EXPENDITURESCurrent:

Instruction 187,256,753 1,857,651 25,233,756 214,348,160 Pupil services 14,756,775 0 4,034,238 18,791,013 Instructional services 3,681,212 0 8,290,146 11,971,358 Educational media services 5,469,735 0 3,875 5,473,610 General administration 4,928,654 0 1,562,710 6,491,364 School administration 19,385,604 0 178,557 19,564,161 Business administration 9,087,858 0 0 9,087,858 Maintenance and operations 24,548,188 0 244,208 24,792,396 Pupil transportation 16,699,985 0 347,499 17,047,484 Central support services 4,601,012 0 20,814 4,621,826 Other support services 3,857 1,563,222 348,260 1,915,339 Food service operations 0 0 16,164,686 16,164,686

Debt service:Principal 0 0 14,141,038 14,141,038 Interest and other charges 0 0 4,836,309 4,836,309

Capital outlay 1,190,168 11,853,465 2,558,544 15,602,177

Total expenditures 291,609,801 15,274,338 77,964,640 384,848,779

Excess (deficiency) of revenues over (under) expenditures (11,444,837) 42,685,214 (23,204,132) 8,036,245

OTHER FINANCING SOURCES (USES)Transfers in 905,000 0 20,484,248 21,389,248Transfers out (5,946,138) (14,538,110) (905,000) (21,389,248) Capital lease - refinancing proceeds 0 0 3,193,471 3,193,471 Capital lease - repayment 0 0 (3,193,471) (3,193,471) Collections of note receivable 0 0 487,500 487,500

Total other financing sources (uses) (5,041,138) (14,538,110) 20,066,748 487,500

SPECIAL ITEM (Note III.F.) 9,993,143 0 0 9,993,143

Net change in fund balances (6,492,832) 28,147,104 (3,137,384) 18,516,888

Fund balances, beginning 33,254,323 * 72,631,416 * 15,935,872 121,821,611 Fund balances, ending 26,761,491$ 100,778,520$ 12,798,488$ 140,338,499$

* Restated. See Note III.G.


GOVERNMENTAL FUNDSSTATEMENT OF REVENUES, EXPENDITURES AND

JUNE 30, 2009


CHANGES IN FUND BALANCES


Total net change in fund balances - governmental funds 18,516,888$

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report outlays for capital assets as expenditures becausesuch outlays use current financial resources. In contrast, the Statement of Activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period. This is the amount by which capital outlays $15,602,177 exceeded (were less than) depreciation $15,624,400 in the current period. (22,223)

The net effect of various miscellaneous transactions involving capital assets(i.e. sales, trade-ins, donations) is to increase (decrease) net assets. This is the amount ofthe net book value of the other dispositions. (601,293)

Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the Statement ofActivities when earned: Deferred property tax revenue $2,624,973 Notes receivable and related interest (386,250) $2,238,723

Governmental funds report debt proceeds as current financial resources. Incontrast, the Statement of Activities treats such issuance of debt as a liability. Governmental funds report repayment of debt principal as an expenditure. Incontrast, the Statement of Activities treats such repayments as a reduction in long-term liabilities. This is the amount by which payments exceeded proceeds. See long-term debt note. 14,141,038

In the Statement of Activities, interest is accrued on outstanding debt, whereasin governmental funds, an interest expenditure is reported when due. 143,423

Some expenses reported in the Statement of Activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds: Change in liability for compensated absences 1,131,192 Amortization of deferred charge on refunding (281,110) Amortization of bond issuance costs (84,332) Amortization of bond premium 367,412 1,133,162

Internal service funds are used by management to charge the costs of certainactivities, such as insurance, to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities. (179,468)

Change in net assets of governmental activities 35,370,250$

FOR THE YEAR ENDED JUNE 30, 2009OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIA RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES


GovernmentalActivities-

Internal Service Funds

ASSETS Current assets:

Cash and cash equivalents 1,854,287$ Total assets 1,854,287

LIABILITIESCurrent liabilities:

Accounts payable 147,807Other liabilities 1,108,881

Total liabilities 1,256,688

NET ASSETSUnrestricted 597,599

Total net assets 597,599$


PROPRIETARY FUNDSSTATEMENT OF FUND NET ASSETS JUNE 30, 2009



THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIAPROPRIETARY FUNDSSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2009


Internal ServiceFunds

OPERATING REVENUESRisk management fees 2,090,544$

Total operating revenues 2,090,544

OPERATING EXPENSESRisk management 2,301,192

Total operating expenses 2,301,192 Operating loss (210,648)

NON-OPERATING REVENUESInterest and investment revenue 31,180

Change in net assets (179,468)

Total net assets - beginning 777,067Total net assets - ending 597,599$


THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIAPROPRIETARY FUNDSSTATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2009


Internal ServiceFunds

CASH FLOWS FROM OPERATING ACTIVITIES Cash received for services and fees 2,090,544$ Cash paid for supplies and insurance (2,374,273)

Net cash used in operating activities (283,729)

CASH FLOW FROM INVESTING ACTIVITIES Investment income 31,180

Net cash provided by investing activities 31,180

Increase in cash and cash equivalents (252,549) Cash and cash equivalents, beginning of year 2,106,836

Cash and cash equivalents, end of year 1,854,287$

Reconciliation of operating income to net cash provided by operating activities:Operating loss (210,648)$

Increase in accounts payable 123,471Decrease in other liabilities (196,552)

Net cash used in operating activities (283,729)$


THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIAAGENCY FUNDSSTATEMENT OF FIDUCIARY ASSETS AND LIABILITIESJUNE 30, 2009

AGENCYFUNDS

ASSETS Cash and cash equivalents 1,073,911$

Total assets 1,073,911$

LIABILITIESDue to student groups 1,076,728$ Other liabilities (2,817)

Total liabilities 1,073,911$


THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA NOTES TO THE BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2009

D-11

NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PAGE A. Reporting Entity D-12 B. Basic Financial Statements D-12 C. Measurement Focus and Basis of Accounting D-15 D. Assets, Liabilities, and Equity D-16 E. Revenues, Expenditures, and Expenses D-20 F. Budgets and Budgetary Accounting D-21 NOTE II. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS A. Deposits and Investments D-22 B. Receivables D-23 C. Property Taxes D-24 D. Capital Assets D-25 E. Capital Leases D-26 F. Long-term Debt D-27 G. Interfund Receivables, Payables and Transfers D-29 NOTE III. OTHER NOTES A. Other Postemployment Benefits D-30 B. Retirement Plans D-30 C. Contingencies and Commitments D-31 D. Risk Management D-32 E. On-Behalf Payments D-34 F. Special Items D-34 G. Restatement D-35


D-12

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Board of Public Education for the City of Savannah and the County of Chatham, Georgia (the “district”) operates under a Board-Superintendent form of government and provides public educational services to the citizenry of the City of Savannah and the County of Chatham, Georgia. The district receives funding from local, state, and federal government sources and must comply with the accompanying requirements of these funding source entities. The district’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Government Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established in GAAP and used by the district are discussed below.

A. Reporting Entity Generally accepted accounting principles defines the reporting entity for determining which potential component units should be included in a primary government’s financial statements. Inclusion is based on financial accountability or the fact that exclusion would make the financial statements misleading or incomplete. The criteria for determining financial accountability includes appointing a voting majority of an organization’s governing body and (1) the ability of the district to impose its will on that organization or (2) the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the district. Using the above criteria the district has no component units. The district is a primary government since it meets the following criteria:

a. It has a separately elected governing body. b. It is legally separate. c. It is fiscally independent of other state and local governments.

Since the district is a primary government, it is not a component unit of any other governmental reporting entity. B. Basic Financial Statements The district’s basic financial statements include both district-wide (reporting the district as a whole) and fund financial statements (reporting the district’s major funds). Both the district-wide and fund financial statements categorize its primary activities as governmental. Those activities (functions) are instruction, pupil services, instructional services, educational media services, general administration, business administration, school administration, pupil transportation, maintenance and operations, central support services, other support services, food service operations and interest on long-term debt.


D-13

1. District-wide Financial Statements

In the district-wide Statement of Net Assets, the governmental activity column (a) is presented on a consolidated basis and (b) is reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The district’s net assets are reported in three parts - invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. The district first utilizes restricted resources to finance qualifying activities. The district-wide Statement of Activities reports both the gross and net cost of each of the district’s functions. The functions are also supported by general government revenues (property taxes, certain intergovernmental revenues, unrestricted investment earnings, and other revenues). The Statement of Activities reduces gross expenses (including depreciation and other indirect costs that are allocated proportionally among the functions) by related program revenues that are directly associated with the function. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. This district-wide focus is more on the sustainability of the district as an entity and the change in the district’s net assets resulting from the current year’s activities.

2. Fund Financial Statements

The financial transactions of the district are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets, liabilities, fund equity, revenues, and expenditure/expenses. The various funds are reported by generic classification within the financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. The emphasis in fund financial statements is on the major funds in the governmental fund category. The district reports the following major governmental funds:

• General Fund • ESPLOST Fund


D-14

The district uses the following fund types:

a. Governmental Funds: The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the district:

i. The General Fund is the general operating fund of the district. It is used to account for all financial resources except those required to be accounted for in another fund.

ii. Special Revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

iii. The Debt Service fund is used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt.

iv. The Capital Project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The ESPLOST fund accounts for the proceeds from the special purpose option sales tax for educational purposes that are restricted for the construction and major renovation of schools.

b. Proprietary Funds:

The focus of proprietary fund measurement is upon determination of operating income, changes in net assets, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The following is a description of the proprietary funds of the district: Internal service funds are used to account for the financing of risk management services such as: worker’s compensation, unemployment compensation, and employee dental plan that are charged to other departments or funds of the district on a cost-reimbursement basis. The principal users of the internal services are the district’s governmental activities. The financial statement of the internal service fund is consolidated into the governmental column when presented in the district-wide financial statements. The cost of these services is reported in the appropriate functional activity, as disclosed at Note lll.D.


D-15

c. Fiduciary Funds:

Fiduciary Funds are used to report assets held in an agency capacity for others, are not available to support district programs, and do not involve measurement of results of operations. The district has two fiduciary (agency) funds. The Flex-one fund accounts for employee withholdings for dependent care under section 125 of the IRS code and the Student Activity fund accounts for various student activities. The district’s fiduciary funds are presented in the fiduciary fund financial statements by type (agency). Since by definition these assets are being held for the benefit of third parties and cannot be used to address activities or obligations of the government, these funds are not incorporated into the district-wide statements.

C. Measurement Focus and Basis of Accounting

Basis of accounting refers to the point at which revenues or expenditure/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. The measurement focus relates to the types of transactions reported. The district-wide financial statements and the proprietary (internal service) fund are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities (whether current or non-current) are included on the statement of net assets. Governmental funds financial statements are accounted for on a flow of current financial resources measurement focus. With this measurement focus, generally only current assets and current liabilities are reported.

1. Accrual: Governmental activities in the district-wide financial statements, the proprietary (internal service) fund financial statements, and the fiduciary (agency) fund financial statements are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. 2. Modified Accrual: The governmental funds financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measureable and available. “Available” means collectible within the current period or within 60 days after year end. Revenues considered susceptible to accrual are property taxes, sales tax, intergovernmental revenues, and investment income. Expenditures are generally


D-16

recognized under the modified accrual basis of accounting when the related liability is incurred. The exception to this general rule is that principal and interest on long-term debt are recognized when due.

D. Assets, Liabilities, and Equity

1. Deposits and Investments: The district maintains a cash and investment pool that is available for all funds. Each funds’ portion of this pool is displayed as “Cash & Investments.” For purposes of the statement of cash flows, the district considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. 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 a 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 no less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. OCGA Section 45-8-11(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in the demand deposit checking accounts. The district has no custodial credit risk policy that would require additional collateral requirements. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do no have an established market price are reported at estimated fair values. Interest income on investments is accrued as earned. The district is authorized by state statutes to invest in the obligations of the U.S. Treasury, agencies and instrumentalities, repurchase agreements, bank certificates of deposit, and the Georgia Fund 1 administered by the State of Georgia. Georgia Fund 1 was created under OCGA 36-83-8 and operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the Securities Exchange Commission as an investment company. The fair value of the district’s


D-17

position in the pool is the same as the value of pool shares ($1 per share value). 2. Receivables: In the fund financial statements, material receivables in governmental funds include revenue accruals such as property taxes, sales taxes, grants, and other similar intergovernmental revenues since they are usually both measurable and available. Non-exchange transactions collectible but not available are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the district-wide financial statements in accordance with the accrual basis. Accounts receivable comprise the majority of proprietary fund receivables. Allowance for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. 3. Inventory: Inventories are stated at cost (principally first in, first-out), which is not in excess of market. The district utilizes the consumption method to recognize inventory usage. Under the consumption method, inventories are recorded as expenditures when used rather than when purchased. Reported inventories are equally offset by a reservation of fund balance, which indicates that they do not constitute “available spendable resources” even though they are a component of net current assets. The United States Department of Agriculture (USDA) commodity portion of the food services inventory consists of food donated by the USDA. It is valued at estimated market prices by the USDA. The amount of commodities on hand at year-end is reflected as deferred revenue. 4. Restricted Assets: Restricted assets represent amounts related to bond proceeds, tax levies, and sales tax proceeds whose use is limited to capital projects by applicable bond covenants or enabling legislation. 5. Capital Assets: The accounting treatment over Capital Assets depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the district-wide or fund financial statements.


D-18

District-wide Statements Capital assets, which include land, building, building improvements, and equipment, are reported in the applicable governmental activities columns in the district-wide financial statements. Capital Assets are recorded at historical cost or estimated historical cost if purchased or constructed. The capitalization threshold is a unit cost of $1,000 or more, except for computers which are capitalized regardless of cost. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:

Buildings and Improvements 20-50 years Equipment 3-10 years

Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in district-wide statements. 6. Long-term Debt: The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the district-wide or fund financial statements. Long-term debt to be repaid from governmental resources is reported as a liability in the district-wide statements. The long-term debt consists of general obligation bonds, contractual obligations, capital leases, and accrued compensated absences. Bond premiums and discounts, as well


D-19

as issuance costs, are deferred and amortized over the life of the bonds using a straight-line method. Long-term debt for governmental funds is not reported as a liability in the fund financial statements. The face amount of the debt issued and premiums on the debt issuances are reported as other financing sources. Payment of principal, interest and issuance costs, whether or not withheld from the actual debt proceeds, are reported as debt service expenditures. 7. Equity Classifications: District-wide Statements Equity is classified as net assets and displayed in three components:

a. Invested in capital assets, net of related debt – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

b. Restricted net assets- Consist of net assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation.

c. Unrestricted net assets- All other net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.”

Fund Statements Governmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Fund balance designations are established to indicate tentative plans for financial resource utilization in a future period. Proprietary fund equity is classified the same as in the district-wide statements.


D-20

E. Revenues, Expenditures, and Expenses

1. Operating Revenues and Expenses: Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the district’s internal service funds are charges to funds for risk management services. The district’s operating expenses for internal service funds include risk management expenses. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 2. Expenditures/Expenses In the district-wide financial statements, expenses are classified by function for governmental activities. In the fund financial statements, expenditures are classified as follows: Governmental Funds – By Character: Current (further classified by function), Debt Service, and Capital Outlay. Proprietary Fund – By Operating and Non-Operating In the fund financial statements, governmental funds report expenditures of current financial resources. Proprietary funds report expenses relating to use of economic resources. 3. Interfund Activity and Internal Balances: Interfund activities are reflected as either loans, services provided, reimbursements or transfers. Loans are reported as receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses and are eliminated from the statement of activities to remove the “doubling-up” effect of the activity. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. Permanent reallocation of resources between funds is classified as interfund transfers. In the process of aggregating data for the Statement of Net Assets and the Statement of Activities certain amounts reported as interfund activity and balances in the funds are eliminated or reclassified in the district-wide financial statements.


D-21

Exceptions to this general rule are charges between the districts internal service functions and other district functions. The amounts charged are reasonably equivalent in value to the services provided. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. See note I.B.2.b for additional information on Internal Service Funds. 4. Compensated Absences: Eligible district employees earn annual vacation based on length of service, to a maximum of 22 days after 20 years of service. Sick leave accrues based upon the following provisions:

1) All employees earn one and one-quarter days of sick leave with full pay each month.

2) Sick leave is cumulative up to one hundred twenty days. 3) Upon retirement or termination of employment with five or more

years of service in the school system and at least thirty full days of unused sick leave, employees are paid a portion of their accumulated sick leave as severance pay based on a formula approved by the district.

All compensated absences and related benefits are accrued when incurred in the district-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 5. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that may affect the amounts reported in the financial statements and the related notes. Accordingly, actual results could differ from these estimates.

F. Budgets and Budgetary Accounting

Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General, Special Revenue, and Debt Service funds. Appropriations for capital projects are adopted by the district principally on an individual project basis, when the project is initially approved. All appropriations, both encumbered and unencumbered, lapse at June 30, except encumbrances in the ESPLOST and Other Capital Projects Fund, which are continuing. The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is at the fund level.


D-22

II. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS

A. Deposits and Investments

Summary of the districts deposits and investments at June 30, 2009 is as follows:

Account Balances Ownership of Funds

Petty Cash/Cash on Hand 21,031$ Governmental Funds:Demand Deposits 21,117,042 Cash and Investments 44,685,538$ Money Market Funds 18,165,132 Restricted Cash and Investments 104,176,941 Certificates of Deposit 10,600,000 Internal Service Funds 1,854,287 Investments 101,887,472 Agency Funds 1,073,911

151,790,677$ 151,790,677$

As of June 30, 2009, the district had the following investments:

Weighted AverageInvestment Maturities Fair Value

Georgia Fund I (investment pool) 28 day average 101,887,472$ 101,887,472$

Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. The district’s policy is to minimize interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and investing operating funds primarily in shorter-term securities, money market funds, or similar investment pools and limiting the average maturity of the portfolio. Credit risk is the risk that an issuer or counterparty to an investment will not fulfill its obligations. The district’s investment policy minimizes credit risk by limiting the types of securities to those listed in Note I.D.1, pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers with which the district does business, and diversifying the investment portfolio so that the impact of potential losses from any one type of security or issuer will be minimized. As of June 30, 2009, the district’s investment in Georgia Fund I (investment pool) was rated AAAm by Standards & Poor’s. Concentration of credit risk is the risk of loss attributed to the magnitude of the district’s investment in a single issuer. The district’s policy allows 100% of its portfolio to be invested in U.S. Treasury Obligations, Obligations of the U.S. Government agencies, or the State sponsored local government investment pool. The district limits its investment portfolio to 50% for investments in Repurchase Agreements collateralized by U.S. Government Securities, Certificates of Deposit, and Money Market Mutual funds. No more than the greater of $10


D-23

million or 25% of the total portfolio for Certificates of Deposit may be placed with any one financial institution and 100% of the investments in Repurchase Agreements may be placed with any one financial institution. The Georgia Fund I (investment pool) investments are excluded from concentration of credit risk.

B. Receivables

Receivables as of year end for the district’s individual major and nonmajor funds, including the applicable allowances for uncollectible accounts, are as follows:

NonmajorGeneral ESPLOST Governmental Total

Receivables: Taxes 21,214,823$ 6,020,637$ 27,028$ 27,262,488$ Interest 14,572 28,984 - 43,556 Accounts 457,939 6,795,050 7,252,989 Intergovernmental 28,595,772 2,759 28,598,531

50,283,106$ 6,049,621$ 6,824,837$ 63,157,564$ Less: Allowance for uncollectibles (254,578) (324) (254,902) Net total receivables 50,028,528$ 6,049,621$ 6,824,513$ 62,902,662$

The only receivables not expected to be collected within the subsequent fiscal year are $3.2 million of taxes receivable in the General Fund. Notes receivable not expected to be collected within the subsequent fiscal year approximates $2.6 million. In the General fund, significant components of intergovernmental receivables include $15,660,599 from the State of Georgia for Quality Basic Education (QBE) formula grants and $12,935,173 from the Chatham County Tax Commissioner. The non-major (debt service fund) intergovernmental receivable of $2,759 is due from the Chatham County Tax Commissioner. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows:


D-24

Unavailable Unearned

Property tax receivable (General Fund) 17,309,912$ -$ Property tax receivable (Other governmental funds) 20,343 - Lost & Damaged textbook deposits (General Fund) - 27,844 Unearned grant revenue - 1,708 Donated USDA commodities not yet consumed (Other governmental funds) - 148,580

Note receivable (Capital Projects fund) 3,375,000 - Total deferred/unearned revenue for governmental funds 20,705,255$ 178,132$

Grants and other receivables (reported in General and Non-major governmental funds) primarily represent funds due to the district for reimbursement of expenditures/expenses incurred as of year-end under grant terms. The note receivable, which bears 3 percent annual interest and annual principal payments of $375,000 through the year 2017, represents the balance on the 1998 sale of Wilder Middle School property.

C. Property Taxes

Chatham County bills and collects property taxes for the Board of Education. Property taxes are levied (assessed) on all taxable real, public utility and personal property (including vehicles) located within the County as of January 1st of each year. Assessed values for property tax purposes are determined by the Chatham County Board of Tax Assessors for all property except public utilities and motor vehicles. Assessed value is set at 40% of market value. Public utility assessed values are established by the State of Georgia. Property is appraised and a lien on such property becomes enforceable 60 days after final notification on delinquency of property taxes. Taxes are due and payable when billed by the Chatham County Tax Commissioner. Chatham County may place liens on property once the related tax payments become delinquent.


D-25

The property tax calendar is as follows: Event DateBeginning of fiscal year for taxes January 1, 2009Vehicle personal property tax bills rendered January 1, 2009First installment real property tax bills rendered (based on prior year tax digest) April 1, 2009Delinquency date - vehicle personal property taxes Taxpayer's birthdayFirst installment real property tax payment due date June 1, 2009Millage rate approved July 22, 2009Second installment real property tax bills and presonal property tax bills rendered October 10, 2009Second installment real property tax bills and personal property tax payments due date December 10, 2009Tax sales - delinquent real property taxes and other assessments Various

D. Capital Assets Balance Balance

June 30, 2008 Increases Decreases June 30, 2009Capital Assets, not being depreciated: Land 17,812,843$ 2,362,266$ -$ 20,175,109$ Construction in progress 7,197,221 11,191,745 (13,030,305) 5,358,661 Total capital assets, not being depreciated 25,010,064 13,554,011 (13,030,305) 25,533,770

Capital assets, being depreciated: Building and improvements 397,353,120 8,129,930 (210,092) 405,272,958 Equipment 81,509,016 6,948,541 (11,325,746) 77,131,811 Total capital assets, being depreciated 478,862,136 15,078,471 (11,535,838) 482,404,769

Less accumulated depreciation for: Buildings and improvements (98,415,562) (8,074,647) 2,984 (106,487,225) Equipment (60,523,235) (7,549,753) 10,931,561 (57,141,427) Total accumulated depreciation (158,938,797) (15,624,400) 10,934,545 (163,628,652)

Total capital asset, being depreciated, net 319,923,339 (545,929) (601,293) 318,776,117

Governmental activities capital assets, net 344,933,403 13,008,082 (13,631,598) 344,309,887


D-26

Depreciation expense was charged to functions/activities of the primary government as follows: Governmental activities:

Instruction 11,363,741$ Pupil services 24,904 Instructional Services 99,302 Educational media services 37,486 General administration 663,114 School administration 29,675 Business administration 17,089 Maintenance and operations 522,776 Pupil transportation 1,844,125 Central support services 861,507 Food service operations 160,681

Total depreciation expense - governmental activities 15,624,400$

E. Capital Leases

The district has entered into several capital lease agreements as lessee for financing the acquisition of buses and certain other equipment. Principal and interest payments under capital leases having remaining terms in excess of one year as of June 30, 2009 are as follows:

Fiscal Year Capital Ending June 30, Leases

2010 2,187,846$ 2011 2,121,923 2012 1,658,053 2013 1,226,801 2014 831,687 2015 278,823

Total minimum lease payments 8,305,133 Less: amount representing interest (765,383) Present value of future minimum lease payments 7,539,750$

The following schedule shows the book value of these assets.

Capital AssetsUnder

Capital Leases

Equipment 16,906,354$ Less: accumulated depreciation (9,035,886) Total 7,870,468$


D-27

F. Long-term Debt

The following schedule summarizes the district’s long-term debt issues, including interest rates, original debt, and balance at year end.

Interest Original BalanceRates Debt June 30, 2009

General Obligation Bonds: Refunded Series 1998A 3.0% - 4.4% 24,025,000$ 6,075,000$ Refunded Series 1998B 3.0% - 5.0% 25,990,000 6,875,000 Refunded Series 2002 2.5% - 5.25% 39,950,000 37,545,000 Refunded Series 2004 5.0% - 5.25% 45,525,000 37,390,000

Total General Obligation Bonds 135,490,000 87,885,000

Contractual Obligation: Refunding Series 2002 2.2% - 3.25% 12,110,000 3,250,000

Total Contractual Obligations 12,110,000 3,250,000

Capital Leases: GMA Lease Supplement M variable (1) 2,382,413 - GMA Lease Supplement N 3.26% 1,240,437 539,298 GMA Lease Supplement O 3.37% 693,119 422,217 GMA Lease Supplement P/Q 3.42% 2,122,239 1,595,117 GMA Lease Supplement 300-6 variable (1) 2,869,324 819,808 GMA Lease Supplement 300-7 variable (1) 1,239,000 - GMA Lease Supplement 300-8 variable (1) 1,474,032 600,142 GMA Lease Supplement 300-9 variable (1) 1,767,205 1,009,831 GMA Lease Supplement 300-10 variable (1) 1,280,358 914,542 GMA Lease Supplement 300-11 variable (1) 1,911,928 1,638,795

Total Capital Leases 16,980,055 7,539,750 Total Debt Issues 164,580,055$ 98,674,750$

Interest rate note (1) - interest rate based on current market rate The general obligation bonds and contractual obligation were issued for the construction and major renovation of the district’s facilities.


D-28

Requirements to Maturity - General Obligation Debt

Year Principal Interest

2010 10,655,000$ 4,054,001$ 2011 11,375,000 3,551,712 2012 5,745,000 3,150,596 2013 6,185,000 2,890,525 2014 6,585,000 2,604,440

2015-2019 39,990,000 7,278,167 2020-2023 7,350,000 305,551

87,885,000$ 23,834,992$

Requirements to Maturity - Contractual Obligations

Year Principal Interest

2010 1,600,000 78,025 2011 1,650,000 26,812

3,250,000$ 104,837$

Changes in Long-term Debt

Balance Balance Due WithinJuly 1 , 2008 Additions Retirements June 30, 2009 One Year

General Obligation Bonds 97,915,000$ -$ 10,030,000$ 87,885,000$ 10,655,000$

Contractual Obligations 4,805,000 - 1,555,000 3,250,000 1,600,000

Capital Leases 10,095,787 - 2,556,038 7,539,749 1,890,782

Sub total 112,815,787 - 14,141,038 98,674,749 14,145,782

Compensated Absences 7,239,387 2,952,871 4,084,063 6,108,195 447,576

Sub total 120,055,174 2,952,871 18,225,101 104,782,944 14,593,358

Deferred Amounts:

Deferred charges on refunding (1,922,330) - (281,110) (1,641,220) -

Bond premium 3,716,093 - 367,412 3,348,681 -

Total 121,848,937$ 2,952,871$ 18,311,403$ 106,490,405$ 14,593,358$

In prior years, compensated absences have been typically liquidated with General Fund resources.


D-29

G. Interfund Receivables, Payables, and Transfers

The composition of interfund balances as of June 30, 2009 is as follows: Receivable Fund Payable Fund Amount

General Other governmental 405,216$

Total due to / from other funds 405,216$

These balances represent loans between the borrower fund and the lender fund. These balances resulted from the time lag between the dates that 1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system, and 3) payments between funds are made. Interfund receivables and payables are reported in the fund financial statements. However, they are eliminated in the district-wide financial statements if the interfund loan is between governmental funds. Interfund receivables and payables are expected to be repaid within one year.

Transfer InGeneral Non-Major

Transfer Out: Fund Governmental Total

General Fund -$ 5,946,138$ 5,946,138$ ESPLOST 14,538,110 14,538,110 Other Governmental Funds 905,000 905,000 Total Transfers out 905,000$ 20,484,248$ 21,389,248$

Interfund transfers are used to 1) move revenues from the fund that statute or budget requires collecting them to the fund that statute or budget requires to expend them, 2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and 3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Transfers of this type are recorded as other financing uses and other financing sources in the governmental funds financial statements. However, they are eliminated in the district-wide financial statements if the interfund transfer is within the governmental fund group. The following are the significant interfund transfers that occurred in FY09: 1) Transferred $14,538,110 from the ESPLOST fund to the debt service fund to

cover general obligation bond payments 2) Transferred $4,179,845 from the general fund to the debt service fund for the

payment of capital leases and other contractual obligations 3) Transferred $1,766,293 from the general fund to the middle/high school

athletic funds and to other special program funds


D-30

III. OTHER NOTES

A. Other Postemployment Benefits

Plan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (“GRHBF”), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department of Community Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 of the Official Code of Georgia Annotated, the authority to establish and amend the benefit provisions of the plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department of Community Health at 2 Peachtree Street, Atlanta, Georgia 30303. Funding 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 25% of the cost of health insurance coverage. Participating 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, 2009, were as follows: Teachers 0%-18.53% of state-based salariesNon-Certificated Employees $162.72 per month The District’s contribution to the health insurance plans for the fiscal year ended June 30, 2009 was $21,211,495, which equaled the required contribution.

B. Retirement Plans Teachers’ Retirement System

Plan Description. The district contributes to the Teachers’ Retirement System of Georgia (TRS), a cost - sharing, multiple - employer defined benefit pension plan administered by the TRS Board of Trustees. TRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Title 47, Chapter 3 of the Official Code of Georgia Annotated, assigns the authority to establish and amend benefit provisions to the


D-31

TRS Board of Trustees. The TRS Board of Trustees issues a publicly available financial report that includes financial statements and required supplementary information for TRS. That report may be obtained by writing to TRS of Georgia, Two Northside 75, Suite 400, Atlanta GA 30331, or by calling 1-800-352-0650. Funding Policy. Plan members are required to contribute 5% of their annual covered salary and the district is required to contribute at an actuarially determined rate. The current rate is 9.28% of annual covered payroll. The contribution requirements of plan members and the district are established and may be amended by the TRS Board of Trustees. The district’s contributions to TRS for the years ended June 30, 2009, 2008, and 2007 were $18,129,601, $17,031,442, and $15,875,402, respectively, equal to the required contributions for each year. Employees’ Retirement System Lunchroom personnel, and maintenance and custodial personnel are covered by the Public Employees’ Retirement System of Georgia (ERS), a defined contribution plan. The district is not legally required and did not contribute to ERS, which is fully funded by the state and by employee contributions. The State contribution to the school system was $99,943, which represents 0.89% of covered payroll. The employees made the required contribution of $18,996, which is statutorily determined at $4 per employee per month. The contribution represented 0.17% of covered payroll. All full-time lunchroom personnel, maintenance, and custodial personnel are covered and must participate in ERS as mandated by the State. Under the pension plan, benefits vest after 10 years of full-time employment. An employee with 10 years of service may retire at age 65 and receive full retirement benefits. Employees covered by the pension plan must contribute a fixed monthly amount to the pension plan. The State is required to make actuarially determined contributions that maintain the financial integrity of the retirement system. See Note III.E for information related to the recognition of revenues and expenditures during the period. The district’s total fiscal year 2009 payroll for all of its employees was $222,576,249. The amount of its fiscal year 2009 payroll covered by the pension plan was $11,204,336.

C. Contingencies and Commitments

The district is involved in a number of legal matters, which either have or could result in litigation. In the opinion of district management after consultation with legal counsel, the ultimate outcome of these contingencies will not have a material impact on the financial position of the district.


D-32

The district participates in a number of Federal Financial assistance programs, including the National School Lunch Program and the School Breakfast Program, the Title VIB Special Education, The Title I Part A Improving the Academic Achievement of the Disadvantaged Program, Title II Part A Improving Teacher Quality, and the Assistance for Education for All Children with Disabilities Program. Although the district’s grant programs have been audited in accordance with the provisions of the Single Audit Act Amendments of 1996 through June 30, 2009, these programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the district expects such amounts, if any, to be immaterial. The district is committed under outstanding construction contracts in the ESPLOST fund in the amount of $46,458,699. Construction contracts include new school construction and expansion or renovation of existing facilities. These commitments are included in the ESPLOST fund reserve for encumbrances at June 30, 2009.

D. Risk Management

The district is exposed to various risks of loss for claims associated with torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees, natural disasters, and unemployment compensation. There were no significant reductions in insurance coverage from coverage in the prior year. Settled claims have not exceeded the commercial excess coverage in any of the past three fiscal years. Self Insurance The district is self-insured for the risks associated with unemployment compensation and workers compensation. The district has established a separate fund for accounting for workers compensation risk financing. A contribution to the fund is calculated on the basis of .47% of each salary dollar. Liabilities of this fund are reported when it is probable a loss has occurred and the amounts can be reasonably estimated including amounts for claims incurred but not yet reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are


D-33

another component of the claims liability estimate. An excess coverage insurance policy covers individual claims up to statutory limits. The district also self-insures unemployment claims. These liabilities were immaterial at June 30, 2009. Changes in the balances of claims liabilities for the workers’ compensation fund during fiscal years 2007, 2008, and 2009 were as follows:

Claims and Beginning of Changes in Balance at Fiscal Year Current Year Claim Fiscal

Fiscal Year Liability Liability Payments Year End

2007 822,760$ 235,107$ 632,791$ 425,076$ 2008 425,076 1,519,092 640,027 1,304,141 2009 1,304,141 434,754 631,305 1,107,590

The fiscal year-end liability is calculated by a third party administrator considering the effects of inflation and recent claim settlement trends including frequency and amount of pay-outs as previously described. Risk Pool The district has elected to be a member of the Georgia School Boards Association Risk Management Fund (GSBA-RMF), an interlocal risk management agency created under Georgia law. Coverage for losses arising from certain liability and property risks to the district is provided through a group self-insurance plan. For accounting purposes, this plan is considered to be a Risk Transfer Pool. Under this plan, the district is responsible for the first $25,000 of each property loss, the first $1,000 of auto physical damage loss, and for the first $10,000 of each school leader’s liability claim. The plan assumes certain risks of the district in excess of the stated retentions up to certain customary coverage limits. The district is required to make a financial contribution to the plan each year in an amount that is determined on the basis of actuarial projections of losses. Management of GSBA-RMF has informed the district had maximum outstanding liability of $156,000 within the loss retentions stated in the preceding paragraph. Management of GSBA-RMF has also informed the district that there is a possibility of additional contribution liability in the event that the plan is terminated or the district elects to withdraw prematurely. No amount has been recorded in the financial statements due to the belief that plan termination is unlikely and withdrawal by the district is not contemplated.


D-34

Changes in the balances of claims liabilities for the risk pool fund during fiscal years 2007, 2008 and 2009 were as follows:

Claims and Beginning of Changes in Balance at Fiscal Year Current Year Claim Fiscal

Fiscal Year Liability Liability Payments Year End

2007 36,000$ 14,000$ -$ 50,000$ 2008 50,000 - 39,000 11,000 2009 11,000 145,000 156,000

Risk Transfer The district transfers the risk from all other risks through the use of commercially purchased insurance.

E. On-Behalf Payments

The district has recognized revenues and expenditures in the amount of $2,064,103 for health insurance and retirement contributions paid on the district’s behalf by the following State Agencies. Georgia Department of Education Paid to Georgia Department of Community Health for Health Insurance of Non-certified Personnel 1,887,427$

Paid to the Teachers Retirement System of Georgia (TRS) for the TRS Employer's Cost 76,733$

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System (ERS) For the ERS Employer's Cost 99,943$

2,064,103$ F. Special Item

The District recognized one special item in the financial statements for FY09. This related to payments due to the Department of Community Health, which provides the health insurance plan for District employees. Beginning in early 2001, an issue arose concerning the calculation of the amount due for the employer contribution to the state health plan. The District paid the amount billed following an audit by the Department of Community Health and recorded


D-35

additional liabilities in FY04 and FY05 in anticipation of additional audits or claims. However no such claims or audits have been asserted regarding this issue, so the District reversed the liability in the current financial statements. The reversal of the liability has been treated as a special item since the transaction was within management’s control and infrequent in occurrence.

G. Restatement

There were several prior period adjustments that involved restating beginning net assets and fund balance to properly accrue sales tax revenue, adjust QBE state revenue receivable and reclassify the risk pool fund from the internal service fund to the general fund, which are summarized as follows:

Internal Government-wideGeneral Fund ESPLOST Fund Service Funds Net Assets

Accrue Sales Tax revenue -$ 9,672,180$ -$ 9,672,180$

Adjust accrual for State Grant revenue (529,210) - - (529,210)

Reclassify Risk Pool Fund 1,113,039 - (1,113,039) -

Total restatement 583,829 9,672,180 (1,113,039) 9,142,970

Beginning balances 32,670,494 62,959,236 1,890,106 353,741,349

Restated beginning balances 33,254,323$ 72,631,416$ 777,067$ 362,884,319$

Governmental and Internal Service FundsFund Balance / Net Assets

E - 1

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A

Description

Required supplementary information other than MD&A is presented in accordance with GASB Statement No. 34. It contains budget and actual comparison schedules for the School District’s major governmental funds with annual appropriated budgets (General Fund). The notes to the required supplementary information disclose relevant budgetary information.

VARIANCEACTUAL POSITIVE

ORIGINAL FINAL AMOUNTS (NEGATIVE)REVENUES

Property taxes 163,198,690$ 160,198,690$ 164,175,645$ 3,976,955$ State funds 127,859,523 112,350,340 110,453,491 (1,896,849) Federal funds 1,001,685 3,843,999 3,913,508 69,509 Other local funds 3,155,000 2,155,000 1,622,320 (532,680)

Total revenues 295,214,898 278,548,029 280,164,964 1,616,935


Instruction 193,387,009 185,283,730 187,256,753 (1,973,023) Pupil services 16,463,296 14,978,444 14,756,775 221,669 Instructional services 4,594,768 4,313,744 3,681,212 632,532 Educational media services 5,629,439 5,558,787 5,469,735 89,052 General administration 5,353,998 5,497,002 4,928,654 568,348 School administration 20,583,672 19,709,778 19,385,604 324,174 Business administration 2,540,609 10,759,950 9,087,858 1,672,092 Maintenance and operations 26,494,372 25,718,866 24,548,188 1,170,678 Pupil transportation 18,283,176 18,075,255 16,699,985 1,375,270 Central support services 4,740,255 5,173,834 4,601,012 572,822 Other support services 0 3,885 3,857 28

Capital outlay 1,194,139 1,961,786 1,190,168 771,618 Total expenditures 299,264,733 297,035,061 291,609,801 5,425,260

Excess (deficiency) of revenues over(under) expenditures (4,049,835) (18,487,032) (11,444,837) 7,042,195

OTHER FINANCING USESTransfers in 0 905,000 905,000 0Transfers out (7,568,506) (5,946,138) (5,946,138) 0Sale of assets 1,450,000 1,450,000 0 (1,450,000)

Total other financing uses (6,118,506) (3,591,138) (5,041,138) (1,450,000)

SPECIAL ITEM 0 9,993,143 9,993,143 0

Net change in fund balances (10,168,341) (12,085,027) (6,492,832) 5,592,195

Fund balances, beginning * 33,254,323 33,254,323 33,254,323 0

Fund balances, ending 23,085,982$ 21,169,296$ 26,761,491$ 5,592,195$

* As Restated.

BUDGETED AMOUNTS



GENERAL FUND BUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA

See Independent Auditors' Report. E - 2

E-3

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION ON BUDGETARY ACCOUNTING AND CONTROL YEAR ENDED JUNE 30, 2009 BUDGETARY INFORMATION I. Budgets and Budgetary Accounting Annual budgets are adopted on a basis consistent with generally accepted

accounting principles. Formal budgetary integration is employed as a management control device during the year for the General Fund. The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is at the fund level.

Supplemental appropriations and decreases in budget appropriations were properly

approved by the School District. For the year ended June 30, 2009, the following supplemental and decrease in appropriations were approved.

Original Supplemental Supplemental FinalFund Type Appropriations Appropriations Decreases Appropriations

General 306,833,239$ 4,081,870$ 7,933,910$ 302,981,199$

SUPPLEMENTARY DATA – COMBINING FUND FINANCIAL STATEMENTS AND SCHEDULES

F-1

SPECIAL REVENUE FUNDS:

Description

Special revenue funds are used to account for revenues received from other governmental agencies or locally generated revenues that are legally restricted to expenditures for specified purposes. The following funds are included in the special revenue funds category: High School Athletics Consistent with the philosophy of financial independence of the

district athletic programs, this fund was established to provide accounting for the high school athletic programs of the district.

Middle School Athletics Consistent with the philosophy of financial independence of the

district athletic programs, this fund was established to provide accounting for the middle school athletic programs of the district.

Special Programs This fund was established to provide accounting for certain special

programs that are funded for distinct program objectives. Psychological Education This fund was established to provide accounting of federal

categorical grants flowing through the Department of Education, State of Georgia for the purpose of providing specialized educational treatment for emotionally disturbed students.

Adult Education This fund was established to provide accounting of categorical grant

funds from the Department of Technical And Adult Education, State of Georgia, accounting and federal categorical grants funds and accounting for locally and tuition provided funds for the purpose of providing secondary education to adult clients.

Title I This fund was established to provide accounting of federal

categorical grant funds flowing through the Department of Education, State of Georgia, for the propose of providing remedial education in the areas of reading and math.

Title VIB This fund was established to provide accounting of federal

categorical grant funds flowing through the Department of Education, State of Georgia, for the purpose of providing special education programs for handicapped students.

School Food Service This fund was established to provide accounting of the district’s

School Food Service operations. OTHER CAPITAL PROJECTS FUNDS are used to account for financial resources to be used for the acquisition for construction of major capital facilities. DEBT SERVICE FUND is used to account for resources accumulated for the payment of long-term debt principle and interest.

NONMAJOR GOVERNMENTAL FUNDS

High School Middle School Special Psychological AdultAthletics Athletics Programs Education Education

ASSETS

Cash and investments 69,140$ 165,772$ 711,372$ 101,698$ 76,286$ Receivables 0 0 3,077,676 362,176 0Inventories 0 0 0 0 0Other current assets 300 0 130,035 0 0Restricted cash and investments 0 0 0 0 0Note receivable 0 0 0 0 0

Total assets 69,440$ 165,772$ 3,919,083$ 463,874$ 76,286$

LIABILITIES AND FUND BALANCES

LIABILITIESAccounts payable and contracts payable 32,620$ 5,274$ 456,794$ 1,193$ 0$ Salaries and benefits payable 0 0 1,757,137 440,613 0Due to other funds 0 0 0 0 0Deferred revenue 0 0 1,708 0 0Payable from restricted assets-

Accounts payable and contracts payable 0 0 0 0 0Total liabilities 32,620 5,274 2,215,639 441,806 0

FUND BALANCESReserved for:

Inventories 0 0 0 0 0Debt service 0 0 0 0 0

Total reserved fund balances 0 0 0 0 0Unreserved:

Designated for: Next fiscal year 0 0 0 0 0

Undesignated, reported in:Special revenue 36,820 160,498 1,703,444 22,068 76,286Capital projects 0 0 0 0 0

Total unreserved fund balances 36,820 160,498 1,703,444 22,068 76,286

Total fund balances 36,820 160,498 1,703,444 22,068 76,286

Total liabilities and fund balances 69,440$ 165,772$ 3,919,083$ 463,874$ 76,286$

Special Revenue Funds

NONMAJOR GOVERNMENTAL FUNDS


COMBINING BALANCE SHEET JUNE 30, 2009


See Independent Auditors' Report. F - 2

School Food Other CapitalTitle I Title VIB Service Project Funds Debt Service Total

0$ 1,269,408$ 2,038,151$ 0$ 1,992,347$ 6,424,174$ 3,293,848 37,485 23,866 0 29,462 6,824,513

0 0 297,024 0 0 297,02441,235 0 0 0 0 171,570

0 0 0 7,564,693 0 7,564,6930 0 0 3,375,000 0 3,375,000

3,335,083$ 1,306,893$ 2,359,041$ 10,939,693$ 2,021,809$ 24,656,974$

722,733$ 7,909$ 294,798$ 0$ 0$ 1,521,321$ 1,961,198 1,229,784 947,258 0 0 6,335,990

405,216 0 0 0 0 405,2160 0 148,580 3,375,000 20,333 3,545,621

0 0 0 50,338 0 50,3383,089,147 1,237,693 1,390,636 3,425,338 20,333 11,858,486

0 0 148,444 0 0 148,4440 0 0 0 2,001,476 2,001,4760 0 148,444 0 2,001,476 2,149,920

0 0 0 137,119 0 137,119

245,936 69,200 819,961 0 0 3,134,2130 0 0 7,377,236 0 7,377,236

245,936 69,200 819,961 7,514,355 0 10,648,568

245,936 69,200 968,405 7,514,355 2,001,476 12,798,488

3,335,083$ 1,306,893$ 2,359,041$ 10,939,693$ 2,021,809$ 24,656,974$


CHANGES IN FUND BALANCES

High School Middle School Special Psychological AdultAthletics Athletics Programs Education Education

REVENUESProperty taxes 0$ 0$ 0$ 0$ 0$ State sources 0 0 6,899,712 2,971,949 0Federal sources 0 0 7,334,705 217,412 0Charges for services 208,523 20,297 44,460 0 0Local and other funds 2,412 3,685 529,168 0 0

Total revenues 210,935 23,982 14,808,045 3,189,361 0


Instruction 0 0 9,058,744 2,163,192 0Pupil services 633,042 127,069 945,764 656,380 0Instructional services 0 0 3,589,191 331,541 0Educational media services 0 0 3,875 0 0General administration 0 0 711,410 33,040 0School administration 0 0 178,557 0 0Business administration 0 0 0 0 0Maintenance and operations 0 0 240,208 4,000 0Pupil transporation 0 0 330,336 357 0Central support services 0 0 20,814 0 0Other support services 0 0 21,909 0 0Food service operations 0 0 35,100 0 0

Debt Service:Principal 0 0 0 0 0Interest and other charges 0 0 0 0 0

Capital Outlay 29,207 18,602 1,358,746 851 0

Total expenditures 662,249 145,671 16,494,654 3,189,361 0

Excess (deficiency) of revenues over (under) expenditures (451,314) (121,689) (1,686,609) 0 0

OTHER FINANCING SOURCES (USES)Transfers in 409,400 131,550 1,225,343 0 0Transfers out 0 0 (905,000) 0 0Capital lease - refinancing proceeds 0 0 0 0 0Capital lease - repayment 0 0 0 0 0Collections of note receivable 0 0 0 0 0

Total other financing sources 409,400 131,550 320,343 0 0

Net change in fund balances (41,914) 9,861 (1,366,266) 0 0

Fund balances, beginning 78,734 150,637 3,069,710 22,068 76,286

Fund balances, ending 36,820$ 160,498$ 1,703,444$ 22,068$ 76,286$

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIANONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND



School Food Other CapitalTitle I Title VIB Service Project Funds Debt Service Total

0$ 0$ 0$ 0$ 0$ 0$ 0 0 640,070 0 0 10,511,731

14,536,953 7,079,139 11,142,788 0 0 40,310,9970 0 2,864,715 0 0 3,137,9950 0 87,709 176,741 70 799,785

14,536,953 7,079,139 14,735,282 176,741 70 54,760,508

8,890,974 5,120,846 0 0 0 25,233,7560 1,671,983 0 0 0 4,034,238

4,279,831 89,583 0 0 0 8,290,1460 0 0 0 0 3,875

637,292 180,968 0 0 0 1,562,7100 0 0 0 0 178,5570 0 0 0 0 00 0 0 0 0 244,208

16,806 0 0 0 0 347,4990 0 0 0 0 20,814

326,351 0 0 0 0 348,2600 0 16,129,586 0 0 16,164,686

0 0 0 0 14,141,038 14,141,0380 0 0 0 4,836,309 4,836,309

385,699 15,759 164,772 584,908 0 2,558,544

14,536,953 7,079,139 16,294,358 584,908 18,977,347 77,964,640

0 0 (1,559,076) (408,167) (18,977,277) (23,204,132)

0 0 0 0 18,717,955 20,484,248 0 0 0 0 0 (905,000) 0 0 0 0 3,193,471 3,193,471 0 0 0 0 (3,193,471) (3,193,471) 0 0 0 487,500 0 487,500

0 0 0 487,500 18,717,955 20,066,748

0 0 (1,559,076) 79,333 (259,322) (3,137,384)

245,936 69,200 2,527,481 7,435,022 2,260,798 15,935,872

245,936$ 69,200$ 968,405$ 7,514,355$ 2,001,476$ 12,798,488$




Charges for services 276,900$ 276,900$ 208,523$ (68,377)$ Other 0 0 2,412 2,412

Total revenues 276,900 276,900 210,935 (65,965)


Pupil services 671,300 672,300 633,042 39,258 Capital outlay 15,000 14,000 29,207 (15,207)

Total expenditures 686,300 686,300 662,249 24,051

Deficiency of revenues under expenditures (409,400) (409,400) (451,314) (41,914)

OTHER FINANCING SOURCES (USES)Transfers in 409,400 409,400 409,400 0

Total other financing sources (uses) 409,400 409,400 409,400 0

Net change in fund balances 0 0 (41,914) (41,914)

Fund balances, beginning 78,734 78,734 78,734 0

Fund balances, ending 78,734$ 78,734$ 36,820$ (41,914)$


BUDGETED AMOUNTS


SPECIAL REVENUE FUNDS- HIGH SCHOOL ATHLETICS BUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA




Charges for services 26,400$ 26,400$ 20,297$ (6,103)$ Other 0 0 3,685 3,685

Total revenues 26,400 26,400 23,982 (2,418)


Pupil services 149,950 149,950 127,069 22,881 Capital outlay 8,000 8,000 18,602 (10,602)

Total expenditures 157,950 157,950 145,671 12,279

Excess (deficiency) of revenues over (under) expenditures (131,550) (131,550) (121,689) 9,861

OTHER FINANCING SOURCES (USES)Transfers in 131,550 131,550 131,550 0

Total other financing sources (uses) 131,550 131,550 131,550 0

Net change in fund balances 0 0 9,861 9,861


Fund balances, ending 150,637$ 150,637$ 160,498$ 9,861$


BUDGETED AMOUNTS


SPECIAL REVENUE FUNDS- MIDDLE SCHOOL ATHLETICS BUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA




State sources 6,939,973$ 7,537,706$ 6,899,712$ (637,994)$ Federal sources 9,503,736 10,377,932 7,334,705 (3,043,227) Charges for services 145,835 145,835 44,460 (101,375) Other 587,214 735,799 529,168 (206,631)

Total revenues 17,176,758 18,797,272 14,808,045 (3,989,227)


Instruction 9,738,523 10,770,195 9,058,744 1,711,451 Pupil services 859,546 926,178 945,764 (19,586) Instructional services 4,871,301 4,645,958 3,589,191 1,056,767 Educational media services 0 9,213 3,875 5,338 General administration 175,515 799,890 711,410 88,480 School administration 229,206 204,117 178,557 25,560 Business administration 140,030 26 0 26 Maintenance and operations 175,666 242,588 240,208 2,380 Pupil transportation 328,776 362,174 330,336 31,838 Central support services 16,500 84,477 20,814 63,663 Other support services 396,287 262,592 21,909 240,683 Food service operations 32,300 36,855 35,100 1,755

Capital outlay 698,180 1,765,386 1,358,746 406,640 Total expenditures 17,661,830 20,109,649 16,494,654 3,614,995

Deficiency of revenues under expenditures (485,072) (1,312,377) (1,686,609) (374,232)

OTHER FINANCING SOURCES (USES)Transfers in 1,061,072 1,225,343 1,225,343 0Transfers out 0 (905,000) (905,000) 0

Total other financing sources (uses) 1,061,072 320,343 320,343 0

Net change in fund balances 576,000 (992,034) (1,366,266) (374,232)

Fund balances, beginning 3,069,710 3,069,710 3,069,710 0

Fund balances, ending 3,645,710$ 2,077,676$ 1,703,444$ (374,232)$

BUDGETED AMOUNTS



SPECIAL REVENUE FUNDS- SPECIAL PROGRAMSBUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA




State sources 3,013,714$ 2,971,949$ 2,971,949$ 0$ Federal sources 328,367 376,413 217,412 (159,001)

Total revenues 3,342,081 3,348,362 3,189,361 (159,001)


Instruction 2,192,695 2,275,897 2,163,192 112,705Pupil services 697,353 685,448 656,380 29,068Instructional services 342,597 339,092 331,541 7,551General administration 32,075 42,574 33,040 9,534Business administration 66,687 0 0 0Maintenance and operations 0 4,000 4,000 0Pupil transportation 500 500 357 143Central support services 0 0 0 0Other support services 8,958 0 0 0

Capital outlay 1,216 851 851 0Total expenditures 3,342,081 3,348,362 3,189,361 159,001

Net change in fund balances 0 0 0 0


Fund balances, ending 22,068$ 22,068$ 22,068$ 0$


BUDGETED AMOUNTS


SPECIAL REVENUE FUNDS- PSYCHOLOGICAL EDUCATION BUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA




Federal sources 16,912,040$ 16,872,466$ 14,536,953$ (2,335,513)$ Total revenues 16,912,040 16,872,466 14,536,953 (2,335,513)


Instruction 10,990,005 10,457,441 8,890,974 1,566,467 Instructional services 4,512,719 4,614,244 4,279,831 334,413 General administration 559,985 724,418 637,292 87,126 Pupil transportation 199,812 53,882 16,806 37,076 Other support services 407,125 420,293 326,351 93,942

Capital outlay 242,394 602,188 385,699 216,489 Total expenditures 16,912,040 16,872,466 14,536,953 2,335,513




BUDGETED AMOUNTS



SPECIAL REVENUE FUNDS- TITLE IBUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA




Federal sources 9,986,252$ 7,500,603$ 7,079,139$ (421,464)$ Total revenues 9,986,252 7,500,603 7,079,139 (421,464)


Instruction 7,819,932 5,478,007 5,120,846 357,161 Pupil services 1,127,142 1,773,769 1,671,983 101,786 Instructional services 309,179 64,494 89,583 (25,089) Educational media services 0 0 0 0General administration 519,811 184,333 180,968 3,365 School administration 9,688 0 0 0Business administration 0 0 0 0Maintenance and operations 200,000 0 0 0Pupil transportation 500 0 0 0Central support services 0 0 0 0Other support services 0 0 0 0

Capital outlay 0 0 15,759 (15,759) Total expenditures 9,986,252 7,500,603 7,079,139 421,464





BUDGETED AMOUNTS


SPECIAL REVENUE FUNDS- TITLE VI BBUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA




State sources 886,416$ 886,416$ 640,070$ (246,346)$ Federal sources 10,188,577 11,429,842 11,142,788 (287,054) Charges for services 2,324,776 2,324,776 2,864,715 539,939Other 30,001 88,214 87,709 (505)

Total revenues 13,429,770 14,729,248 14,735,282 6,034


Food service operations 14,247,095 16,215,593 16,129,586 86,007 Capital outlay 90,000 90,000 164,772 (74,772)

Total expenditures 14,337,095 16,305,593 16,294,358 11,235

Net change in fund balances (907,325) (1,576,345) (1,559,076) 17,269


Fund balances, ending 1,620,156$ 951,136$ 968,405$ 17,269$

BUDGETED AMOUNTS



SPECIAL REVENUE FUNDS- SCHOOL FOOD SERVICEBUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA




Property taxes 0$ 0$ 0$ 0$ Other 2,000 2,000 70 (1,930)

Total revenues 2,000 2,000 70 (1,930)

EXPENDITURESDebt services:

Principal retirements 13,682,300 14,141,038 14,141,038 0Interest and fiscal charges 5,037,655 4,943,690 4,836,309 107,381 Total expenditures 18,719,955 19,084,728 18,977,347 107,381

Excess (deficiency) of revenuesover (under) expenditures (18,717,955) (19,082,728) (18,977,277) 105,451

OTHER FINANCING USESTransfers in 18,717,955 18,717,955 18,717,955 0Capital lease - refinancing 0 3,193,471 3,193,471 0Capital lease - repayment 0 (3,193,471) (3,193,471) 0

Total other financing uses 18,717,955 18,717,955 18,717,955 0

Net change in fund balances 0 (364,773) (259,322) 105,451


Fund balances, ending 2,260,798$ 1,896,025$ 2,001,476$ 105,451$


BUDGETED AMOUNTS


SPECIAL REVENUE FUNDS- DEBT SERVICEBUDGETARY COMPARISON SCHEDULEAND THE COUNTY OF CHATHAM, GEORGIA


F-14

Description

Internal service funds are used to account for services furnished by a designated department to other departments within the district. Amounts expended by the fund are restored to it either from operating earnings or by transfers from other funds, so that the original fund activity is kept intact. The following funds are included in the internal service funds category: Workers’ Compensation Fund This fund was established to provide accounting

for the self-insured workers’ compensation claims activity of the Board of Education.

Employee Dental Plan Fund This fund was established to provide accounting

for the Self-supporting direct reimbursement dental plan for employees.

Unemployment Compensation Fund This fund was established to provide accounting

for the self-insured unemployment compensation claims activity of the Board of Education.

INTERNAL SERVICE FUNDS

Workers' Employee Unemployment Compensation Dental Plan Compensation Total

ASSETS

Current assets: Cash and cash equivalents 1,439,167$ 294,930$ 120,190$ 1,854,287$

Total assets 1,439,167$ 294,930$ 120,190$ 1,854,287$

LIABILITIES

Current liabilities:Accounts payable 107,024$ 6,357$ 34,426$ 147,807$ Other liabilities 1,108,881 0 0 1,108,881

Total liabilities 1,215,905 6,357 34,426 1,256,688

NET ASSETS Unrestricted 223,262 288,573 85,764 597,599

Total net assets 223,262$ 288,573$ 85,764$ 597,599$

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIACOMBINING STATEMENT OF NET ASSETSINTERNAL SERVICE FUNDSJUNE 30, 2009


Workers' Employee UnemploymentCompensation Dental Plan Compensation Total

OPERATING REVENUESRisk management fees 988,779$ 1,101,765$ 0$ 2,090,544$

Total operating revenues 988,779 1,101,765 0 2,090,544

OPERATING EXPENSES Risk management 1,111,688 1,088,366 101,138 2,301,192

Total operating expenses 1,111,688 1,088,366 101,138 2,301,192Operating income (loss) (122,909) 13,399 (101,138) (210,648)

NON-OPERATING REVENUES Interest and investment revenue 28,327 0 2,853 31,180

Change in net assets (94,582) 13,399 (98,285) (179,468)

Total net assets, beginning 317,844 275,174 184,049 777,067Total net assets, ending 223,262$ 288,573$ 85,764$ 597,599$

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIACOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET ASSETSINTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2009


Workers' Employee UnemploymentCompensation Dental Plan Compensation Total

CASH FLOWS FROM OPERATING ACTIVITIESCash received for services and fees 988,779$ 1,101,765$ 0$ 2,090,544$ Cash paid for supplies and insurance (1,219,970) (1,087,591) (66,712) (2,374,273)

Net cash provided by (used in) operating activities (231,191) 14,174 (66,712) (283,729)

CASH FLOW FROM INVESTING ACTIVITIES Investment income 28,327 0 2,853 31,180

Net cash provided by (used in) investing activities 28,327 0 2,853 31,180

Increase (decrease) in cash and cash equivalents (202,864) 14,174 (63,859) (252,549)Cash and cash equivalents, beginning of year 1,642,031 280,756 184,049 2,106,836 Cash and cash equivalents, end of year 1,439,167$ 294,930$ 120,190$ 1,854,287$

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIACOMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2009


F-18

Description

Agency funds are used to account for assets held by the Board of Education on behalf of outside parties, or on behalf of other funds within the Board. The following funds are included in the agency funds category: Flex One Fund This fund was established to provide accounting for funds

withheld from employees that are used to pay for dependent care under Section 125 of the IRS code.

Student Activity Fund This fund was established to provide accounting for student

activity fund receipts and disbursements.

FIDUCIARY FUNDS

Student Activity Flex One Fund Funds Total

ASSETSCash and investments (2,817)$ 1,076,728$ 1,073,911$

Total assets (2,817)$ 1,076,728$ 1,073,911$

LIABILITIESDue to student groups 0$ 1,076,728$ 1,076,728$ Other liabilities (2,817) 0 (2,817)

Total liabilities (2,817)$ 1,076,728$ 1,073,911$

JUNE 30, 2009

FIDUCIARY FUNDS (AGENCY FUNDS)COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

THE BOARD OF EDUCATION FOR THE CITY OF SAVANNAHAND THE COUNTY OF CHATHAM, GEORGIA


Balance BalanceJuly 1, 2008 Increases Decreases June 30, 2009

FLEX ONE FUND

ASSETSCash and investments 30,435$ 306,850$ 340,102$ (2,817)$

Total assets 30,435$ 306,850$ 340,102$ (2,817)$

LIABILITIESOther liabilities 30,435$ 306,850$ 340,102$ (2,817)$

Total liabilities 30,435$ 306,850$ 340,102$ (2,817)$

STUDENT ACTIVITY FUNDS

ASSETSCash and investments 1,012,963$ 3,024,216$ 2,960,451$ 1,076,728$

Total assets 1,012,963$ 3,024,216$ 2,960,451$ 1,076,728$

LIABILITIESDue to student groups 1,012,963$ 3,024,216$ 2,960,451$ 1,076,728$

Total liabilities 1,012,963$ 3,024,216$ 2,960,451$ 1,076,728$

TOTAL

ASSETSCash and investments 1,043,398$ 3,331,066$ 3,300,553$ 1,073,911$

Total assets 1,043,398$ 3,331,066$ 3,300,553$ 1,073,911$

LIABILITIESDue to student groups 1,012,963$ 3,024,216$ 2,960,451$ 1,076,728$ Other liabilities 30,435 306,850 340,102 (2,817)

Total liabilities 1,043,398$ 3,331,066$ 3,300,553$ 1,073,911$


AGENCY FUNDSCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AND THE COUNTY OF CHATHAM, GEORGIATHE BOARD OF EDUCATION FOR THE CITY OF SAVANNAH


F-21

Description

The Schedule of Allotments and Expenditures by Programs are presented to demonstrate compliance with the Quality Basic Education Act as required by the State of Georgia, Department of Education. The Schedule of Approved Local Option Sales Tax Projects is presented to demonstrate legal compliance of Sales Tax imposed for Educational Purposes.

SUPPLEMENTAL SCHEDULES


SCHEDULE OF ALLOTMENTS AND EXPENDITURES – BY PROGRAMGENERAL FUND – QUALITY BASIC EDUCATION PROGRAMS

Allotments From

Departmentof Education

Amount Salaries Operations TotalGeneral and Career Education Programs Kindergarten $ 13,261,552 $ 14,864,865 $ 259,212 $ 15,124,077 Kindergarten EIP 1,483,852 1,721,323 11,883 1,733,206 Grades 1-3 27,553,158 40,388,994 1,025,452 41,414,446 Grades 1-3 EIP 2,522,372 3,453,141 25,691 3,478,832 Sub-total K-3 44,820,934 60,428,323 1,322,239 61,750,562

Grades 4-5 12,030,200 13,867,417 610,072 14,477,488 Grades 4-5 EIP 2,063,414 2,517,322 12,879 2,530,201 Middle Grade 6-8 420,812 508,380 3,506 511,887 Middle School 6-8 19,048,552 23,026,932 1,961,068 24,987,999 Grades 9-12 17,082,167 20,213,492 1,729,798 21,943,290 Vocational Education Laboratories 5,015,385 4,813,707 376,683 5,190,389 Total General and Career Education Programs 100,481,464 125,375,572 6,016,245 131,391,817

Special Education Programs Category I 7,147,436 7,716,691 164,308 7,880,999 Category II 2,126,628 2,296,003 48,888 2,344,891 Category III 14,815,756 15,995,751 340,591 16,336,342 Category IV 2,355,878 2,543,511 54,158 2,597,669 Category V 768,667 829,887 17,670 847,558 Gifted Education 11,662,531 12,385,140 215,944 12,601,084 Special Ed. Itinerant 15,958 - Special Ed. Supplemental Speech 17,775 - Total Special Education Programs 38,910,629 41,766,982 841,560 42,608,542

English for Speakers of Other Languages 650,751 900,970 1,392 902,362

Remedial Education Programs 2,266,212 1,868,712 80,455 1,949,167

Alternative Education Programs 1,544,016 1,791,017 37,769 1,828,785

Media Center Programs 3,957,982 4,831,900 504,519 5,336,419

Staff Development Programs 800,741 - 505,616 505,616

Nurses 531,257 2,027,586 - 2,027,586

Principal Supplement 0 0 - 0

20 Days Additional Instruction 1,136,660 1,204,529 0 1,204,529

Grand Total $ 150,279,712 $ 179,767,268 $ 7,987,555 $ 187,754,823

Note: The Austerity Reduction of $3,025,385 is not reflected in the above information.

Direct Instructional Expenditures

FOR THE FISCAL YEAR ENDED JUNE 30, 2009

F-22


SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Amount AmountOriginal Current Expended Expended

Estimated Estimated in Current in Prior ProjectCost Cost Year Years Status

For the purpose of acquiring, constructing,and equipping new facilities for:Beach HS, Butler ES, Gadsden ES,Godley Station K8, a new High School,Oglethorpe Charter, & Pulaski ES 195,768,543 195,368,543 5,198,720 96,975 Active

For the purpose of constructingadditions and other modifications to:Heard ES, Hesse ES, Howard ES,Isle of Hope ES, Largo-Tibet ES, Low ES,Mercer MS, White Bluff ES, Windsor Forest ES,Windsor Forest HS 18,380,418 18,788,593 503,481 19,784 Active

For the conversion of Tompkins MSto a Technical Career HS 4,250,000 4,250,000 2,403,597 1,004,082 Active

Oatland Island renovations and upgrades 5,196,488 5,196,488 469,826 - Active

Massie Heritage Ctr renovations and upgrades 441,025 841,025 75,419 - Active

Existing site upgrades district-wide for:ADA Requirements, Classroom Furniture,Electrical, Flooring, Food Service Equipment,HVAC, Painting, Plumbing, Roofing, Security,Safety & Fencing, Local School Requests,Signage 41,346,860 39,447,709 2,341,851 572,806 Active

Payment of principal and interest on theschool district's general obligation bonds 67,372,185 67,372,185 14,538,110 14,304,765 Active

Academic technology upgrade - district-wide 30,000,000 20,000,000 2,842,532 3,297,870 Active

Program management 6,000,000 6,000,000 1,438,911 807,438 Active

368,755,519$ 357,264,543$ 29,812,447$ 20,103,720$

Project

FOR THE FISCAL YEAR ENDED JUNE 30, 2009

F-23

G-1

STATISTICAL SECTION This part of the comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the district’s overall financial health. Contents

Page

Financial Trends

G-2

These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time.

Revenue Capacity

G-8

These schedules contain information to help the reader assess the district’s most significant local revenue source, the property tax.

Debt Capacity

G-15

These schedules present information to help the reader assess the affordability of the district’s current levels of outstanding debt and the district’s ability to issue additional debt in the future.

Demographic and Economic Information

G-20

These schedules offer demographic and economic indicators to help the reader understand the environment within which the district’s financial activities take place.

Operating Information

G-22

These schedules contain service and infrastructure data to help the reader understand how the information in the district’s financial report relates to the services the district provides and the activities it performs.

G-2

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA NET ASSETS LAST EIGHT FISCAL YEARS ACCRUAL BASIS OF ACCOUNTING

2002 2003 2004 2005 2006GOVERNMENTAL ACTIVITIES

Invested in capital assets,net of related debt 189,783,983$ 198,093,328$ 201,091,525$ 204,250,078$ 208,430,752$

Restricted 24,334,113 14,397,406 13,385,284 14,612,823 20,176,911 Unrestricted 48,772,251 47,895,163 45,847,922 47,786,635 51,951,720

Total net assets 262,890,347$ 260,385,897$ 260,324,731$ 266,649,536$ 280,559,383$

Fiscal Year2007 2008 2009

GOVERNMENTAL ACTIVITIESInvested in capital assets,

net of related debt 219,296,443$ 230,873,163$ 244,503,936$ Restricted 23,828,222 63,660,957 110,449,803 Unrestricted 65,507,204 59,207,230 43,300,830

Total net assets 308,631,869$ 353,741,350$ 398,254,569$

Note: District implemented GASB 34 as of June 30, 2002. Information before that date is not available.

Fiscal Year

G-3

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA CHANGES IN NET ASSETS LAST EIGHT FISCAL YEARS ACCRUAL BASIS OF ACCOUNTING

Fiscal Year2002 2003 2004 2005

ExpensesGovernmental activities:

Instruction 176,110,588$ 180,654,884$ 182,938,870$ 189,028,323$ Support services:

Pupil services 12,209,637 12,568,745 12,297,300 13,645,718 Instructional services 4,490,802 6,289,015 9,983,138 11,599,777 Educational media services 5,052,629 4,740,810 4,812,489 4,847,531 General administration 4,530,943 4,415,306 6,160,584 6,118,412 School administration 15,417,611 15,785,477 15,937,975 16,626,138 Business administration 3,281,935 3,958,166 3,911,621 2,688,790 Maintenance and operations 20,683,765 23,072,497 22,580,491 22,713,699 Pupil transportation 11,184,193 11,876,452 12,215,463 13,848,193 Central support services 3,424,270 4,059,489 4,061,378 4,984,360 Other support services 95,728 143,652 376,715 310,679

Food services 13,314,595 12,772,864 12,738,485 12,442,533 Interest on long-term debt 8,310,748 7,375,449 7,080,184 6,571,172

Total Expenses 278,107,444 287,712,806 295,094,693 305,425,325

Program revenuesCharges for services

Instruction 277,918 210,170 171,665 187,282 Pupil services 225,585 234,586 355,873 274,079 Food services 3,681,222 3,580,418 3,549,804 3,447,074 Business administration

Operating grants and contributions 157,342,092 155,848,682 155,036,667 160,121,893 Capital grants and contributions 9,427,225 3,119,986 4,764,955 3,841,987

Total Program Revenues 170,954,042 162,993,842 163,878,964 167,872,315

Net (Expense) Revenue (107,153,402) (124,718,964) (131,215,729) (137,553,010)

General Revenues 119,179,038 119,222,783 136,055,561 141,071,011

restricted to specific programs 472,890 372,882 897,602 363,074 1,778,564 724,109 471,773 1,192,102

600,124 951,990 729,627 1,251,628

capital assets - 942,750 - -

Total general revenues 122,030,616 122,214,514 138,154,563 143,877,815

Change in Net Assets 14,877,214$ (2,504,450)$ 6,938,834$ 6,324,805$

NOTE: District implemented GASB 34 as of June 30, 2002. Information before that date is not available.

Property taxes

Grants and contributions notSpecial Purpose sales taxes

Special item - Health Insurance

Special item - Gain on sale of

Unrestricted investment earningsMiscellaneous

G-4

Fiscal Year2006 2007 2008 2009

195,656,892$ 212,938,826$ 228,032,301$ 224,717,046$

14,531,652 17,129,370 19,247,444 18,828,137 12,262,875 10,974,939 10,925,335 12,078,527 5,037,960 5,214,207 5,653,032 5,514,672 6,765,424 7,449,147 6,944,425 7,158,316

16,925,511 18,396,169 20,113,957 19,606,623 2,757,252 3,245,734 3,326,702 9,106,879

24,117,942 25,426,558 26,590,495 25,331,401 14,832,739 17,350,920 18,832,450 18,891,608 4,451,437 5,026,452 5,731,641 5,486,128

430,591 434,948 1,348,830 1,915,787 12,494,907 13,435,390 14,510,015 16,335,995 6,718,418 6,111,946 4,838,084 4,692,905

316,983,600 343,134,606 366,094,711 369,664,024

298,662 196,555 72,734 212,525 400,912 299,281 256,010 228,820

3,438,132 3,399,162 2,935,596 2,864,715 58,010

163,165,222 178,978,296 181,367,377 162,920,627 3,540,601 2,538,982 1,662,271 2,070,626

170,843,529 185,412,276 186,293,988 168,355,323

(146,140,071) (157,722,330) (179,800,723) (201,308,701)

155,495,924 161,721,966 155,956,005 166,800,618 18,677,142 62,716,886 56,938,503

367,631 464,488 937,103 991,371 2,162,726 3,254,124 3,391,835 1,528,577 2,023,637 1,677,096 920,261 426,739

- - 988,114 9,993,143

160,049,918 185,794,816 224,910,204 236,678,951

13,909,847$ 28,072,486$ 45,109,481$ 35,370,250$

G-5

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA FUND BALANCE OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS MODIFIED ACCRUAL BASIS OF ACCOUNTING

Fiscal Year2000 2001 2002 2003 2004

General FundReserved -$ -$ -$ -$ -$ Unreserved 23,058,090 33,317,810 31,616,640 30,026,615 29,296,562

Total General Fund 23,058,090$ 33,317,810$ 31,616,640$ 30,026,615$ 29,296,562$

ESPLOST FundReserved -$ -$ -$ -$ -$

Unreserved - - - - - Total ESPLOST Fund -$ -$ -$ -$ -$

Capital Projects FundReserved 11,421,678$ 12,908,366$ 11,301,944$ 3,156,751$ 548,013$

Unreserved 20,888,200 16,839,322 9,070,604 7,271,542 7,615,608 Total Capital Projects Fund 32,309,878$ 29,747,688$ 20,372,548$ 10,428,293$ 8,163,621$

Other Governmental Funds:Special Revenue Funds

Reserved 180,390$ 245,185$ 424,993$ 390,342$ 321,656$ Unreserved 7,410,741 5,601,108 5,137,339 3,519,155 4,552,071

Total Special Revenue Funds 7,591,131$ 5,846,293$ 5,562,332$ 3,909,497$ 4,873,727$

Debt Service FundReserved 1,119,918$ 890,513$ 2,347,166$ 1,915,110$ 3,016,442$ Unreserved - - - - 187,715

Total Debt Service Fund 1,119,918$ 890,513$ 2,347,166$ 1,915,110$ 3,204,157$

Fiscal Year2005 2006 2007 2008 2009

General FundReserved -$ -$ -$ -$ Unreserved 32,957,764 37,880,666 46,177,083 32,670,493 26,761,491

Total General Fund 32,957,764$ 37,880,666$ 46,177,083$ 32,670,493$ 26,761,491$

ESPLOST FundReserved -$ -$ -$ 8,319,853$ 46,458,699$

Unreserved - - 18,796,769 54,639,383 54,319,821 Total ESPLOST Fund -$ -$ 18,796,769$ 62,959,236$ 100,778,520$

Capital Projects FundReserved 129,745$ 514,383$ -$ -$

Unreserved 6,837,022 10,946,908 8,146,966 7,435,022 7,514,355 Total Capital Projects Fund 6,966,767$ 11,461,291$ 8,146,966$ 7,435,022$ 7,514,355$

Other Governmental Funds:Special Revenue Funds

Reserved 373,824$ 228,179$ 366,782$ 328,032$ 148,444$ Unreserved 5,767,625 6,623,777 6,855,697 5,912,020 3,134,213

Total Special Revenue Funds 6,141,449$ 6,851,956$ 7,222,479$ 6,240,052$ 3,282,657$

Debt Service FundReserved 4,424,521$ 5,197,484$ 1,367,960$ 2,260,798$ 2,001,476$ Unreserved - - - -

Total Debt Service Fund 4,424,521$ 5,197,484$ 1,367,960$ 2,260,798$ 2,001,476$

G-6

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS MODIFIED ACCRUAL BASIS OF ACCOUNTING

2000 2001 2002 2003REVENUES:

Property taxes 111,908,636$ 116,235,832$ 117,949,784$ 117,542,175$ Sales TaxesState sources 125,385,737 137,288,104 138,483,997 127,812,153 Federal sources 20,522,980 23,968,226 26,223,987 29,126,135 Charges for services 4,079,378 4,027,339 4,184,725 4,023,541 Other 5,941,058 5,700,447 5,521,073 4,801,397

Total revenues 267,837,789$ 287,219,948$ 292,363,566$ 283,305,401$

EXPENDITURES:Current

Instruction 145,883,342$ 155,858,713$ 167,257,203$ 171,531,211$ Pupil services 10,579,439 11,221,663 12,197,559 12,538,431 Instructional services 3,488,605 3,519,319 4,452,127 6,241,572 Educational media services 4,831,340 4,835,972 4,999,405 4,684,760 General administration 3,784,887 4,046,679 4,620,857 4,537,169 School administration 12,465,366 13,975,610 15,400,931 15,773,079 Business administration 4,245,528 4,177,690 3,247,152 3,940,625 Maintenance and operations 17,579,909 19,050,317 19,832,010 23,151,197 Pupil transportation 8,773,225 9,245,278 9,581,754 10,184,239 Central support services 2,539,035 2,411,242 2,985,126 3,120,051 Other support services 222,184 116,397 95,728 143,652 Food service operations 12,143,010 12,351,106 13,069,700 12,556,152

Debt service:Principal retirement 9,050,249 9,308,138 9,629,930 8,905,393 Interest and other charges 9,412,728 9,200,190 8,478,208 8,183,469

Capital outlay 36,096,357 24,769,092 28,801,907 13,328,597 Total expenditures 281,095,204$ 284,087,406$ 304,649,597$ 298,819,597$

Excess (Deficiency) of RevenuesOver (Under) Expenditures (13,257,415)$ 3,132,542$ (12,286,031)$ (15,514,196)$

OTHER FINANCING SOURCES (USES):Transfers in 23,596,843$ 15,227,034$ 11,409,754$ 4,660,094$ Transfers out (23,596,843) (15,227,034) (11,409,754) (4,660,094) Bond proceeds - - - - Refunding bonds issued - - - 52,060,000 Payment to refunded bond - - - (53,714,533)

escrow agentCapital lease - proceeds 2,786,456 2,590,745 2,382,413 - Capital lease - repaymentCollection of Notes ReceivablePremium on bond issuance - - - 2,244,558

Total other financing sources(uses) 2,786,456$ 2,590,745$ 2,382,413$ 590,025$

SPECIAL ITEMS:Health InsuranceSale of Capital Assets - - - 1,305,000

-$ -$ -$ 1,305,000$

NET CHANGE IN FUND BALANCES (10,470,959)$ 5,723,287$ (9,903,618)$ (13,619,171)$

Debt service as a percentage ofnoncapital expenditures 7.54% 7.14% 6.56% 5.99%

Fiscal Year

G-7

2004 2005 2006 2007 2008 2009

137,307,907$ 142,438,362$ 155,024,989$ 163,550,187$ 151,939,149$ 164,175,645$ 18,677,142 62,716,886 56,938,503

123,175,168 119,610,782 122,892,994 136,872,594 140,337,141 120,965,222 35,379,599 42,084,644 42,132,573 44,263,187 42,295,058 44,224,505 4,077,342 3,908,435 3,880,705 3,810,766 3,419,563 3,209,987 3,834,446 6,186,433 6,877,500 6,144,849 6,304,320 3,371,162

303,774,462$ 314,228,656$ 330,808,761$ 373,318,725$ 407,012,117$ 392,885,024$

172,221,146$ 177,152,974$ 183,895,373$ 201,474,869$ 215,468,974$ 214,348,160$ 12,263,180 13,549,574 14,420,894 16,988,680 19,069,994 18,791,013 9,885,249 11,419,473 12,061,941 10,792,606 10,751,357 11,971,358 4,748,568 4,771,889 4,965,643 5,141,009 5,571,038 5,473,610 6,145,458 6,213,575 6,095,296 6,757,419 6,721,699 6,491,364

15,876,569 16,500,813 16,791,883 18,238,618 20,058,965 19,564,161 3,886,044 2,648,842 2,713,076 3,197,797 3,146,731 9,087,858

22,179,192 22,097,193 23,543,798 24,820,529 25,973,440 24,792,396 10,440,634 11,651,418 12,493,498 15,086,553 16,677,697 17,047,484 2,821,445 3,860,865 3,402,260 3,777,485 4,492,465 4,621,826

376,715 310,679 359,078 404,578 1,318,831 1,915,339 12,538,973 12,223,579 12,267,760 13,180,633 14,228,697 16,164,686

10,228,343 11,583,509 15,425,129 16,458,529 17,014,625 14,141,038 7,087,926 7,348,945 6,558,174 6,168,306 5,470,764 4,836,309

10,924,792 9,635,044 6,309,386 11,529,585 12,903,569 15,602,177 301,624,234$ 310,968,372$ 321,303,189$ 354,017,196$ 378,868,846$ 384,848,779$

2,150,228$ 3,260,284$ 9,505,572$ 19,301,529$ 28,143,271$ 8,036,245$

9,084,363$ 8,527,296$ 16,034,271$ 11,865,443$ 25,144,924$ 21,389,248$ (9,084,363) (10,065,475) (17,099,271) (13,230,443) (27,444,924) (21,389,248)

- - - - - 45,525,000 - - - (48,298,200) - -

- 4,108,324 2,714,469 2,460,324 2,383,330 2,931,196 3,193,471

(3,193,471) 487,500

- 3,289,060 - - -

4,108,324$ 1,692,150$ 1,395,324$ 1,018,330$ 631,196$ 487,500$

9,993,143$ - - - - 1,079,877 - -$ -$ -$ -$ 1,079,877$ 9,993,143$

6,258,552$ 4,952,434$ 10,900,896$ 20,319,859$ 29,854,344$ 18,516,888$

5.96% 6.28% 6.98% 6.61% 6.14% 5.14%

Fiscal Year

G-8

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS

2000 2001 2002 2003Real and Personal 6,124,551,260$ 6,491,438,253$ 7,157,432,649$ 7,866,820,594$

Motor Vehicles 496,879,597 531,461,750 533,813,650 529,470,980

Mobile Homes 21,584,400 24,493,400 24,879,000 27,499,800

Timber 2,381,080 2,027,136 1,462,840 1,736,725

Heavy Duty Equip - 4,183,778 5,799,768 3,263,567

Gross Digest 6,645,396,337$ 7,053,604,317$ 7,723,387,907$ 8,428,791,666$

Less: Tax Exempt Real Property Bond 512,121,811$ 632,371,796$ 637,029,788$ 822,828,674$

Total Taxable Assessed Value - Bond 6,133,274,526$ 6,421,232,521$ 7,086,358,119$ 7,605,962,992$

Total Direct Tax Rate 2.460 2.397 2.224 1.810

Less: Tax Exempt Real Property M&O 576,719,611$ 791,058,952$ 953,143,919$ 1,253,718,699$

Total Taxable Assessed Value - M&O 6,068,676,726$ 6,262,545,365$ 6,770,243,988$ 7,175,072,967$

Total Direct Tax Rate 16.380 16.179 15.326 15.958

Estimated Actual Value 16,613,490,843$ 17,634,010,793$ 19,308,469,768$ 21,071,979,165$

Assessed Value as a Percentage ofActual Value 40% 40% 40% 40%

Source: Georgia Department of Revenue

G-9

2004 2005 2006 2007 2008 20098,507,109,822$ 9,619,207,743$ 11,244,344,033$ 12,894,532,528$ 13,958,123,170$ 13,931,316,675$

531,347,580 536,571,680 541,145,780 584,847,980 617,291,700 642,274,660

27,340,800 27,862,000 28,981,400 23,265,200 24,095,200 23,423,600

2,706,080 1,687,482 1,484,053 2,622,380 1,295,759 476,054

1,245,374 4,343,190 1,178,710 4,642,838 4,841,573 7,669,280

9,069,749,656$ 10,189,672,095$ 11,817,133,976$ 13,509,910,926$ 14,605,647,402$ 14,605,160,269$

893,752,932$ 949,456,845$ 1,015,847,404$ 1,110,580,527$ 1,217,813,110$ 1,281,598,393$

8,175,996,724$ 9,240,215,250$ 10,801,286,572$ 12,399,330,399$ 13,387,834,292$ 13,323,561,876$

1.722 1.531 1.306 - - -

1,460,414,274$ 1,702,009,135$ 2,089,523,640$ 2,453,125,475$ 2,636,427,510$ 2,455,183,953$

7,609,335,382$ 8,487,662,960$ 9,727,610,336$ 11,056,785,451$ 11,969,219,892$ 12,149,976,316$

15.878 15.746 14.511 13.795 13.404 13.404

22,674,374,140$ 25,474,180,238$ 29,542,834,940$ 33,774,777,315$ 36,514,118,505$ 36,512,900,673$

40% 40% 40% 40% 40% 40%

G-10

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS

Tax Year General Fund

Chatham Area Transit

Authority Total CountySchool M&O

1 School Bond Total School City State Total

2000 10.439 0.858 11.297 16.380 2.460 18.840 13.700 0.250 44.087

2001 10.367 0.853 11.220 16.179 2.397 18.576 13.500 0.250 43.546

2002 10.367 0.820 11.187 15.326 2.224 17.550 13.300 0.250 42.287

2003 10.367 0.820 11.187 15.958 1.810 17.768 13.300 0.250 42.505

2004 10.367 0.820 11.187 15.878 1.722 17.600 13.100 0.250 42.137

2005 11.037 0.820 11.857 15.746 1.531 17.277 12.900 0.250 42.284

2006 10.837 0.820 11.657 14.511 1.306 15.817 12.700 0.250 40.424

2007 10.537 0.820 11.357 13.795 - 13.795 12.500 0.250 37.902

2008 10.537 0.820 11.357 13.404 - 13.404 12.500 0.250 37.511

2009 10.537 0.820 11.357 13.404 13.404 12.500 0.250 37.511

Year Bloomingdale Garden City Pooler Wentworth Thunderbolt Tybee Island Vernonburg

2000 None None 4.220 3.700 6.840 4.760 None

2001 None None 4.000 2.740 6.840 4.656 None

2002 None None 3.910 2.618 6.540 4.471 None

2003 None None 3.669 2.525 6.700 4.174 None

2004 None None 4.250 4.500 6.470 4.117 None

2005 None None 4.071 4.498 6.080 4.117 None

2006 None None 4.500 4.498 6.080 3.800 None

2007 None None 4.392 4.498 6.080 3.738 None

2008 None None 4.500 4.498 6.080 3.738 None

2009 None None 4.500 4.397 6.119 3.738 None

1 School M&O is limited to 20 mils by state law

Source: District Records Georgia Department of Revenue

Other Municipalities

CountyCity of Savannah

School

G-11

General Fund

Special Service

Chatham Area Transit

Authority Total CountySchool M&O

1 School Bond Total School State Total

10.439 3.489 0.858 14.786 16.380 2.460 18.840 0.250 33.876

10.367 3.475 0.853 14.695 16.179 2.397 18.576 0.250 33.521

10.367 3.475 0.820 14.662 15.326 2.224 17.550 0.250 32.462

10.367 3.475 0.820 14.662 15.958 1.810 17.768 0.250 32.680

10.367 3.475 0.820 14.662 15.878 1.722 17.600 0.250 32.512

11.037 3.475 0.820 15.332 15.746 1.531 17.277 0.250 32.859

10.837 3.475 0.820 15.132 14.511 1.306 15.817 0.250 31.199

10.537 3.475 0.820 14.832 13.795 - 13.795 0.250 28.877

10.537 3.475 0.820 14.832 13.404 - 13.404 0.250 28.486

10.537 3.475 0.820 14.832 13.404 13.404 0.250 28.486

CountyChatham County, Unincorporated

School

G-12

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND PERIOD NINE YEARS PRIOR

Taxpayer Taxable

Assessed Value Rank

Percentage of Total Taxable

Assessed Value

Taxable Assessed Value Rank

Percentage of Total Taxable

Assessed Value

Gulfstream 475,710,130$ 1 4.23% 275,460,762$ 1 5.64%

International Paper 183,593,064 2 1.63%

Southern Energy 152,677,610 3 1.36%

Georgia Power (Savannah Electric) 102,029,170 4 0.91% 103,150,187 3 2.11%

Weyerhaeuser 78,521,326 5 0.70%

Wal-Mart 67,005,905 6 0.60%

Tronox Pigments 66,734,983 7 0.59%

Colonial Oil/Terminals/Chemicals 55,153,702 8 0.49%

Home Depot 45,385,252 9 0.40% 47,433,161 8 0.97%

Georgia Pacific 41,733,910 10 0.37%

Savannah Foods 48,327,457 6 0.99%

Union Camp 240,684,586 2 4.93%

Stone Savannah 31,598,600 10 0.65%

Kemira 71,361,125 4 1.46%

Southern Bell 47,449,130 7 0.97%

U.S. Prime Property, Inc. 32,011,952 9 0.66%

Savannah Teachers Prop., Inc. 58,429,500 5 1.20%

Total 1,268,545,052$ 11.28% 955,906,460$ 19.57%

Source: Chatham County Board of Assessors

2009 2000

G-13

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA PROPERTY TAX LEVIES AND COLLECTIONS – GENERAL FUND LAST TEN FISCAL YEARS

Total Collections to Date

Tax Year Taxes Levied for

the Year Amount Percentage of

Levy

Collections in Subsequent

Years Amount Percentage of Levy

2000 90,873,488 77,191,628 84.94% 13,681,860 90,873,488 100.00%

2001 92,226,447 79,173,341 85.85% 13,053,106 92,226,447 100.00%

2002 95,087,114 78,455,438 82.51% 16,616,764 95,072,202 99.98%

2003 105,532,239 91,519,327 86.72% 13,987,925 105,507,252 99.98%

2004 111,887,471 96,477,313 86.23% 15,380,550 111,857,863 99.97%

2005 124,664,925 109,281,843 87.66% 15,325,381 124,607,224 99.95%

2006 132,845,617 115,303,202 86.79% 17,433,655 132,736,857 99.92%

2007 144,039,210 124,067,526 86.13% 19,428,148 143,495,674 99.62%

2008 151,756,009 127,692,556 84.14% 18,232,353 145,924,909 96.16%

2009 153,826,083 (A) (A) (A) (A) (A)

(A) - Data is not yet available. The Tax Commissioner bills in two installments which are due June 1st and November 15th.

Note: Taxes are assessed for the calendar year on January 1st. The fiscal year begins six months later on July 1st and endson June 30th of the following year.

Source: Chatham County Tax Commisioner Office and District records

Collected within the Tax Year of the Levy

G-14

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA PROPERTY TAX LEVIES AND COLLECTIONS – DEBT SERVICE FUND LAST TEN FISCAL YEARS

Total Collections to Date

Tax Year Taxes Levied for

the Year AmountPercentage of

Levy

Collections in Subsequent

Years Amount Percentage of Levy

2000 13,806,573 12,054,242 87.31% 1,752,331 13,806,573 100.00%

2001 14,044,196 12,555,255 89.40% 1,488,941 14,044,196 100.00%

2002 14,501,396 12,181,115 84.00% 2,317,995 14,499,110 99.98%

2003 12,749,667 11,662,530 91.47% 1,083,845 12,746,375 99.97%

2004 13,110,205 11,963,316 91.25% 1,143,266 13,106,582 99.97%

2005 13,273,456 12,181,001 91.77% 1,086,418 13,267,419 99.95%

2006 13,358,422 12,115,819 90.70% 1,230,812 13,346,631 99.91%

2007 (A) N/A N/A N/A N/A N/A

2008 (A) N/A N/A N/A N/A N/A

2009 (A) N/A N/A N/A N/A N/A

(A) - No Debt Service taxes were levied for 2007-2009. The revenue from the Educational Sales Tax will be used to pay principal and interest on general obligation debt in the maximum amount of $67,500,000.

N/A - Not Applicable

Source: Chatham County Tax Commisioner Office and District records

Collected within the Tax Year of the Levy

G-15

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS

Fiscal Year

General Obligation

BondsContractual Obligations Capital Leases Total

Personal Income (in 000's) 1

Total Debt as a Percentage of

Personal Income 1 Per Capita 1

2000 158,105,000 26,080,000 8,488,582 192,673,582 6,458,690 2.98% 829.48

2001 153,130,000 25,020,000 7,806,189 185,956,189 6,652,635 2.80% 797.66

2002 147,160,000 23,915,000 7,633,672 178,708,672 6,847,289 2.61% 760.52

2003 141,615,000 23,260,000 6,348,279 171,223,279 7,125,558 2.40% 726.68

2004 134,450,000 21,835,000 8,818,260 165,103,260 7,566,250 2.18% 694.57

2005 124,350,000 20,415,000 9,174,219 153,939,219 8,106,019 1.90% 646.70

2006 116,085,000 15,240,000 9,649,415 140,974,415 8,804,027 1.60% 583.96

2007 107,295,000 10,035,000 9,569,218 126,899,218 9,407,040 1.35% 510.72

2008 97,915,000 4,805,000 10,095,787 112,815,787 N/A N/A 449.25

2009 87,885,000 3,250,000 7,539,750 98,674,750 N/A N/A N/A

1 Personal income and population - U.S. Department of Commerce - Bureau of Economic Analysis "Bearfacts"

N/A - Data not available

G-16

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS

Fiscal Year

General Obligation Bonds

Less: Amounts Available in Debt

Service Fund Total

Percentage of Estimated Actual Value of Property Per Capita 1

2000 158,105,000 1,119,918 156,985,082 0.94% 675.84

2001 153,130,000 890,513 152,239,487 0.86% 653.04

2002 147,160,000 2,347,166 144,812,834 0.75% 616.27

2003 141,615,000 1,915,110 139,699,890 0.66% 592.89

2004 134,450,000 3,204,157 131,245,843 0.58% 552.14

2005 124,350,000 4,424,521 119,925,479 0.47% 503.81

2006 116,085,000 5,197,484 110,887,516 0.38% 459.33

2007 107,295,000 1,367,960 105,927,040 0.31% 426.32

2008 97,915,000 2,260,798 95,654,202 0.26% 380.91

2009 87,885,000 2,001,476 85,883,524 0.24% N/A

1 Population - U.S. Department of Commerce - Bureau of Economic Analysis "Bearfacts"


G-17

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF JUNE 30, 2009

Debt Outstanding

Estimated Pecentage Applicable 1

Estimated Share of Outstanding Debt

Chatham County, Georgia:Downtown Savannah Authority (Chatham County Projects) Series 2005 18,265,000$ 100.00% 18,265,000$ Chatham County Public Health Facilities Projects 785,000 100.00% 785,000 Downtown Savannah Authority (Chatham County Projects) Series 1999 430,000 100.00% 430,000 Downtown Savannah Authority (Chatham County Projects) Series 2005A 5,975,000 100.00% 5,975,000 Mosquito Control Facility 4,166,343 100.00% 4,166,343

City of Savannah, Georgia:Downtown Savannah Authority (Stormwater Project) 18,490,000 100.00% 18,490,000 Downtown Savannah Authority (Capital Improvement Project) 14,330,000 100.00% 14,330,000 Downtown Savannah Authority (Parking Improvements) 24,820,000 100.00% 24,820,000 Resource Recovery Development Authority 29,340,000 100.00% 29,340,000

Total Overlapping Debt 116,601,343 116,601,343

Board of Public Education for Savannah and Chatham:General Obligation Bonded Debt 87,885,000 100.00% 87,885,000 Downtown Savannah Authority (Improvement Project) 3,250,000 100.00% 3,250,000

Total Direct Debt 91,135,000$ 91,135,000

Total Direct and Overlapping Debt 207,736,343$

1 Method: The entire population since the District resides within the boundaries of the City of Savannah or within the boundaries of Chatham County.Sources:

District recordsChatham County Finance DepartmentCity of Savannah Finance Department

Governmental Unit

G-18

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

2000 2001 2002 2003

6,133,274,526$ 6,421,232,521$ 7,086,358,119$ 7,605,962,992$

Debt Limit - 10% of Assessed Value 613,327,453$ 642,123,252$ 708,635,812$ 760,596,299$

Amount of Debt Applicable to Debt Limit:Total Bonded Debt 158,105,000$ 153,130,000$ 147,160,000$ 141,615,000$ Less assets in debt service funds 1,119,918 890,513 2,347,166 1,915,110

Debt Limit 156,985,082$ 152,239,487$ 144,812,834$ 139,699,890$

Unused Legal Debt Margin 456,342,371$ 489,883,765$ 563,822,978$ 620,896,409$

a percentage of debt limit 25.60% 23.71% 20.44% 18.37%

Net Assessed Valuation - County WideSchool Bonds - January 1,

Total Amount of Debt Applicable to

Total net debt applicable to the limit as

G-19

2004 2005 2006 2007 2008 2009

8,175,996,724$ 9,240,215,250$ 10,801,286,572$ 12,399,330,399$ 13,387,834,292$ 13,323,561,876$

817,599,672$ 924,021,525$ 1,080,128,657$ 1,239,933,040$ 1,338,783,429$ 1,332,356,188$

134,450,000$ 124,350,000$ 116,085,000$ 107,295,000$ 97,915,000$ 87,885,000$ 3,204,157 4,424,521 5,197,484 1,367,960 2,260,798 2,001,476

131,245,843$ 119,925,479$ 110,887,516$ 105,927,040$ 95,654,202$ 85,883,524$

686,353,829$ 804,096,046$ 969,241,141$ 1,134,006,000$ 1,243,129,227$ 1,246,472,664$

16.05% 12.98% 10.27% 8.54% 7.14% 6.45%

G-20

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS

Fiscal Year Population 1Personal Income

(in 000's) 1

Per Capita Personal Income Median Age 2

School Enrollment 3

Unemployment Rate 4

2000 232,281 6,458,690 27,806 34.5 42,880 4.20%

2001 233,126 6,652,635 28,537 34.5 42,764 4.00%

2002 234,981 6,847,289 29,140 34.5 42,118 5.00%

2003 235,624 7,125,558 30,241 34.7 41,903 5.40%

2004 237,705 7,566,250 31,830 34.7 41,615 5.00%

2005 238,039 8,106,019 34,053 34.9 41,571 5.20%

2006 241,411 8,804,027 36,469 35.0 41,225 4.60%

2007 248,469 9,407,040 37,860 34.7 40,520 4.20%

2008 251,120 N/A N/A 34.8 40,244 5.40%

2009 N/A N/A N/A N/A 41,152 8.70%


1 U.S. Department of Commerce - Bureau of Economic Analysis "Bearfacts"2 U. S. Bureau of the Census - Population Estimates Program3 District records - includes public and private school enrollment4 U.S. Department of Labor Bureau of Labor Statistics - June data not seasonally adjusted

G-21

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA PRIMARY EMPLOYERS CURRENT YEAR AND NINE YEARS AGO

Employer Employees Rank

Percentage of Total County Employment Employees Rank

Percentage of Total County Employment

Gulfstream Aerospace Corporation 6,024 1 3.92% 5,000 1/tie 3.62%

Memorial Health 4,643 2 3.02% 4,400 2 3.19%

Ft. Stewart/Hunter Army Airfield 4,285 3 2.79% 4,283 3 3.10%

Savannah‐Chatham County Board of Education 4,093 4 2.67% 5,000 1/tie 3.62%

St. Joseph's/Candler 3,304 5 2.15% 3,700 5 2.68%

Wal‐mart 2,935 6 1.91%

City of Savannah 2,500 7 1.63% 1,991 8 1.44%

Momentum Resources II, Inc. 1,703 8 1.11%

Savannah College of Art and Design 1,500 9/tie 0.98%

Chatham County 1,500 9/tie 0.98% 1,590 9 1.15%

Georgia‐Pacific Corporation 1,200 10 0.78% 1,400 10

State of Georgia 3,750 4 2.72%

Savannah International Airport 3,600 6 2.61%

International Paper 2,000 7 1.45%

Source: Chamber of Commerce publications

2009 2000

G-22

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA FULL-TIME EQUIVALENT GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN YEARS

2000 2001 2002 2003 2004Instruction 3,230.45 3,312.90 3,395.38 3,300.65 3,233.50Pupil services 197.15 205.00 208.02 209.00 209.00Instructional services 27.20 24.30 26.30 37.50 44.00Educational media services 98.00 97.50 99.00 92.00 92.00General administration 43.20 40.20 40.20 36.50 35.50Business administration 37.53 38.10 38.16 36.50 35.50School administration 238.00 243.00 248.00 247.50 247.50Pupil transportation 0.00 0.00 0.00 0.00 0.00Maintenance and operations 387.00 388.00 400.00 400.00 398.00Central support services 36.00 34.00 35.00 34.50 33.50Other support services 16.80 13.00 13.00 10.00 9.00Food service operations 352.00 352.00 365.00 380.00 378.50TOTAL 4,663.33 4,748.00 4,868.06 4,784.15 4,716.00

2005 2006 2007 2008 2009Instruction 3,246.00 3,254.87 3,346.39 3,465.18 3,535.40Pupil services 222.50 224.97 235.96 244.47 256.00Instructional services 64.04 68.04 74.99 77.48 76.00Educational media services 91.50 93.50 93.49 92.50 90.50General administration 36.46 41.96 38.98 39.48 16.00Business administration 34.50 34.50 35.50 35.50 37.00School administration 249.50 251.00 258.99 277.00 273.00Pupil transportation 0.00 0.00 1.00 1.00 1.00Maintenance and operations 399.00 399.00 399.00 427.60 447.00Central support services 39.50 41.50 47.00 42.25 68.00Other support services 9.00 8.00 9.00 7.00 7.00Food service operations 365.00 364.50 328.00 342.00 386.00TOTAL 4,757.00 4,781.84 4,868.30 5,051.46 5,192.90

Source: District records

G-23

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA OPERATING STATISTICS LAST TEN FISCAL YEARS

Fiscal Year Enrollment

Total Governmental

Activities Expense

Cost Per Student

Percentage Change

Teaching Staff

Student/ Teacher

Ratio

Free/ Reduced

Price Meal Eligibility

2000 36,093 N/A N/A N/A 2,569.25 14.05 50.72%2001 35,163 N/A N/A N/A 2,863.40 12.28 51.97%2002 34,631 278,107,444 8,031 N/A 2,896.87 11.95 52.73%2003 34,730 287,712,806 8,284 3.16% 2,818.95 12.32 53.59%2004 34,507 295,094,693 8,552 3.23% 2,750.50 12.55 55.21%2005 34,544 305,425,325 8,842 3.39% 2,791.60 12.37 57.95%2006 33,962 316,983,600 9,333 5.56% 2,826.54 12.02 61.04%2007 34,250 343,134,606 10,019 7.34% 2,915.04 11.75 60.10%2008 34,145 366,094,711 10,722 7.02% 3,024.15 11.29 59.00%2009 33,996 369,664,024 10,874 1.42% 3,053.90 11.13 61.85%

Source: District recordsN/A - Data not available

G-24

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA TEACHER DATA LAST TEN FISCAL YEARS

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009Teachers by Level of Education:

Level Four - Bachelor's 1,245.10 1,163.85 1,274.30 1,380.80 1,078.30 1,185.00 1,207.80 1,128.15 1,390.45 1,154.00degree or equivalent

Level Five - Master's 1,123.15 1,500.55 1,422.58 1,222.65 1,485.70 1,369.50 1,375.08 1,524.27 1,358.79 1,471.03degree or equivalent

Level Six - Education 158.50 154.00 147.00 159.00 128.00 179.00 181.98 203.14 218.43 352.89Specialist's or equivalent

Level Seven - Ph.D. or 19.50 21.00 29.49 37.50 40.50 41.10 46.48 41.48 37.48 54.98Ed.D or equivalent

Other 23.00 24.00 23.50 19.00 18.00 17.00 15.20 18.00 19.00 21.00TOTAL 2,569.25 2,863.40 2,896.87 2,818.95 2,750.50 2,791.60 2,826.54 2,915.04 3,024.15 3,053.90

Teachers by Salary Steps: 1

Step 0 1.00 21.00 7.50 1.00 3.00 1.50 1.00 2.00 7.00 199.00Step 1 - 5.00 219.50 - 1.00 9.00 0.00 14.00 2.00 98.50Step 2 - 8.00 26.50 - 2.00 7.00 0.00 1.00 0.00 47.50Step 3 233.90 165.40 46.50 427.50 259.00 304.00 313.60 271.50 408.30 202.60Step 4 140.80 133.60 119.50 135.50 127.50 128.00 165.00 160.50 126.00 210.00Step 5 264.90 120.50 130.50 105.20 104.50 138.90 107.75 150.20 435.20 113.50Step 6 91.60 99.00 126.00 112.50 101.50 115.20 137.50 317.85 125.00 133.50Step 7 72.30 624.50 109.00 287.70 599.50 328.80 336.05 224.50 125.50 132.20Step 8 109.50 83.00 90.99 109.50 97.50 111.90 96.30 109.50 131.90 129.30Step 9 118.00 92.50 476.65 86.50 85.00 110.10 111.40 89.50 109.50 147.50Step 10 103.50 105.65 87.65 68.50 67.70 88.50 106.40 100.10 90.50 105.00Step 11 90.50 80.50 95.85 87.75 57.50 75.50 92.25 108.50 99.60 85.50Step 12 72.30 85.50 86.00 89.00 79.50 61.90 75.10 91.30 101.50 101.00Step 13 69.00 65.00 88.20 84.40 80.00 86.60 57.00 67.50 80.50 107.50Step 14 63.75 69.00 65.10 84.10 69.00 79.50 85.90 50.50 63.50 90.50Step 15 63.00 60.75 70.00 61.50 76.00 77.00 83.99 92.49 52.50 70.00Step 16 56.20 60.00 62.05 73.00 51.00 79.80 80.75 72.00 78.49 57.50Step 17 71.30 47.00 57.49 62.00 65.50 60.00 77.60 77.00 79.00 85.50Step 18 65.50 66.00 51.00 57.60 48.00 72.60 57.00 73.90 73.00 70.00Step 19+20 649.10 618.00 631.80 659.40 544.00 205.80 150.90 134.80 129.50 156.50Step 21 2 409.90 434.53 494.14 502.41 465.73Step 25 233.10 253.50 249.09 226.30 231.80 240.10 256.52 212.26 203.25 245.57TOTAL 2,569.25 2,863.40 2,896.87 2,818.95 2,750.50 2,791.60 2,826.54 2,915.04 3,024.15 3,053.90

Average Salary $39,613 $40,718 $42,520 $43,003 $43,364 $44,535 $45,712 $47,347 $47,872 $49,631

Source: District records1 Salary Steps generally equal years of experience, although differences can occur.2 Step 21 was added to the salary scale in FY 2006.

G-25

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA TEACHER SALARY SCHEDULE LAST TEN FISCAL YEARS

Fiscal Year Minimum Maximum

2000 28,144 62,384 2001 28,934 64,044 2002 30,154 66,616 2003 31,075 68,554 2004 31,075 68,554 2005 31,465 70,635 2006 32,257 72,969 2007 33,475 75,613 2008 35,000 77,674 2009 35,815 79,443


*Minimum - T-4 Certification, Maximum - Doctorate

G-26

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA SCHOOL ENROLLMENT LAST TEN FISCAL YEARS

10th day 10th day 10th day 20th day 20th day 20th day 20th day 20th day 10th day 10th day2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Elementary Schools:Bartow 552 536 505 503 469 456 504 538 546 577 Bloomingdale 435 476 484 523 566 650 655 680 672 643 Butler 629 613 633 660 690 710 739 812 839 835 Coastal Empire Montessori - - - - - - - - - 110 East Broad 811 739 619 597 632 589 556 554 558 583 Ellis 389 451 497 549 541 524 523 544 553 555 Gadsden 617 523 583 594 673 674 619 613 581 618 Garden City 700 664 636 581 557 570 554 548 597 572 Garrison 741 696 630 609 583 569 530 453 432 392 Georgetown 564 603 599 610 698 663 609 661 672 666 Gould 765 758 646 590 533 546 505 547 577 649 Haven 401 418 376 356 350 373 354 415 417 408 Heard 504 467 527 562 573 582 594 664 651 679 Hesse 842 804 680 600 551 501 467 466 516 570 Hodge 564 544 533 517 467 409 398 417 375 421 Howard 933 911 802 712 662 634 619 639 621 654 Islands 778 699 632 590 743 727 629 659 715 741 Isle of Hope 671 628 606 596 531 518 466 462 433 484 J.G. Smith 380 355 422 394 391 413 412 402 390 414 Largo-Tibet 618 630 606 611 614 606 547 533 531 593 Low 666 630 612 642 593 551 515 495 515 513 Marshpoint 708 737 758 823 837 858 929 890 929 903 Pooler 496 490 438 372 357 362 352 367 418 460 Port Wentworth 443 458 451 399 303 340 339 387 501 603 Pulaski 491 526 503 510 547 495 450 482 561 626 Southwest 561 608 581 612 685 729 758 761 734 809 Spencer 441 398 381 354 494 487 550 561 551 415 Thunderbolt 669 682 679 650 682 671 689 656 624 521 West Chatham 402 451 501 534 577 624 672 727 780 915 White Bluff 843 832 777 819 776 723 701 669 565 591 Whitney 555 478 488 486 - - - - - - Windsor Forest 710 728 702 595 568 551 510 512 501 500

18,879 18,533 17,887 17,550 17,243 17,105 16,745 17,114 17,355 18,020

Middle Schools:Bartlett 903 833 790 842 802 799 719 563 545 483 Coastal 1,005 926 891 850 866 807 741 710 810 885 DeRenne 761 752 774 835 876 877 813 891 873 837 Hubert 568 561 511 528 521 488 471 435 369 264 Mercer 503 538 668 763 757 745 757 878 891 823 Myers 834 795 841 874 889 882 816 706 731 557 Oglethorpe 231 311 313 300 335 363 391 396 405 407 Shuman 687 692 757 795 720 786 784 825 725 649 Southwest 889 972 927 901 947 946 919 891 885 973 Tompkins 537 476 487 496 470 433 447 400 - - West Chatham 830 957 926 963 981 961 898 909 959 1,000

7,748 7,813 7,885 8,147 8,164 8,087 7,756 7,604 7,193 6,878


G-27

10th day 10th day 10th day 20th day 20th day 20th day 20th day 20th day 10th day 10th day2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

High Schools:Beach 1,552 1,485 1,333 1,300 1,259 1,253 1,254 1,156 1,051 980 Gateway to College - - - - - - - - - 62 Groves 1,238 1,102 1,223 1,334 1,378 1,494 1,597 1,590 1,478 1,287 Jenkins 1,692 1,546 1,513 1,620 1,656 1,717 1,610 1,691 1,763 1,563 Johnson 1,040 1,009 1,036 1,085 1,183 1,212 1,291 1,415 1,567 1,518 Savannah Arts 519 561 578 570 548 597 669 698 671 731 Savannah High 1,377 1,106 1,148 1,012 924 890 1,232 1,162 1,178 915 Windsor Forest 1,479 1,498 1,516 1,623 1,629 1,651 1,302 1,252 1,266 1,289

8,897 8,307 8,347 8,544 8,577 8,814 8,955 8,964 8,974 8,345

Other Educational Programs:Coastal Georgia

ComprehensiveAcademy 107 101 108 116 119 133 139 172 165 181

CorporateAcademies 150 146 143 138 138 124 114 111 154 51

Early College - - - - - - - - 91 140 New Alternative

Learning Center at Scott - - - - - - - 244 190 339

Oatland Island Intervention - 5 3 7 - - - - - -

Riley LearningCenter 63 73 77 77 82 61 61 - - -

Satellites 32 37 - - - - - - - - Scott Learning

Center 97 81 131 87 114 165 160 - - - Suspension/

Expulsion Program 61 - - - - - - - - -

TAPP 59 67 50 64 70 55 32 41 5 22 Woodville Tompkins Pre-K - - - - - - - - 18 20

569 510 512 489 523 538 506 568 623 753

36,093 35,163 34,631 34,730 34,507 34,544 33,962 34,250 34,145 33,996

Note: Enrollment changes daily. Over the last ten fiscal years, the 10th day of school, the 12th day of school, and the 20th day of school have been usedfor official enrollment reporting purposes.


G-28

THE BOARD OF PUBLIC EDUCATION FOR THE CITY OF SAVANNAH AND THE COUNTY OF CHATHAM, GEORGIA SCHOOL BUILDINGS AND OTHER FACILITIES LAST TEN FISCAL YEARS

GradesDate

occupied 1 Square footage 2 Acres 3 Capacity 42009

Enrollment 5

Percentage of capacity

used

Square footage

per student

Elementary Schools:Bartow Pre-K - 5 1963 61,342.0 16.23 532 577 108% 106.3 Bloomingdale Pre-K - 5 1963 54,247.0 10.89 444 643 145% 84.4 Butler Pre-K - 5 1963 58,413.0 14.78 452 835 185% 70.0 Coastal Empire Mont. Pre-K - 1 2008 Leased N/A N/A 110 N/A N/AEast Broad Pre-K - 5 1990 100,554.0 12.95 846 583 69% 172.5 Ellis Pre-K - 8 1929 53,136.0 0.60 500 555 111% 95.7 Gadsden Pre-K - 5 1955 53,811.0 3.42 438 618 141% 87.1 Garden City Pre-K - 5 1996 89,089.0 18.26 537 572 107% 155.8 Garrison7 Pre-K - 5 1991 111,105.0 4.57 918 392 43% 283.4 Georgetown Pre-K - 5 1993 89,089.0 22.97 758 666 88% 133.8 Gould Pre-K - 5 1956 80,730.0 16.98 755 649 86% 124.4 Haven Pre-K - 5 1963 54,069.0 9.51 466 408 88% 132.5 Heard Pre-K - 5 1957 45,907.0 7.85 395 679 172% 67.6 Hesse Pre-K - 6 1963 69,159.0 12.38 718 570 79% 121.3 Hodge Pre-K - 5 1957 50,430.0 15.01 395 421 107% 119.8 Howard Pre-K - 5 1958 76,008.0 15.01 752 654 87% 116.2 Islands Pre-K - 5 1992 100,554.0 10.46 850 741 87% 135.7 Isle of Hope Pre-K - 5 1957 61,890.0 9.78 492 484 98% 127.9 J.G. Smith K - 5 1951 49,672.0 6.07 404 414 102% 120.0 Largo-Tibet Pre-K - 5 1969 50,322.0 24.32 456 593 130% 84.9 Low Pre-K - 5 1957 53,272.0 9.57 585 513 88% 103.8 Marshpoint Pre-K - 5 1997 93,598.0 10.46 730 903 124% 103.7 Pooler K-5 1949 48,339.0 6.36 427 460 108% 105.1 Port Wentworth Pre-K - 5 1963 72,836.0 20.15 483 603 125% 120.8 Pulaski Pre-K - 5 1953 41,198.0 5.28 393 626 159% 65.8 Southwest K - 5 1999 88,282.0 42.76 771 809 105% 109.1 Spencer Pre-K - 5 1956 71,682.0 9.70 633 415 66% 172.7 Thunderbolt Pre-K - 5 1956 50,551.0 5.99 531 521 98% 97.0 West Chatham 6 K-5 1999 100,523.0 52.64 657 915 139% 109.9 White Bluff Pre-K - 5 1956 73,915.0 15.34 508 591 116% 125.1 Windsor Forest Pre-K - 5 1963 75,529.0 17.30 658 500 76% 151.1

TOTAL ELEMENTARY SCHOOLS 2,079,252.0 427.59 17,484 18,020 103% 115.4

Middle Schools:Bartlett 6-8 1962 121,486.0 13.13 1,036 483 47% 251.5 Coastal 6-8 1997 118,558.0 17.11 986 885 90% 134.0 DeRenne 6-8 2002 124,058.0 38.06 724 837 116% 148.2 Hubert 6-8 1960 88,770.0 9.49 716 264 37% 336.3 Mercer 6-8 1962 120,536.0 9.47 916 823 90% 146.5 Myers 6-8 2001 125,437.0 17.27 834 557 67% 225.2 Oglethorpe 6-8 1919 29,678.0 4.47 364 407 112% 72.9 Shuman 6-8 1963 117,862.0 14.13 968 649 67% 181.6 Southwest 6-8 1998 118,558.0 18.58 960 973 101% 121.8 West Chatham 6 6-8 1998 138,600.0 41.53 986 1,000 101% 138.6

TOTAL MIDDLE SCHOOLS 1,103,543.0 183.24 8,490 6,878 81% 160.4

G-29

GradesDate

occupied 1 Square footage 2 Acres 3 Capacity 42009

Enrollment 5

Percentage of capacity

used

Square footage

per student

High Schools:Beach 9-12 1959 189,734.0 21.87 1,392 980 70% 193.6 Gateway to College 9-12 2008 Housed at Savannah Tech N/A 62 N/A N/AGroves 9-12 1958 190,517.0 24.36 1,632 1,287 79% 148.0 Jenkins 9-12 1957 168,914 28.71 1,433 1,563 109% 108.1 Johnson 9-12 2001 195,524.0 27.35 1,148 1,518 132% 128.8 Savannah Arts 9-12 1937 135,989.0 7.49 600 731 122% 186.0 Savannah High 9-12 1998 244,410.0 51.37 1,443 915 63% 267.1 Windsor Forest 9-12 1967 154,043.0 24.62 1,369 1,289 94% 119.5

TOTAL HIGH SCHOOLS 1,279,131.0 185.77 9,017 8,345 93% 153.3

Other Educational Programs:Coastal Georgia

ComprehensiveAcademy Pre-K - 12 1967 34,432.0 5.77 N/A 181 N/A 190.2

Corporate Academies 9-12 1992 Housed at Savannah Tech N/A 51 N/A N/AEarly College 9-12 2008 Housed at WTTCI Annex N/A 140 N/A N/AScott Alternative

Learning Center K-12 2006 65,831.0 15.96 N/A 339 N/A 194.2 TAPP 6-12 2007 Housed at Savannah High N/A 22 N/A N/AWoodville Tompkins Pre-K 2007 Housed at WTTCI N/A 20 N/A N/A

TOTAL OTHER EDUCATIONAL PROGRAMS 100,263.0 21.73 N/A 753 N/A 133.2

Other Facilities:Central Office 1901 78,768.0 1.43 Maintenance/Warehouse 1965 49,608.0 54.58 Massie Heritage Center 1856 10,204.0 0.26 Oatland Island 1927 48,277.0 181.51 Pennsylvania Avenue 1945 25,468.0 1.33 Riley Learning Center 1915 26,088.0 0.63 Richard Arnold School

of Adult Education 1953 61,022.0 9.41 Rockingham Farms vacant land 19.74 WTTCI Annex 1967 59,500.0 5.56 Woodville Tompkins TCI 1998 122,995.0 16.04 Transportation Facility 1989 27,690.0 6.17 Whitney 1953 41,016.0 5.28

TOTAL OTHER FACILITIES 550,636.0 301.94

GRAND TOTAL 5,112,825.0 1,120.27 34,991 33,996 97%

1 District records2 Appraisal by CBIZ Valuation Group. Does not include portable classrooms.3 Chatham County Tax Assessor and district records4 2002 DeJong Associates, Inc., facility study and district records. Does not include portable classrooms.5 Enrollment as of 10th day of school, FY 2009. 6 West Chatham Elementary School and West Chatham Middle School had some additions to the square footage in FY08.7 Chatham County Public Schools sold .84 acres of Garrison Elementary to Noble L. Boykin, Jr.

Report - SCCPSS Annual...Leisure Magazine (Best Romantic Getaway), Outlook Magazine, Condé Nast Traveler, Family Fun Magazine, USA Weekend, Walking Magazine, and the Atlanta Journal.

Documents