COBB COUNTY SCHOOL DISTRICT SPLOST II Performance Audit

COBB COUNTY SCHOOL DISTRICT SPLOST II Performance Audit December 31, 2008 Allatoona High School 1

Cobb County School District SPLOST II Performance Audit December 31, 2008 PURPOSE Why are we doing this? – Legislation Enacted by State of Georgia in 2003 – Requires Performance Review or Audit when a School District Receives $5 Million or More Annually in SPLOST Revenues 2

Cobb County School District SPLOST II Performance Audit December 31, 2008 PURPOSE-Continued: – State Mandated Objectives of The Review or Audit • Determination if SPLOST Funds are Expended Efficiently and Economically • Issuance of Periodic Reports, at least annually, which conclude on whether or not the SPLOST Program Expenditures have been made in an efficient and economic manner. • Issuance of Public Recommendations, at least Annually, for improvements in meeting the goals described above. 3

Cobb County School District SPLOST II Performance Audit December 31, 2008 BACKGROUND SPLOST I – Approved by voters in 1998 and became effective in 1999 for five years through year 2003. SPLOST II- Approved by voters in 2003 and became effective in 2004 for five years through year 2008 4

Cobb County School District SPLOST II Performance Audit December 31, 2008 Revised Budget (in thousands) TOTAL $745, 237 5

Cobb County School District SPLOST II Performance Audit December 31, 2008 BUDGETED and EXPENDED FUNDS 6

Cobb County School District SPLOST II Performance Audit December 31, 2008 7

Cobb County School District SPLOST II Performance Audit December 31, 2008 AUDIT PROCEDURES – Performed in Accordance with Generally Accepted Government Audit Standards related to Performance Audits – Compared Expenditures to Projects Reflected in the Resolution Approving the SPLOST II Referendum and also the Projects Reflected in the “SPLOST II Notebook” 8

Cobb County School District SPLOST II Performance Audit December 31, 2008 AUDIT PROCEDURES-Continued: – Obtained and Reviewed Documented Policies, Procedures and Administrative Rules Relating to Contracts for Services, Change Orders, Purchasing and General Financial Procedures – Obtained and Reviewed Financial Reports Prepared by the Financial Services Division and Tested Expenditures Reflected in the Reports 9

Cobb County School District SPLOST II Performance Audit December 31, 2008 AUDIT PROCEDURES – Continued: – Conducted Interviews With: • School District Management and Staff – Visited Five Schools: • Allatoona High School • Awtrey Middle School • Brumby Elementary School • East Valley Elementary School • Mc. Eachern High School – Meeting With School District Management to Discuss Preliminary Results of Audit 10

Cobb County School District SPLOST II Performance Audit December 31, 2008 SUMMARY OF RESULTS As a Result of Our Audit Procedures, We Conclude that the Cobb County School District Expended SPLOST II Funds in an Efficient and Economical Manner: – In Compliance with the SPLOST II Resolution Approved May 2003 – SPLOST II Proceeds are Being Disbursed in a Fiscally Responsible Manner – Adequate Administrative and Accounting Controls Have Been Established to Ensure the Proper Management of Sales Tax Proceeds – Technology Related Expenditures are Reasonable Considering the Potential Volatile Market Environment for These Products – Investment of the SPLOST II Proceeds Were Conducted in a Sound Fiscal Manner 11

Cobb County School District SPLOST II Performance Audit December 31, 2008 NOTEWORTHY ACCOMPLISHMENTS – Committed 93% of Funds Budgeted for New Schools and 100% for Additions/ Renovations – Approximately 84% of SPLOST II funds have been Committed for all Categories – $636 million in Sales Tax Revenues were Budgeted for SPLOST II, $593 Million in Sales Tax Revenues have been Collected as of December 31, 2008 – Effective Budgeting and Management of the SPLOST II Program has resulted in all Major Projects Completed or Underway, with an Additional $77 Million of Uncommitted Funds in the General Contingency Category as of December 31, 2008 – Effective Policies and Procedures Relating to the Physical Security and Control of Laptop Computers 12