SPLOST PERFORMANCE REVIEW FOR FISCAL YEAR 2015 EXECUTIVE SUMMARY

Transcription

1 SPLOST PERFORMANCE REVIEW FOR FISCAL YEAR 2015 EXECUTIVE SUMMARY Submitted by: MGT of America, Inc.

2 GWINNETT COUNTY PUBLIC SCHOOLS SPLOST PERFORMANCE REVIEW FOR FISCAL YEAR 2015 TABLE OF CONTENTS: PAGE EXECUTIVE SUMMARY... 1 INTRODUCTION... 4 METHODOLOGY... 5 OVERVIEW OF SPLOST IV CONCLUSION... 14

3 EXECUTIVE SUMMARY In May 2013, the Gwinnett County Board of Education contracted with MGT of America, Inc., to conduct an Annual Special Purpose Local Option Sales Tax (SPLOST) Audit and Review for the school year and subsequent years of the SPLOST IV program. This report represents the third year of the SPLOST IV review and includes the school year, and examines the use of SPLOST IV funds during this period. The purpose of this annual audit and review is to analyze how the school system is spending funds provided by SPLOST IV and to verify compliance with the approved referendum and Georgia s Constitution and Code. SPLOST IV funds were authorized in a November 8, 2011, referendum approved by the voters of Gwinnett County. The referendum approved a maximum collection of $876 million in sales tax revenues from July 1, 2012, through June 30, The referendum included resources for the following: Developing sites for, constructing, and equipping new schools, support facilities, and athletic facilities. Making additions to, and/or renovating, equipping, and modernizing existing schools, support facilities, and athletic facilities. Purchasing and refurbishing school buses and other support vehicles. Making existing lease/purchase payments with respect to the acquisition of new and existing schools and support facilities. Modernizing technology and making system-wide technology improvements. Acquiring digital instructional materials, software, textbooks, and library materials. In addition, the voters also authorized the Board of Education to sell short-term general obligation bonds in the amount of $275 million to be repaid with SPLOST IV sales tax revenue. SPLOST IV funds became available to GCPS beginning in February 2012 with the sale of $242,840,000 in short-term general obligation bonds with principal and interest to be paid by the SPLOST IV program. Exhibit 1 provides a summary of the program to date revenues and expenditures for the SPLOST IV program. December 15, 2015 Page 1

4 EXHIBIT 1 SUMMARY OF REVENUES AND EXPENDITURES JULY 1, 2012, THROUGH JUNE 30, 2015 CURRENT PROGRAM BUDGET ACTIVITY ACTIVITY ACTIVITY ACTIVITY TO DATE BALANCE REVENUES Sales Tax Receipts $ 708,237,958 $ - $ 126,092,487 $ 135,296,515 $ 141,871,184 $ 403,260,186 $ 304,977,772 Interest Income 2,000, , , ,391 31,353 1,055, ,577 Other Local Revenues ,358 (29,358) Sate Capital Revenue 19,691,244-3,034, ,857 5,510,756 9,339,784 10,351,460 Bond Proceeds 276,496, ,496, ,496,560 - Total Revenues 1,006,425, ,693, ,762, ,283, ,413, ,151, ,273,809 EXPENDITURES Capital Improvements New Schools 154,665,332 1,313,363 14,974,486 73,552,526 60,700, ,540,839 4,124,493 Additions and Renovations 70,251,076 1,261,376 21,601,634 19,042,039 14,630,890 56,535,939 13,715,137 Athletic Facility Upgrades 7,788, ,274,291 3,468,463 7,742,754 45,689 System wide Capital Improvements 37,147,352 5,500,425 15,684,850 10,449,712 2,170,882 33,805,869 3,341,483 Facility Infrastructure Improvements 2,431,958-60,451 1,887, ,939 2,415,282 16,676 Total Capital Improvements 272,284,161 8,075,164 52,321, ,206,460 81,437, ,040,683 21,243,478 Non-Facilities Expenditures Instructional Materials 62,500, ,174 11,394,413 18,724,936 6,272,080 37,334,603 25,165,397 Media - Library Books 3,654, , , ,055 1,698,403 1,956,229 Bus Replacement 5,581,098 94,122 2,106,788 35, ,661 3,139,771 2,441,327 Spt. Vehicles/Bus Refurbishment 10,343,507 2,345,943 2,626,410 2,229,524 7,201,877 3,141,630 Equipment - Facilities 15,488, ,467 1,412,098 4,574,744 5,316,225 11,983,534 3,504,690 Project Management 1,407, ,340 10, , ,591 1,125, ,958 Technology - Central 151,609,310 17,679,264 71,221,487 30,811,250 19,572, ,284,425 12,324,885 Technology - Schools 20,484,412 65,137 1,862,316 2,535,824 9,677,156 14,140,433 6,343,979 EClass System Development 30,182,363-6,949,348 14,851,951 8,381,063 30,182,362 1 Total Non-Facilities Expenditures 301,250,615 19,876,504 98,299,201 74,794,035 53,120, ,090,519 55,160,096 Transfers to Other Funds Fund 204 (Admin Overhead 13,500,000-2,564,561 2,727,436 2,752,663 8,044,660 5,455,340 Fund 310 -Debt Service (COPs) 122,568,984-24,573,782 24,562,045 24,507,322 73,643,149 48,925,835 Fund Debt Service Fund (Bonds 265,991,128-16,018,678 63,941,858 39,237, ,197, ,793,430 Total Transfers to Other Funds 402,060,112-43,157,021 91,231,339 66,497, ,885, ,174,605 Other Expenditures Debt Service (Fees w/bond Issue) 1,489,305 1,489, ,489,305 - Total Other Expenditures 1,489,305 1,489, ,489,305 - TOTAL EXPENDITURES 977,084,193 29,440, ,777, ,231, ,055, ,506, ,578,179 Project Reserve 29,341, ,341,569 - TOTAL EXPENDITURES/RESERVES $ 1,006,425,762 $ 29,440,973 $ 193,777,643 $ 275,231,834 $ 201,055,564 $ 728,847,583 $ 277,578,179 Source: Capital Projects Multi-Year Expenditures, SPLOST IV programs at June 30, GCPS has developed a capital program, The Plan, to address new classroom needs and ongoing facility modifications, upgrades, and renovations for the period of This plan includes the SPLOST projects included in the performance review as well as projects funded by general obligation bonds authorized in Exhibit 2 lists the SPLOST IV projects currently included in The Plan and can be revised if funding is insufficient. December 15, 2015 Page 2

5 EXHIBIT 2 SPLOST IV PROJECTS THE PLAN YEAR OPENING PROJECT NUMBER PROJECT NEW/ADDITION/ RENOVATION NUMBER OF CLASSROOMS Alcova ES Addition 20 2 Peachtree Ridge Cluster MS New 40 3 North Gwinnett HS Addition 10 4 Berkmar/Central Gwinnett Relief Cluster ES (Baggett) New 53 5 Meadowcreek Cluster ES (Graves) New 53 6 Berkmar/Central Gwinnett Relief Cluster HS (Discovery) New 80 7 Rockbridge ES Addition 15 8 Central Gwinnett Cluster MS (Jordan MS) New 45 9 Summerour MS Replacement (move to Buchanan HS of Technology site) Renovation Duluth Cluster MS (currently Monarch school Facility) Renovation Twin Rivers MS Addition North Gwinnett MS Addition Camp Creek ES Addition Peachtree Ridge HS Addition Meadowcreek HS - 3rd Floor Addition Norcross Cluster ES (house at renovated Summerour MS facility) New/Renovation GIVE Center West (replacement facility) New GIVE Center South New 30 Technology improvements system wide to support teaching and learning System-wide facility modification, renovation, and infrastructure improvements: airconditioning of all HS and MS gyms, ES activity buildings, and Kitchens; buses (new/refurbished); ADA improvements; new Fleet Maintenance facility; athletic facility upgrades to standards; furniture/fixtures/equipment growth and replacement; fine arts growth and replacement; basic equipment list upgrades Source:, Division of Facilities and Operations, As per the requirements of this Audit and Review, MGT has reviewed and analyzed the school district spending of SPLOST IV funds and found the to be in compliance with the following three related sections of Georgia s Constitution and Official Code of Georgia (O.C.G.A.): O.C.G.A Authorizes sales taxes for educational purposes in the same manner as county sales and use taxes. December 15, 2015 Page 3

6 O.C.G.A Authorizes the use of tax proceeds and requires that a record be maintained of each project for which the proceeds of the tax are used. O.C.G.A Specifically provides that such tax proceeds shall be subject to a performance audit or performance review through a public request for proposals process with respect to any sales tax for educational purposes, which is in effect in July 1, INTRODUCTION As mentioned in the Executive Summary, in May 2013, the Gwinnett County Board of Education contracted with MGT of America, Inc., to conduct an Annual Special Purpose Local Option Sales Tax (SPLOST) Audit and Review for the school year and subsequent years of the SPLOST IV program. This report represents the third year of the SPLOST IV review and includes the school year, and examines the use of SPLOST IV funds during this period. The purpose of this annual audit and review is to analyze how the school system is spending funds provided by SPLOST IV and to verify compliance with the approved referendum and Georgia s Constitution and Code. SPLOST IV funds were authorized through a referendum approved by the voters of Gwinnett County. The referendum included the following projects to be funded through SPLOST IV: Developing sites for, constructing, and equipping new schools, support facilities, and athletic facilities. Making additions to, and/or renovating, equipping, and modernizing existing schools, support facilities, and athletic facilities. Purchasing and refurbishing school buses and other support vehicles. Making existing lease/purchase payments with respect to the acquisition of new and existing schools and support facilities. Modernizing technology and making system-wide technology improvements. Acquiring digital instructional materials, software, textbooks, and library materials. As also previously stated, the voters also authorized the Board of Education to sell short-term general obligation bonds in the amount of $275 million to be repaid with SPLOST IV sales tax revenue. SPLOST IV funds became available to (GCPS) beginning in February 2012 with the sale of $242,840,000 in short-term general obligation bonds with principal and interest to be paid by the SPLOST IV program. To fulfill the requirements of the current contract with the Gwinnett County Board of Education, MGT developed an Annual SPLOST Audit and Review designed to: Develop a summary set of information about the status of funds collected. Prepare any findings with recommended strategies for improvements in the use of the funds in GCPS, if needed. Develop specific strategies and timelines for implementing any recommendation. December 15, 2015 Page 4

7 METHODOLOGY This section describes the methodology MGT used to prepare for and conduct the annual SPLOST IV Audit and Review of. MGT s audit and performance methodology: Identifies compliance or noncompliance with Georgia Statutes regulating SPLOST funds. Takes into account the unique environment within which the school district operates and the specific student body involved. Obtains input from school district administrators and staff. Follows a common set of guidelines tailored specifically to GCPS. Identifies the level and effectiveness of externally imposed work tasks and procedures. Provides recommendation for practices needing Improvement. Documents all exhibits and findings. Presents straightforward and practical recommendations for improvement. Each of the strategies MGT used is described below, and is presented with a timeline (Exhibit 1). To provide a foundation for data analyses and recommendations, MGT simultaneously conducted many activities. Among these were the identification and collection of existing reports and data sources that provided recent information on the various administrative functions and financial operations associated with the SPLOST IV funds MGT reviewed in GCPS. Documents MGT requested included, but are not limited to, the following: Independent financial audits Annual budget and expenditure reports Budget guidelines and procedures Organizational charts School board policies and administrative procedures Program and compliance reports Technology plan Annual performance reports MGT analyzed the retainage payment schedules for SPLOST IV funds during the school year for contractors associated with the following projects: Central Gwinnett Cluster Middle School (Jordan Middle School) Graves Elementary School The district continues to track retainage with the following information: Project name Contractor name and contract amount Architect name and contract amount Amounts paid to date for both the contractor and the architect Total retainage to date Previous retainage Current retainage December 15, 2015 Page 5

8 Documentation reviewed for the aforementioned projects included copies of the application and certificate for payment, detailed deliverables provided, summary of deliverables provided, and the approval from the internal construction manager. All of the payment schedules included appropriates of retainage. MGT reviewed the SPLOST IV accounts payable listing for the school year. This included a general review to determine if the various vendors appeared to be appropriate for the SPLOST IV programs as well as a detailed review of a sample of paid invoices that were deemed to be unusual due to the amounts. All of these assets that required asset identification tags were located and properly identified with asset identification bar code tags, while other items such as bus acquisitions and capital improvement items were also verified. The audit team visited the following schools and departments to review furniture and equipment assets purchased with SPLOST IV resources to ensure that asset identification tags were affixed and items were in use: Northbrook Middle School Fleet Maintenance Department Peachtree Ridge High School The following exhibit, Exhibit 3, identifies the equipment verified at each of the sites above. EXHIBIT 3 VERIFIED EQUIPMENT ASSETS FACILITY ITEM ASSET ID LOCATION Northbrook Middle Workstation Video School Production Northbrook Middle Language Learning Lab School Fleet Maintenance 2015 Ford F-150 GV3138F 075 Department Vin: 1FTMF1E84FFB41910 Fleet Maintenance School Bus Department Peachtree High School Tomcat RS 28 Floor Scrubber Peachtree High School Sweeper / Rider Automatic Peachtree High School Sousaphone Sliver w/ Case Short Peachtree High School Marimba Concert 5.5 Octave Source: Equipment verified by MGT, Technology MGT conducted a review of the GCPS technology plan including the SPLOST IV technology expenditures as established by district and state protocols. Each of these expenditures fell into one of the following three categories; C-Projects this category of expenditure refers to projects related to new and retro-fitting of schools. This includes all information technology components related to wireless points of presence, technology devices, and supporting infrastructure to either bring a new school on line or to retro-fit an existing school, December 15, 2015 Page 6

9 as well as the necessary infrastructure purchases, implementation, installation, upgrades or vendor fees for providing infrastructure related services throughout the district s school buildings. S-Projects this category of expenditure refers to all application development costs associated with the development, maintenance licensing, or upgrades associated with district level information technology and is either vendor provided or a district developed application. T-Projects this category of expenditure refers to all costs associated with instructional technology or education program projects. This includes, infrastructure purchases, implementation, installation, upgrades or vendor fees for providing infrastructure related services. Exhibit 4 details the expenditures by year by category for technology in the SPLOST IV budget. The period FY15, July 1, 2014, through June 30, 2015, are the expenditures reviewed by MGT for the purposes of this year s audit. EXHIBIT 4 SPLOST IV BUDGET REPORT TECHNOLOGY EXPENDITURES BY YEAR FY12 FY13 FY14 FY15 EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES PROJECT-TO-DATE TECHNOLOGY BUDGET 7/1/11-06/30/12 7/1/12-06/30/13 7/1/13-06/30/14 7/1/14-06/30/15 THROUGH 6/30/15 BALANCE Northbrook Center C-03D-001 $ 70, $ - $ - $ - $ 13, $ 13, $ 56, Berk,ar HS Int Modifications C $ 180, $ - $ - $ - $ - $ - $ 180, North Gwinnett MS Addition C $ 996, $ - $ - $ - $ - $ - $ 996, Berkmar/Central Cluster HS C $ 5,048, $ - $ 60, $ 351, $ 2,940, $ 3,351, $ 1,696, Twin Rivers MS Addition C $ 996, $ - $ - $ - $ 11, $ 11, $ 985, Northbrook MS C $ 2,005, $ - $ 89, $ 1,169, $ 746, $ 2,005, $ (0.50) Jordan MS C $ 2,620, $ - $ - $ 41, $ 1,739, $ 1,780, $ 839, Baggett ES C $ 1,992, $ - $ - $ 40, $ 1,528, $ 1,569, $ 423, Graves ES C $ 1,992, $ - $ - $ - $ 1,507, $ 1,507, $ 484, Lawrenceville ES C $ 109, $ - $ - $ $ 108, $ 109, $ - Meadowcreek HS 3rd Floor Buildout C $ 20, $ - $ 20, $ - $ - $ 20, $ - North Gwinnett Addition C $ 1,316, $ 33, $ 316, $ 424, $ 489, $ 1,264, $ 52, Rockbridge ES Addition C $ 765, $ 24, $ 108, $ 280, $ 352, $ 765, $ 0.18 Alcova ES Addition C $ 476, $ - $ 10, $ 227, $ 238, $ 476, $ 0.35 BEL Retrofit/Upgrades C $ 496, $ - $ 226, $ 269, $ - $ 496, $ 0.20 PeopleSoft Implementation S-100 $ 20,588, $ - $ 7,427, $ 9,053, $ 2,870, $ 19,351, $ 1,237, Remote Access S-200 $ 15,108, $ - $ 5,325, $ 3,110, $ 4,804, $ 13,240, $ 1,867, Student Information System S-300 $ 8,183, $ - $ - $ - $ 2,597, $ 2,597, $ 5,585, EClass System Development S-500 $ 21,630, $ 7,619, $ 14,010, $ - $ - $ 21,630, $ 0.24 Analytics S-600 $ 397, $ - $ - $ 149, $ 248, $ 397, $ - Growth Computers T-100 $ 6,842, $ 1, $ 1,601, $ 2,983, $ 1,963, $ 6,550, $ 292, Collaborative Systems T-110 $ 5,668, $ 1,070, $ 1,585, $ 608, $ 1,790, $ 5,054, $ 614, Video Broadcast Technology T-120 $ 2,171, $ - $ - $ 800, $ 1,242, $ 2,043, $ 127, Technology Refresh T-200 $ 5,999, $ - $ 2,903, $ 3,095, $ $ 5,999, $ (0.57) MS Technology Refresh T-300 $ 38,189, $ 8,211, $ 28,518, $ 1,457, $ 2, $ 38,189, $ 0.58 High School Technology Refresh T-400 $ 9,387, $ 775, $ 4,389, $ 3,780, $ 421, $ 9,367, $ 20, Network Mngt/Intrusion Detection T-600 $ 5,277, $ - $ 719, $ 1,995, $ 1,375, $ 4,089, $ 1,188, Infrastructure Testing T-700 $ 9,481, $ - $ 2,695, $ 3,268, $ 2,200, $ 8,164, $ 1,317, Central Office Refresh T-800 $ 2,115, $ - $ 1,817, $ 238, $ 54, $ 2,109, $ 5, Charter School Infracture T-900 $ 1,963, $ 6, $ 1,256, $ - $ - $ 1,263, $ 700, $ 172,093, $ 17,744, $ 73,083, $ 33,347, $ 29,249, $ 153,424, $ 18,668, Source:, Budget, Finance, and Accounting Department, Transportation During the MGT onsite visit a review of the district transportation facilities, transportation plan as well as the SPLOST IV expenditures was conducted. The district owns and operates approximately 2,000 buses across five regional transportation centers. A combination of new and refurbished equipment is used to December 15, 2015 Page 7

10 transport students on a daily basis. School buses typically have a 15 year useful life cycle before they are refurbished or surplused. In FY15 the district purchased or refurbished 35 buses with SPLOST IV funds. Exhibit 5 details the transportation expenditures with SPLOST IV funds for the period FY15, July 1, 2014, through June 30, EXHIBIT 5 SPLOST IV BUDGET REPORT TRANSPORTATION EXPENDITURES BY YEAR FY12 FY13 FY14 FY15 EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES PROJECT-TO-DATE BUDGET 7/1/11-06/30/12 7/1/12-06/30/13 7/1/13-06/30/14 7/1/14-06/30/15 THROUGH 6/30/15 BALANCE Fleet Maintenance C Bus Refurbishment $ 7,157, $ - $ 2,081, $ 1,791, $ 918, $ 4,791, $ 2,366, C Purchase support Vehicles $ 3,185, $ - $ 264, $ 835, $ 1,311, $ 2,410, $ 775, Represents department $ 10,343, $ - $ 2,345, $ 2,626, $ 2,229, $ 7,201, $ 3,141, Bus Replacement Buses C $ 5,581, $ 94, $ 2,106, $ 35, $ 903, $ 3,139, $ 2,441, Represents department $ 5,581, $ 94, $ 2,106, $ 35, $ 903, $ 3,139, $ 2,441, Source:, Budget, Finance, and Accounting Department, The audit team also visited the following facilities to review capital Improvements projects: Brookwood Elementary School Pinckneyville Middle School Creekland Middle School Kanoheda Elementary School Berkmar/Central Gwinnett Relief Cluster Elementary School (Baggett Elementary School) Meadow Creek Cluster Elementary School (Graves Elementary School) Rockbridge Elementary School Lawrenceville Elementary School Dacula Elementary School Peachtree Ridge Cluster Middle School (Northbrook Middle School) Central Gwinnett Cluster Middle School (Jordan Middle School) Dacula Middle School Dacula High School Berkmar/Central Gwinnett Relief Cluster High School (Discovery High School) December 15, 2015 Page 8

11 The timeline used in the project is shown in Exhibit 6. EXHIBIT 6 TIMELINE FOR THE ANNUAL SPLOST IV AUDIT AND REVIEW OF GWINNETT COUNTY PUBLIC SCHOOLS July 2015 TIMEFRAME September 2015 Week of October 5, 2015 October December November December December Source: MGT of America, Inc., Finalized contract. ACTIVITY Contract extended with Project Manager and confirmed October onsite review dates. Conducted onsite audit and review; collected additional data, interviewed staff, visited school and administrative sites; exit conference. Analyzed data collected; requested clarification of document as needed. Submitted working documents as no findings were needed during this particular audit and review of SPLOST IV funds. Submitted draft and final executive summary and report. December 15, 2015 Page 9

12 OVERVIEW OF SPLOST IV As previously shown, Exhibit 7 provides a summary of the program to date revenues and expenditures for the SPLOST IV program. EXHIBIT 7 SUMMARY OF REVENUES AND EXPENDITURES JULY 1, 2013, THROUGH JUNE 30, 2015 CURRENT PROGRAM BUDGET ACTIVITY ACTIVITY ACTIVITY ACTIVITY TO DATE BALANCE REVENUES Sales Tax Receipts $ 708,237,958 $ - $ 126,092,487 $ 135,296,515 $ 141,871,184 $ 403,260,186 $ 304,977,772 Interest Income 2,000, , , ,391 31,353 1,055, ,577 Other Local Revenues ,358 (29,358) Sate Capital Revenue 19,691,244-3,034, ,857 5,510,756 9,339,784 10,351,460 Bond Proceeds 276,496, ,496, ,496,560 - Total Revenues 1,006,425, ,693, ,762, ,283, ,413, ,151, ,273,809 EXPENDITURES Capital Improvements New Schools 154,665,332 1,313,363 14,974,486 73,552,526 60,700, ,540,839 4,124,493 Additions and Renovations 70,251,076 1,261,376 21,601,634 19,042,039 14,630,890 56,535,939 13,715,137 Athletic Facility Upgrades 7,788, ,274,291 3,468,463 7,742,754 45,689 System wide Capital Improvements 37,147,352 5,500,425 15,684,850 10,449,712 2,170,882 33,805,869 3,341,483 Facility Infrastructure Improvements 2,431,958-60,451 1,887, ,939 2,415,282 16,676 Total Capital Improvements 272,284,161 8,075,164 52,321, ,206,460 81,437, ,040,683 21,243,478 Non-Facilities Expenditures Instructional Materials 62,500, ,174 11,394,413 18,724,936 6,272,080 37,334,603 25,165,397 Media - Library Books 3,654, , , ,055 1,698,403 1,956,229 Bus Replacement 5,581,098 94,122 2,106,788 35, ,661 3,139,771 2,441,327 Spt. Vehicles/Bus Refurbishment 10,343,507 2,345,943 2,626,410 2,229,524 7,201,877 3,141,630 Equipment - Facilities 15,488, ,467 1,412,098 4,574,744 5,316,225 11,983,534 3,504,690 Project Management 1,407, ,340 10, , ,591 1,125, ,958 Technology - Central 151,609,310 17,679,264 71,221,487 30,811,250 19,572, ,284,425 12,324,885 Technology - Schools 20,484,412 65,137 1,862,316 2,535,824 9,677,156 14,140,433 6,343,979 EClass System Development 30,182,363-6,949,348 14,851,951 8,381,063 30,182,362 1 Total Non-Facilities Expenditures 301,250,615 19,876,504 98,299,201 74,794,035 53,120, ,090,519 55,160,096 Transfers to Other Funds Fund 204 (Admin Overhead 13,500,000-2,564,561 2,727,436 2,752,663 8,044,660 5,455,340 Fund 310 -Debt Service (COPs) 122,568,984-24,573,782 24,562,045 24,507,322 73,643,149 48,925,835 Fund Debt Service Fund (Bonds 265,991,128-16,018,678 63,941,858 39,237, ,197, ,793,430 Total Transfers to Other Funds 402,060,112-43,157,021 91,231,339 66,497, ,885, ,174,605 Other Expenditures Debt Service (Fees w/bond Issue) 1,489,305 1,489, ,489,305 - Total Other Expenditures 1,489,305 1,489, ,489,305 - TOTAL EXPENDITURES 977,084,193 29,440, ,777, ,231, ,055, ,506, ,578,179 Project Reserve 29,341, ,341,569 - TOTAL EXPENDITURES/RESERVES $ 1,006,425,762 $ 29,440,973 $ 193,777,643 $ 275,231,834 $ 201,055,564 $ 728,847,583 $ 277,578,179 Source: Capital Projects Multi-Year Expenditures, SPLOST VI programs at June 30, December 15, 2015 Page 10

13 Exhibit 8 provides more detailed information regarding the construction program activities during the first 52 months of the SPLOST IV program. EXHIBIT 8 SPLOST IV BUDGET TO ACTUAL EXPENDITURES FOR PERIOD ENDED JUNE 30, 2015 ORIGINAL CURRENT TOTAL PROJECTS BUDGET BUDGET EXPENDITURES EXPENDITURES EXPENDITURES EXPENDITURES PROGRAM NEW SCHOOLS Discovery High School $ 68,000,000 $ 76,881,831 $ 893,714 $ 6,149,538 $ 44,245,686 $ 23,954,975 $ 75,243,913 Discovery High School Modification - 50, Northbrook MS 17,801,500 18,939, ,649 7,371,235 11,023, ,362 18,939,169 Jordon Middle School 25,740,000 17,500, ,513 6,702,620 9,925,419 17,068,552 Bagget Elementary School 21,942,500 17,320, ,278 6,785,277 9,851,237 17,027,792 Graves Elementary School - 20,370, ,672,912 16,031,079 19,703,991 Discovery HS Site Stabilization - 590, , , ,854 Northbrook MS Site Stabilization - 550,000-1, ,723 36, ,633 Jordon MS Site Stabilizatikon - 500, , ,561 Bagget ES Site Stablization - 500, , ,899 Graves ES Site Stabiliation - 500, , ,124 Summerour MS Replacement 964, , , ,351 Total New Schools 133,484, ,665,332 1,313,363 14,974,486 73,552,526 $ 60,700, ,540,839 ADDITIONS/RENOVATIONS Monarch Renovtion 8,190, Camp Creek ES Renovation 10,910,000 2,073,329 2,073,329 2,073,329 N. Gwinnett MS Addition 9,490,000 7,290, ,008 1,508,062 1,541,631 Twin Rivers MS Addition 8,490,000 7,735, ,261,986 1,261,986 Meadowcreek HS Buildout 2,172,500 18,160-15,022 (15,022) 18,160 18,160 North Gwinnett HS Add/Renovation 30,180,000 12,545, ,842 9,194,517 2,879, ,734 12,545,933 North Gwinnett HS Gym AC/Roof - - 1,073, ,654-1,979,121 North Gwinnet HS Add-Phase II - 4,449, ,260,076 2,163,121 4,423,292 North Gwinnett Field house - 1,985, ,754,339 1,754,339 Rockbridge ES Addition 17,000,000 19,564, ,959 10,616,948 7,510, ,621 19,564,298 Peachtree Ridge HS Addition 7,500,000 1,296, ,296,400 1,296,400 Alcova ES Addition 10,630,000 5,420,198 7, ,270 5,025,020 81,769 5,420,198 ADA Complince 400, ,853-51, ,240 91, ,240 Ptree Ridge HS Stadium Rest Room - 280, Alcova ES Activity Bldg - 203, ,528 98, ,816 N. Gwinnett MS Site Stabilization - 10, ,712 6,712 Twin Rivers MS Site Stabilzation - 100, N.Gwinnett HS Site Sabilization - 350, ,983 86,273 34, ,887 Rockbridge ES Site Stabilization - 225,000-35, ,530 65, ,934 Alcova ES Site Stabilization - 115, ,650 31, ,615 Berkmar Interior Remodel/HVAC/Roof - 4,515, ,928 3,303,777 3,430,705 Berkmar Interior HSl Academy Remodel 100, Five Forks HVAC/Renovation 1,101,118 79,135 52, ,966 Meadowcreek Academy Modification 200,000 15,888 15,888 Monarch Renovation 110, , ,552 Total Additions/Renovations 104,962,500 70,251,076 1,261,376 21,601,634 19,248,102 14,630,890 56,742,002 OTHER CAPITAL IMPROVEMENTS Athletic Facilities 2,360,000 7,788,443-3,468,463 4,274,291 3,468,463 11,211,217 System-Wide Capital Improvements 27,500,000 37,147,352 5,500,425 12,216,386 10,243,649 2,170,882 30,131,342 Other Improvements 2,570,000 2,431,958-60,451 1,887, ,939 2,415,282 Total Other Capital Improvements 32,430,000 47,367,753 5,500,425 15,745,300 16,405,832 6,106,284 43,757,841 Total Construction $ 270,876,500 $ 272,284,161 $ 8,075,164 $ 52,321,420 $ 109,206,460 $ 81,437,638 $ 251,040,682 Source: Multi-Year Project Details for the through December 15, 2015 Page 11

14 Exhibit 9 identifies the balances in the various SPLOST IV-related bank accounts at June 30, EXHIBIT 9 SPLOST IV CASH BALANCES AS OF JUNE 30, 2015 ACCOUNTS BALANCE Morgan Stanley Investment of 2012 General Obligation Bond Issue Proceeds $ - Wells Fargo Bank NA - Depository for Sales Tax Disburses to Investments or to General Fund to Reimburse for SPLOST Expenditures 457,235 Georgia Fund 1 Amount for 10/1/2015 Debt Service Payment for 2012 General Obligation Bonds 39,689,825 Georgia Fund 1 Investment of Sales Tax Proceeds for SPLOST IV 4,841,581 Georgia Fund 1 Account Being Held for Future Transactions - TOTAL SPLOST II CASH JUNE 30, 2015 $ 44,988,641 Source:, Budget, Finance, and Accounting Department and quarterly bank statements from July 2014 through June GCPS has developed a capital program, The Plan, to address new classroom needs and ongoing facility modifications, upgrades, and renovations for the period of The funding for The Plan will come from several sources including SPLOST revenue, state capital outlay dollars, and remaining 2008 general obligation bonds. Exhibit 10 lists the projects currently included in The Plan and can be revised if funding is insufficient. December 15, 2015 Page 12

15 EXHIBIT 10 PROJECTS IN THE PLAN: SCHOOL TYPE OF PROJECT SPLOST BUDGET A/E FIRM PRIME CONTRACTOR New School/Addition Projects Baggett ES New $17,000,000 Lindsey, Pope, Brayfield, and Clifton Bowen & Watson, Inc. Graves ES New $19,500,000 Cunningham, Forehand, Matthews & Moore Carroll Daniel Construction Co. Discovery HS New $64,000,000 Smallwood, Reynolds, Stewart & Stewart Carroll Daniel Construction Co. Jordan MS New $18,000,000 Chapman, Griffin, Lanier & Sussenback Barton-Mallow Construction Co. Summerour MS Relocation $26,000,000 Lindsey, Pope, Brayfield, and Clifton Carroll Daniel Construction Co. Peachtree Ridge HS Addition $6,500,000 Cunningham, Forehand, Matthews & Moore A.M. Adams Building Corp. Twin Rivers MS Addition $6,500,000 Cunningham, Forehand, Matthews & Moore Bowen & Watson, Inc. North Gwinnett MS Addition $6,500,000 Clark, Patterson, Lee Bowen & Watson, Inc. North Gwinnett HS Phase II Addition $4,250,000 Cunningham, Forehand, Matthews & Moore Swofford Construction North Gwinnett HS - Field House New $1,800,000 Cunningham, Forehand, Matthews & Moore Amacher Bros. Construction Co. Parkview HS - Field House New $2,000,000 Smallwood, Reynolds, Stewart & Stewart Amacher Bros. Construction Co. HVAC/Renovation Projects Berkmar HS HVAC/Renovation $4,000,000 Clark, Patterson, Lee Amacher Bros. Construction Co. Summer 2014 Kitchen HVAC Projects McKendree ES Kitchen HVAC $95,000 Chapman, Griffin, Lanier & Sussenback Pressley, Inc. Annistown ES Kitchen HVAC $95,000 Chapman, Griffin, Lanier & Sussenback Pressley, Inc. Pharr ES Kitchen HVAC $95,000 Lindsey, Pope, Brayfield, and Clifton Diversified Construction of Georgia, Inc. Ft. Daniel ES Kitchen HVAC $95,000 Hussey, Gay, Bell & DeYoung Conditioned Air Systems, Inc. Peachtree ES Kitchen HVAC $130,000 Precision Planning John F. Pennebaker Co. Inc. Summer 2014 Gym HVAC Projects Collins Hill HS Gym HVAC $760,000 Clark, Patterson, Lee Waters Mechanical, Inc. Jackson ES Gym HVAC $210,000 Clark, Patterson, Lee Waters Mechanical, Inc. Riverside ES Gym HVAC $720,000 Clark, Patterson, Lee John F. Pennebaker Co. Inc. Dacula ES Gym HVAC $275,000 Lindsey, Pope, Brayfield, and Clifton John F. Pennebaker Co. Inc. Dacula MS Gym HVAC $250,000 Lindsey, Pope, Brayfield, and Clifton John F. Pennebaker Co. Inc. Dacula HS Gym HVAC $910,000 Lindsey, Pope, Brayfield, and Clifton John F. Pennebaker Co. Inc. Peachtree ES Gym HVAC $160,000 Precision Planning John F. Pennebaker Co. Inc. Pharr ES Gym HVAC $135,000 Lindsey, Pope, Brayfield, and Clifton Diversified Construction of Georgia, Inc. Source: MGT of America, Inc., summary, prepared from data furnished by, Division of Facilities and Operations, December 15, 2015 Page 13

16 GCPS has continued to improve the quality of materials used in the construction of schools and to explore new methodologies which can save resources and maintain quality. Exhibit 11 updates the initiatives the district has undertaken to become more energy efficient. EXHIBIT 11 ENERGY/RESOURCE CONSERVATION INITIATIVES INITIATIVE PROGRESS Energy Management The district incorporated new EMS technology in one new school that Systems (EMS) opened in 2014 and six new schools that opened in August of In addition, EMS systems were upgraded in numerous HVAC renovations, and in numerous Gym, Activity Building, and Kitchen renovations. Energy Efficient Eighteen gyms with exposed roof structure (no ceiling) were upgraded with Lighting new LED light fixtures. Twenty-three gyms with acoustical ceilings were upgraded with T-5 high efficiency fluorescent lighting. Nineteen kitchens were upgraded with T-8 high efficiency fluorescent lighting. Rebates Requests for rebates totaling $35, were submitted to Georgia Power for lighting, HVAC, and occupancy sensor improvements. Audits GCPS has worked with the public utility to conduct energy audits at six schools in FY 15; Archer HS, Mountain View HS, S. Gwinnett HS, Maxwell HS, Burnett ES, and GSMST. These audits are free of charge and can identify no/low cost opportunities for energy savings. GCPS conducted two annual rate reviews with their electrical providers, Jackson EMC and Georgia Power, to ensure that rates were applied properly and to take advantage of the most beneficial rate given their usage patterns. Source:, Division of Facilities and Operations, CONCLUSION The Executive Summary along with the Introduction, Methodology, and Overview sections of this report provided MGT s audit and performance team the information necessary to reach the following conclusion associated with the Gwinnett County Schools SPLOST IV Audit and Performance Review. MGT has reviewed and analyzed the school district spending of SPLOST IV funds and found GCPS to be in compliance with the following three related sections of Georgia s Constitution and Official Code of Georgia (O.C.G.A.): O.C.G.A Authorizes sales taxes for educational purposes in the same manner as county sales and use taxes. O.C.G.A Authorizes the use of tax proceeds and requires that a record be maintained of each project for which the proceeds of the tax are used. O.C.G.A Specifically provides that such tax proceeds shall be subject to a performance audit or performance review through a public request for proposals process with respect to any sales tax for educational purposes, which is in effect in July 1, December 15, 2015 Page 14