ABDO .Rl [1b Ct'7 1qV- 1?'f STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334 AUDIT REPORT CAMDEN COUNTY BOARD OF EDUCATION KINGSLAND, GEORGIA YEAR ENDED JUNE 30, 1994 CAMDEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION! FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS- OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET GOVERNMENTAL FUND TYPES 5 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 6 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 24 SCHEDULES 1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 26 2 ANALYSIS OF CASH AND CASH EQUIVALENTS 28 3 ACCOUNTS RECEIVABLE 29 4 DEBT SERVICE REQUIREMENTS TO MATURITY 30 SCHEDULE OF REVENUE 5 STATE FUNDS 31 6 LOCAL AND OTHER FUNDS 32 CAMDEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES SCHEDULE OF EXPENDITURES BY OBJECT 7 GOVERNMENTAL FUND TYPES 33 8 LOTTERY PROGRAMS 34 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 9 OVERALL 35 10 BY PROGRAM 36 11 SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS 38 SECTION II COMPLIANCE COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS SECTION III INTERNAL CONTROL REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS CAMDEN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SECTION! FINANCIAL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 18, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Camden County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Ladies and Gentlemen: We have audited the general purpose financial statements (Exhibits A through D) of the Camden County Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 94ARL-13 As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. The Board did not recognize as expenditures, in the year ended June 30, 1994, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1994. Also funds received, subsequent to June 30, 1994, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1993, were improperly recorded in the year ended June 30, 1994. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the Camden County Board of Education as of June 30, 1994, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ofthe Camden County Board of Education taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the Camden County Board of Education. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 94ARL-13 A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, L~ Claude L. Vickers State Auditor CLV:gp 94ARL-13 CAMDEN COUNTY BOARD OF EDUCATION - 1- CAMDEN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1994 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Total Assets GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND 909,356.58 $ 928,902.14 $ 1,702,563.65 121,991.72 177,004.18 2,997,046.96 36,643.35 20,336.89 $ 1,031,348.30 $ 1,162,886.56 $ 4,699,610.61 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Elcpired Grant Balances Payable Contracls Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Debt Service For Elcpired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Capital Outlay Projects Unreserved Deficit Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 630,181.65 $ 166,834.94 $ 27,764.33 166,702.63 5.64 19,918.34 1,836,504.67 959,673.11 146,989.11 $ 630187.29 $ 500,445.02 $ 2 823,942.11 $ 9,491.23 $ 36,643.35 20,336.89 $ 2,242,122.17 $ 9,491.23 $ 56,980.24 $ 2,242,122.17 391,669.78 605,461.30 -366,453.67 0.00 $ 401,161.01 $ 662,441.54 $ 1,875,668.50 $ 1,031,348.30 $ 1,162,886.56 $ 4,699,610.61 The notes to the general purpose financial statements are an integral part of this statement -2 - EXHIBIT"A" DEBT SERVICE FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS !Memorandum Onl)1 JUNE 30 1994 JUNE 30 1993 $ 64,425.89 $ 3,605,248.26 $ 1,957,835.35 1,179.70 3,297,=.56 1,708,821.31 36,643.35 20,336.89 43,341.15 16,393.34 $ 65,605.59 65,605.59 58,757.79 169,394.41 6,192 887.71 169,394.41 6,192,887.71 226,242.21 21,323.58 $ 65,605.59 $ 6,427,887.71 $ 13.387,338.n $ 4,032,714.73 $ 824,780.92 $ 681,504.65 166,702.63 174,610.31 19,923.98 404.74 1,836,504.67 612,696.54 959,673.11 209,202.98 146,989.11 $ 6,192,887.71 6,192,887.71 21,323.58 235,000.00 235,000.00 285 000.00 $ 6,427,887.71 $ 10,382,462.13 $ 1,984,742.80 $ 65,605.59 $ 65,605.59 0.00 $ 65 605.59 $ 65,605.59 $ $ 112,374.32 $ 65,605.59 58,757.79 9,491.23 36,643.35 20,336.89 2,242,122.17 43,341.15 16,393.34 308,264.00 $ 2,374,199.23 $ 539,130.60 -366,453.67 997,131.08 1,508,841.33 $ 3,004,876.64 $ 2,047,971.93 6,427,887.71 $ 13,387,338.n $ 4,032,714.73 3. CAMDFN CQ!,JNTY BOARD Qf l;QUCATION ~~~l~tQ SIATEM&NT QF Rl;~NUi$ EXPl;~OITUBI; AND !;;~Q,~ IN F!.!NQ ~ g e Si?Q~RNM!;NT81. FUflQ D'.PI;~ YEAR ENPEP IUNE 30 1994 EXHIBIT"B GENERAL FUND SPECIAL REVENUE FUND CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS ~morandum OnM YEAR ENDED JUNE30 1994 JUNE30 1993 ~ State Funds Federal Funds Local and Other Funds Total Revenues 18,891,>9.04 S 1,933,288.35 6 789 905.62 539,617.61 $ 2,046,001.11 843 444.97 2,517,480.00 8,684,768.77 7926.48 $ 27 614 603.01 $ 3 429 063.69 $ 11 210175.23 $ 73612.30 21,948,506.65 S 17,528,945.26 12,664,058.23 &,361,11&.n 7714~9.35 7 4401!.53 73612.30 S 42~27 454.23 S 31 331 087.56 E)CPENPITLJRES Current Instruction Support Services PupilSenrices lmpnwement of Instructional Services Educational Media Semce& General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Service& -Other Support Services Community Service Operations Food Semc8S Operation Other Operations of Non-Instructional Capital Outlay DeblSe!:.t:tED!,!Lla QF FEQl;ReL FINANQleL esslSTANQE YEeR ENDER JUNE 30 1994 SCHEDULE "1" FUNDING AGENCY PRQGMM!GMNI CFDA NUMBER AWARDS IN PERIOD FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS) FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, u. s. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1993Grant 1994Grant National School Lunch Program 1993 Grant 1994 Grant Food Distribution Program (1) 10.553 10.553 $ 10.555 10.555 10.550 $ 166,509.98 739,075.50 140586.90 4,366.52 160,021.57 $ 5,829.55 731,559.09 NIA 166,509.98 (2) 739,075.50 $ 140,586.90 1,734,042.37 (3) 140586.90 Total U. s. Deparbnent of Agricutture $ 1 046172.38 901 776.73 $ 1 046 172.38 $ 1874629.27 Defense, u. s. Department of Through Kings Bay Impact COO!iillFt.NQE Defense, U. S. Department of Direct Public Law 102-368 as Amended and Section 386 of Public Law 102""84 1994Grant Small Business Administration Through Georgia Forestry Commission Trae Planting Program SBA 93-16 $ 1 149,974.00 $ 1149 974.00 $ 1149974.00 (4) 59.045 $ 8,000.00 8,000.00 $ 8,000.00 Total Federal Financial Assistance $ 4105 243.95 $ 13 069,065.64 $ 12 664 058.23 $ 14 699 945.42 Major Programs are identified by an astertsk (") in front of the CFDA number. (1) The amounts shown for the Food Distrtbution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1994 National School Lunch Program. (3) Expenditures for this program include State, and/or Local and Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures See notes to the general purpose financial statements. 27 CAMDEN COUNTY BOARD OF EDUCATION ANALYSIS OF CASH AND CASH EQUIVALENTS JUNE 30 1994 SCHEDULE "2" INTEREST BEARING ACCOUNTS Barnett Bank, Kingsland, Georgia Checking Accounts (2.590%) Coastal Bank, Kingsland, Georgia Checking Account (3.705%) OTHER Petty Cash $ 750,791.40 2,854,406.86 $ 3,605,19826 50.00 $ 3,605,248.26 See notes to the general purpose financial statements. - 28 - CAMQl;N COUNTY BOARD Qf l;QlJCATIQN ACCOUNTS Bl=C'=I\/ABI E JUNf 30 1994 SCHEOULET Brunowiclc College Reimbursement for Custodial Supplies Camden County Tax Commissioner County Wide Bond Tax County Wide School Tax Cooslal Private Industry Council Job Training Partnership Act Defense, U.S. Department of Through l(jngs Bay Impact Coordinating Committee Impact Assistance lo, Arees Affected by the East Coast Trident Program Education, Georgia Department of Foods.r.... School Breakfast Program National School Lunch Program Federal Programs Drug--Free Schoots and Communities Ad. Eisenhower Mathematics and Science Education Tdlell ESEA Chapter 1 Education of Deprived Children Individual& with Disabilities Education Act Tdle VI, B Flow Through Preschool Program Glynn County Board of EducatK>n Cooslal Academy Paychoeducational Program Gvgia fo,estry Commle&ion Campua Beautiftealion Program Gvgia Military College Reimbut'B8ment for Custodial Services Gvgia - College Reimbursement for Custodial Services Georgia State Financing and Investment Commission Reimbursement on Construction Projects Hel1I Jones' lncorpa,ated Reimbursement for Diplomas Human Resources, Georgia Department of Cay Care Program James W. Buckley and Associates Architects, Incorporated Refund for CNerpayment Valdosta State University Reimbursement for Custodial SefVioes Wachovia Bank of Gvgia Georgia School Boards Association, Incorporated See notes to the general purpose financial statements. GENERAL ___B!!jJ)__ GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS ___B!!jJ)__ FUND DEBT SERVICE ___B!!jJ)__ 2,400.00 105,246.62 1,179.70 7,295.76 TOTAL 2,400.00 1,179.70 105,246.62 7,295.76 794,363.20 794,363.20 6,488.41 7,516.41 661.89 6,791.23 102,982.00 8,483.88 2,297.96 6,488.41 7,516.41 661.89 6,791.23 102,982.00 8,483.88 2,297.96 34,486.64 8,000.00 1,037.76 500.00 251,748.00 116.22 4,624.88 15,080.oq 66.24 - - - - - - - - 1.935,855.76 34,486.64 8,000.00 1,037.76 500.00 251,748.00 116.22 4,624.88 15,080.00 66.24 1,935,855.76 $ ~ $ ~ $ 2,997,046.96 $ ~ $ 3,297,222.56 29 CAMDEN COUNTY BOARD OF EDUCATION DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30 1994 SCHEDULE "4" PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30 1995 1996 1997 1998 TOTAL DEBT SERVICE 1968ISSUE INTEREST PRINCIPAL $ 68,395.00 $ 13,395.00 $ 55,000.00 65,260.00 10,260.00 55,000.00 67,125.00 7,125.00 60,000.00 68,705.00 3,705.00 65,000.00 $ 269,485.00 $ 34,485.00 $ 235,000.00 CHANGES IN GENERAL LONG-TERM DEBT Bonds Payable at July 1, 1993 Bonds Retired During Period TOTAL 1968ISSUE $ 285,000.00 50,000.00 Bonds Payable at June 30, 1994 $ 235,000.00 MATURITY DATES Semi-Annual Interest Payment Dates Annual Debt Retirement Date FEB 1 -AUG 1 FEB 1 See notes to the general purpose financial statements. - 30 - CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1994 SCHEDULE "5" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Special Instructional Assistance In-School Suspension Mid-tenn Adjustment Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Innovative Programs Mentor Teacher Program Preschool Handicapped Program Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification Teachers' Retirement Lottery Programs Algebra Classrooms Compute<$ in Classrooms Media Center and Library Equipment Safe School& Grant $ 11,066,204.00 1,412,372.00 390,450.00 493,742.00 163,850.00 3,383,420.00 646,991.00 197,307.00 378,925.00 268,264.00 90,587.00 1,224,865.00 -2,278,921.00 1,430,939.00 1,648.00 4,860.00 5,760.00 1,300.00 5,851.68 128,522.00 62,168.08 2,316.00 96,914.00 74,963.81 57,547.08 $ 11,066,204.00 1,412,372.00 390,450.00 493,742.00 163,850.00 3,383,420.00 646,991.00 197,307.00 378,925.00 268,264.00 90,587.00 1,224,865.00 -2,278,921.00 1,430,939.00 128,522.00 1,648.00 4,860.00 5,760.00 62,168.08 1,300.00 5,851.68 2,316.00 96,914.00 74,963.81 57,547.08 Financing and Investment Commission, Georgia State Reimbursement on Construction Projects Through Glynn County Board of Education Psychoeducational Program $ 2,517,480.00 117,186.64 2,517,480.00 117,186.64 OTHER Education, Georgia Department of Reimbursement for Computer Supplies School-Based Leadership Development Activities 2,000.00 994.36 2,000.00 994.36 $ 18,891,409.04 $ 539.617.61 $ 2,517,480.00 $ 21,948,506.65 See notes to the general purpose financial statements. - 31 CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30 1994 SCHEDULE "6" Taxes County Wide Bond Tax County Wide School Tax Railroad Car Tax Real Estate Transfer Tax Other Child Care Fees Donations Indirect Cost Special Revenue Fund Interest Earned Jury Duty Fees Legal Settlement State of Georgia v. Dairymen, Incorporated, et al. Lost and Damaged Books Sales Lunches School Assets Shared Service Contributions Tu~ion Other GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND DEBT SERVICE FUND TOTAL $ 6,453,365.15 154.01 31,576.66 $ 71,804.47 $ 71,804.47 6,453,365.15 1.56 155.57 336.72 31,913.38 208,845.72 1,245.12 16,420.00 41,381.02 $ 2,900.10 15,346.31 $ 7,926.46 1,469.55 208,845.72 1,245.12 16,420.00 66,123.34 2,900.10 3,407.38 7,353.40 3,187.06 8,880.00 11,190.00 1,413.24 825,623.90 1,061.52 1,413.24 3,407.38 825,623.90 7,353.40 3,187.06 8,880.00 12,251.52 $ 6,789,905.62 $ 843,444.97 $ 7,926.46 $ 73,612.30 $ 7,714,889.35 See notes to the general purpose financial statements. - 32 - CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994 SCHEDULE "7" EXPENDITURES Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Compensation and Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Property Services Insurance Communications Commodity Hauling Shared Services Other Purchased Services Suppfies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Federal Indirect Costs Interest Expense Other Expenditures Nonoperating Costs Principal and Interest Land and Land Improvements Building and Building Improvements Equipment Total Expenditures GENERAL FUND SPECIAL REVENUE FUND TOTAL $ 18,556,329.55 $ 3,661,516.81 46,832.88 66,433.48 8,443.83 82,087.98 514,389.69 38,078.31 4,200.00 141,533.00 46,361.94 24,050.00 14,200.43 995,938.75 761,992.58 294,227.58 23,182.46 30,069.00 2,995.10 1,262,861.35 $ 244,728.73 10,512.80 75,210.59 900.00 22,408.32 18.00 630.00 5,030.29 9,735.04 1,093.21 381,308.52 46,776.05 986,559.16 1,364.20 4,814.60 16,420.00 6,481.58 19,819,190.90 3,906,245.54 57,345.68 141,644.07 8,443.83 82,987.98 536,798.01 38,096.31 4,200.00 142,163.00 51,392.23 9,735.04 24,050.00 15,293.64 1,377,247.27 808,768.63 986,559.16 295,591.78 27,997.06 16,420.00 30,069.00 9,476.68 27,003.96 14,988.76 30,420.51 696,014.37 910,171.91 27,003.96 14,988.76 30,420.51 1,606,186.28 $ 26,081,290.97 $ 3,987,024.35 $ 30,068,315.32 See notes to the general purpose financial statements. - 33 - CAMQEN COUNJV BQARP QF EDUCATION SCHEDULE QF EXPENPmJBES BX OBJECT LOTTERY PROGRAMS YEAR ENDED JUNpo 1994 SCHEDULE"8" EXPgND[TURES Operating Coats SUpl)lies Pro'-ional and Technical Services Nonoperating Coats Equipment ALGEBRA CLASSROOMS COMPUTER HARDYIIARE/ SOF1WAREIN CLASSROOMS MEDIA CENTER AND LIBRARY EQUIPMENT SAFE SCHOOLS GRANT $ 2,337.04 $ 6,322.00 348.00 90 244.00 (1) 32,888.30 $ 9,224.51 25,202.22 $ 32851.00 32344.86 TOTAL 66,749.56 s,sn.s1 155439.86 Total Expend~ures 2 337.04 s _ _.ss....,s1..,4_.oo_ 74 963.81 $ 57547.08 $ 231 761.93 (1) Schedule does not include expend~res --in the amount of $701,449.00 which are - with the inception of a capital See notes to the general purpose financial statements. 34. CAMDEN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1994 SCHEDULE "9" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs In Excess of Total Media Allotment Expenditures for Staff Development Programs In Excess of Total Staff Development Allotment for: Cost of Instruction Expenditures per Aucfrt Amount of Underexpenditure for Total Allotment THIRTEEN WEIGHTED AND MEDIA CENTER PROGRAMS STAFF DEVELOPMENT PROGRAM $ 14,424,575.00 $ 167,109.00 $ 14,725,187.24 825,120.49 $ $ 15,550,307.73 $ 169,665.76 169,665.76 -136,425.79 $ 15,413,881.94 $ -7,958.48 161,707.28 $ 0.00 $ 5 401.72 See notes to the general purpose financial statements. - 35 - ev CAf.'QfN COUNTY BQARQ OF EQUCATIQN ANAi YIS 9f MINIM! IM fXPfNQITURE RE91 IIRf;MfNTS - PROGRAM GENERAi Fl JNQ" QUALITY BASICEPVCATIQN PROGRAMS Yf;AR fNQfQ ILJNf 30 1@94 QfNfRA( ANQ CARffR fQUCATION PRQGRAMS r> Kindergarten Grade6 1 3 (1 Sub-Total - K-3 Grade64-5 (") Grade6 6-8 (") Grade69-12 rl H,gh School Laboratories(") Vocational Education Laboratories (j Total General and Career Education Programs SPfCIA[ fDLJCATIQN PRQGRAMS Reg~r Programs Categoiy I(") Categoiy II (1 Categoiy Ill (1 Categoiy IV (1 lbnerant S-ntal Speech Sub-Total - Regular Categoiy V (G'""') (") Total Special Education Programs RfMfQIAI l;QUCATIQN PRQGRAM () MfQJA CftfTER PRQGRAMS Total Thirteen Weighted and Media Center STAFF PfVf\ OPMENT PROGRAMS (1) Co&t d Instruction Profe6SI0081 Oe'1o'e1opment Total Staff' Development () ldentifie& Thirteen Weighted Programs Note (1) S19,045.50oftheallotmentforProfessional De'llelopment has been transferred to Cost of Instruction as authorized by OCGA 20-2-182 See notes to the general purpose financial statements ORIGINAL ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED TOTAL ~ ORIGINAL Mll>TERM REQUIRED 1,404,233.00 3 440,959.00 4,845,192.00 1,601,240.00 1,263,809.70 3,096 863.10 90 4,360,672.80 90 1,441,116.00 150,000.00 600 000.00 750,000.00 118,380.00 1,413,809.70 3 696 863.10 5,110,672.80 1,559,496.00 2,236,682.00 90 2,013,013.80 193,427.00 2,206,440.60 1,262,029.00 90 1,135,826.10 1,135,826.10 561,122.00 90 505,009.80 505,009.60 559,939.00 90 11,066,204.00 503,945.10 9,959,583.60 503,945.10 1,061,807.00 11,021,390.60 1,262,018.00 1,135,816.20 0.00 1,135,816.20 1,262,018.00 150 354.00 1 412,372.00 390,450.00 493,742.00 90 1,135,816.20 90 135 318.60 1,271,134.80 90 351,405.00 90 444.367.80 0.00 $ 1,135,816.20 0.00 0.00 0.00 135 318.60 1 271134.80 351 405.00 444,367.80 13,362,768.00 12,026,491.20 1,061,807.00 13,088,298.20 55,925.50 100 $ 107,924.50 100 55,925.50 $ 107,924.50 3,259.00 $ 59,184.50 107,924.50 163,850.00 163,850.00 $ 3,259.00 $ 167,109.00 $ 13,526,618.00 $ 12,190,341.20 $ 1,065,066.00 $ 13,255,407.20 - 36 - SCHEDULE "10" REQUIRED ALLOTMENT DISTRIBUTION BY RESPECTIVE PORTIONS SALARIES AMOUNT OF UNDEREXPENDITURE FOR REQUIRED REQUIRED ACTUAL ALLOTMENT ALLOTMENT OPERATIONS ACTUAL AMOUNT OF UNDER EXPENDITURE FOR REQUIRED ALLOTMENT 1,379,601.60 s 1,509,205.92 34,208.10 s 24,964.20 3 595 072.20 3 661173.35 101 790.90 153 835.22 4,974,673.80 $ 5,170,379.27 $ 0.00 135,999.00 $ 178,799.42 s 0.00 1,512,725.70 1,819,663.13 0.00 46,770.30 119,435.86 0.00 2,099,751.90 2,107,074.08 0.00 106,688.90 129,205.63 0.00 1,082,829.60 1,628,071.58 0.00 52,996.50 122,229.86 0.00 481,538.70 483,964.68 0.00 23,471.10 23,964.97 0.00 434 989.80 547 904.68 0.00 68 955.30 86,844.05 0.00 s 10 586 509.50 $ 11757057.42 s 0.00 434 881.10 s 660 479.79 $ 0.00 71,337.60 $ 267,581.70 701,146.80 45,293.40 17,001.90 641,886.91 356,229.88 429,893.99 102,184.32 3,879.00 $ 6,076.80 20,252.70 1,644.30 1 602.00 20,492.57 3,776.05 9,613.80 689.04 1,102,361.40 $ 1,530,195.10 $ 0.00 33,454.80 S 34.571.46 s 0.00 131 352.30 198 956.75 $ 0.00 3,966.30 6 634.01 s 0.00 1 233 713.70 $ 1 729151.85 37 421.10 $ 41 205.47 344 994.30 s 725 305.89 $ 0.00 6,410.70 $ 6 939.52 $ 0.00 341 803.80 s 513 672.08 $ 0.00 102,564 00 s 116,495.71 s 0.00 s 12,507,021.30 $ 14 725,187.24 $ 0.00 581,276.90 $ 825.120 49 $ 0.00 $ 12,507,021.30 $ 14.725,187.24 $ 59,184.50 s 107,924.50 67,142.98 102 522.78 0.00 5,401.72 167,109.00 $ 169.665.76 $ 5,401.72 0.00 748,385.90 $ 994,786.25 5,401.72 37 CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30 1994 SCHEDULE "11" BOARD MEMBER ADDRESS Ms. Tricia Smith, Chairperson c) P. O. Drawer 766 st. Marys, Georgia 31558 Mr. Doug Benton () P. 0. Box647 Kingsland, Georgia 31548 Ms. Delores Mitchell Holmes c) 4844 Old Dixie Highway Woodbine, Georgia 31569 Mr. David Knox P. o. Box 10 Kingsland, Georgia 31548 Ms. Jacqueline L. Walls cJ P. o. Box8 Woodbine, Georgia 31569 COMPENSATION TRAVEL $ 1,600.00 $ 1,121.99 950.00 1,300.00 1,439.09 600.00 1,150.00 282.75 $ 5,600.00 $ 2,843.83 cJ Denotes Board Members Serving as of June 30, 1994 See notes to the general purpose financial statements. - 38 - SECTION II COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 18, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Camden County Board ofEducation CUMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Camden County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 1995. Thisreport was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance with laws, regulations, contracts, and grants applicable to Camden County Board ofEducation is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 94CRL-10 The results of our tests indicate that, with respect to the items tested, the Camden County Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:gp 94CRL-10 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 18, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Camden County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Camden County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have applied procedures to test the Camden County Board of Education's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994: (I) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Drug-Free Workplace Act (3) Cash Management (7) Audit Follow-Up/Resolution (4) Federal Financial Reports (8) Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression ofan opinion on the Camden County Board ofEducation's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 94CRL-70 Material instances of noncompliance consist offailures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the Federal financial assistance programs. The results of our tests of compliance disclosed a material instance of noncompliance that is described in the Schedule of Findings and Improper or Questioned Costs. We considered this material instance ofnoncompliance in forming our opinion on whether the Camden County Board of Education's general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated May 18, 1995, on those financial statements. Except as described above, the results of our procedures to determine compliance indicate that, with respect to the items tested, the Camden County Board of Education, complied, in all material respects, with the requirements listed in the second paragraph of this report, and with respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects with those requirements. Additionally, the results ofour procedures disclosed immaterial instances of noncompliance with those requirements which are also described in the Schedule of Findings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:gp 94CRL-70 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 18, 1995 Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Camden County Board ofEducation SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAfOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Camden County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Camden County Board ofEducation's compliance with the requirements governing: (1) Types of Services Allowed or Unallowed (5) Applicable Special Tests and Provisions (2) Eligibility (3) Matching, Level ofEffort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements (4) Reporting These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994. The management of the Camden County Board ofEducation is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 94CRL-80 Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office ofManagement and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report. In our opinion, the Camden County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:gp 94CRL-80 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 18, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members ofthe Camden County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Camden County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. In connection with our audit of the fiscal year 1994 general purpose financial statements of the Camden County Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing: (I) Types of Services Allowed or Unallowed (2) Eligibility Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Camden County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 94CRL-120 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Camden County Board ofEducation had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:gp 94CRL-120 SECTION III INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 18, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Camden County Board ofEducation REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Camden County Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards, and 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 general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit ofthe general purpose financial statements of the Camden County Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the Camden County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, 94ICL-3 assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories: (1) Cash and Cash Equivalents (6) Employee Compensation (2) Inventories (7) General Ledger (3) Revenue/Receivables/Receipts (8) General Fixed Assets (4) Procurement (5) Expenditures/Liabilities/ Disbursements For all ofthe internal control categories listed above, we obtained an understanding of the design ofrelevant policies and procedures and whether they have been placed in operation, and we assessed control risk. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (I) Employee Compensation (2) General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 94ICL-3 Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Camden County Board of Education's financial statements and this report does not affect our report thereon dated May 18, 1995. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, t:L,~ Claude L. Vickers State Auditor CLV:gp 94ICL-3 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 May 18, 1995 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Camden County Board ofEducation SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements ofthe Camden County Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated May 18, 1995. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the Camden County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated May 18, 1995. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Camden County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, I994, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB 94ICL-7 Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 18, 1995. The management of the Camden County Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS (!) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports SPECIFIC REQUIREMENTS (!) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level ofEffort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements (5) Applicable Special Tests and Provisions (6) Other Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1994, the Camden County Board of Education expended 93% of its total Federal financial assistance under major Federal financial assistance programs. 94ICL-7 We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control category: Administrative Requirements A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are also considered to be material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe Camden County Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated May 18, 1995. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~ Claude L. Vickers State Auditor CLV:gp 94ICL-7 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Unauthorized Per Diem Payments Financial Statements Amount: $7,7950.00 Audit Control Number 6201-93-01 The audit report for the year ended June 30, 1989, reported $7,950.00 paid to Board members for the performance ofvarious duties which had not been first authorized by a majority ofthe Board members. The Official Code of Georgia Annotated Section 20-2-55 provides for the compensation of Board members as follows: "(a) In any county for which no local Act is passed, members of the county board shall, when approved by the county board affected, receive a per diem of$50.00 for each day of attendance at meetings of the board and while meeting and traveling within or outside the state as a member of a committee of the board on official business first authorized by a majority of the board, plus reimbursement for actual expenses necessarily incurred in connection therewith. The accounts for such service and expenses shall be submitted for approval to the county school superintendent". Payments made to the Board members without proper prior approval are summarized as follows: BOARD MEMBER EXCESS PAYMENTS Mrs. Vonice Bunkley Mr. Gerald Crummey Mr. H. Edwin Davis Mrs. Susan Flanders Mr. Louis Keene Mrs. Delores Mitchell Mr. Michael Nettles Mr. Tilden Norris Mr. Leroy Reed Mrs. Patricia Smith Mr. J. L. Stanfield $ 1,000.00 550.00 600.00 900.00 450.00 1,050.00 850.00 750.00 650.00 900.00 250.00 $ 7 950 00 As ofthe date ofour audit, this questioned cost had not been resolved. Reimbursement of$7,950.00 should be secured and deposited to the Board's General Fund. CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Records Federal Financial Assistance Audit Control Number 6201-93-02 The audit report for the year ended June 30, 1989, noted that the Camden County Board of Education reported to the United States Department ofEducation on DE form 4019, "Application for School Assistance in Federally Affected Areas", that there were 66 "Federally connected handicapped children" attending the system. These 66 students were claimed under section 3(d)(2)(c) of Public Law 81-974 (CFDA 84.041), which provides for increased funding to be used on behalf of "Federally connected handicapped children", including children with specific learning disabilities. A review ofthe 66 student's classroom attendance records and individualized education programs, revealed that 21 of the students claimed were enrolled only in "gifted" programs and had no learning disabilities, as required by 34 CFR 222.70(c)(l) and (4), and 34 CFR 222.71(a)(4) and (c). These regulations require that the children claimed must be handicapped or have a specific educational and related needs, not including gifted and talented programs. This condition occurred because management failed to correctly identify "Federally connected handicapped children" attending the system. The Board has contacted the grantor agency regarding resolution of this finding. However, as of the date of our audit, no response has been received. AUDIT FOLLOW-UP/RESOLUTION Inadequate Accounting Records Federal Financial Assistance Audit Control Number 6201-93-03 The audit report for the year ended June 30, 1990, disclosed that the Board received $43,473.21 for the P. L. 84-874 (CFDA 84.041) program, which was designated for Special Education purposes. The accounting records for this program did not identify expenditures made with these funds for Special Education. purposes. This condition occurred because the Board failed to maintain adequate accounting records. The Board has contacted the grantor agency regarding resolution of this finding. However, as of the date of our audit, no response has been received. AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 6201-93-05 The audit report for the year ended June 30, 1993, noted the Board received approval for State Capital Outlay Project funding through Georgia State Financing and Investment Commission for Project No. 94-620-010. CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Transfer Local Matching Funds Financial Statements Finding Resolved Audit Control Number 6201-93-05 Both the instructions in Chapter 70 ofthe Georgia Financial Accounting Handbook for Local School Systems and the agreement signed by the Board to receive this funding required that the Board transfer required local matching funds to the Capital Project Fund by June 30, 1993, and designate those funds by project name and number. In the year under review, the Board transferred the required local matching funds to the Capital Project Fund and designated the funds by project name and number. PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 6201-93-04 The audit report for the year ended June 30, 1993, noted that the management ofthe Camden County Board ofEducation had chosen not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of the General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. CURRENT YEAR EXPENDITURES/LIABILITIES/DISBURSEMENTS Outstanding Loan Financial Statements Nonmaterial Noncompliance Audit Control Number 6201-94-01 A review ofthe liabilities at December 31, 1993, revealed that the Board's General Fund had an unpaid loan outstanding in the amount of $1,000,000.00 in violation of Article IX, Section V, Paragraph V of the CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR EXPENDITURES/LIABil.,ITIES/DISBURSEMENTS Outstanding Loan Financial Statements Nonmaterial Noncompliance Audit Control Number 6201-94-01 Constitution of the State of Georgia, which requires that all temporary Joans be payable on or before December 31. This noncompliance occurred because the Board Jacked adequate funds at December 31, 1993, to pay off the outstanding loan. The Board should implement procedures to ensure compliance with the Constitution of the State ofGeorgia regarding outstanding loans. EXPENDITURES/LIABil.,ITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $5,401.72 Audit Control Number 6201-94-02 For the year under review, the Board reported to the Georgia Department ofEducation on DE form 0420 "General Fund QBE Program Expenditure Summary" expenditures totaling $67,142.98 for the Staff Development - Cost ofInstruction Program. A review ofthe underlying source documentation for the Quality Basic Education (QBE) program disclosed that the Board expended more than 15 percent of its initial allotment offunds for Professional Development Stipends for StaffDevelopment - Cost of Instruction Program purposes resulting in an underexpenditure of $5,40 I. 72 for the minimum required allotment of $107,924.50 for the StaffDevelopment - Professional Development Stipends Program. This questioned cost resulted from management's reliance on incorrect information received from the Georgia Department ofEducation, resulting in a violation of Official Code of Georgia 20-2-182. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR ALLOWABLE COST/COST PRINCIPLES Unallowable Expenditures Federal Financial Assistance Major Program Nonrnaterial Noncompliance Amount: $4,009.00 Finding Resolved Audit Control Number 6201-94-03 A review of the salaries charged to the Elementary and Secondary Education Act - Chapter I, Education of Deprived Children Program (CFDA 84.010), 1994 Regular Project, revealed that the Board charged $4,009.00 ofextended day salaries expenditures to the program in error. These salaries should have been charged to the Board's General Fund. Audit adjustments have been recorded to correct these inappropriate charges. The Board should establish appropriate internal controls to ensure that all salaries of employees are charged to the correct programs. In the subsequent period, the Board refunded $4,009.00 to the Georgia Department of Education from the Board's General Fund. ALLOWABLE COSTS/COST PRINCIPLES Incorrect Indirect Cost Rate Used Federal Financial Assistance Nonmaterial Noncompliance Amount: $80.51 Finding Resolved Audit Control Number 6201-94-04 A review of the indirect cost expenditures charged to the Job Training Partnership Act Program (CFDA 17.250), 2C-93-0l Project, revealed an overpayment in the amount of$80.51 to the Board's General Fund. The overpayment was the result of the Board using the incorrect indirect cost rate. The Board should implement procedures to ensure that the correct indirect cost rate is used in computing the Program's indirect cost expenditure. In the subsequent period, the Board refunded $80.51 to the Coastal Private Industry Council from the Board's General Fund. CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR EMPLOYEE COMPENSATION - Financial Statements ADMINISTRATIVE REQU1REMENTS - Federal Financial Assistance Inadequate Personnel Files and Salary Payment Errors Reportable Condition - Material Weakness Major/Nonmajor Programs Nonmaterial Noncompliance Audit Control Number 6201-94-05 For the year under review, the Board failed to properly maintain employee personnel files, to correctly administer the Board's sick leave policy and certified/non-certified salaries, and to provide adequate controls in the payroll accounting functions. Deficiencies were noted as follows: (1) Personnel files did not contain supporting documentation for personnel actions (i.e., salary and name changes, employment and leave status). (2) Certified employee contracts and/or job classifications did not specify the number of days an employee was required to work. (3) Several non-certified positions were paid contrary to the Board approved salary schedule. (4) Non-certified employees in certain positions were paid overtime in accordance with the Fair Labor Standards Act while others in the same positions were not paid overtime. (5) Sick leave was not properly computed in accordance with the Board's sick leave policy. (6) A payroll sample of 130 employees disclosed 27 errors ofoverpayments or underpayments to noncertified employees as follows: Overpayment Underpayment Amount Amount General Fund School Food Service Fund (CFDA 10.550, 10.553 and 10.555) Total $ 2,677.86 $ 1,405.90 844.51 80.64 $ 3 522 37 $ 148654 These deficiencies occurred because of management's failure to adequately monitor personnel files, payroll accounting functions and to administer Board policies. The Board should implement procedures to ensure the following: (1) Personnel files should be properly maintained and should include approved supporting documentation for all changes in an employee's status. CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994 CURRENT YEAR EMPLOYEE COMPENSATION - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Personnel Files and Salary Payment Errors Reportable Condition - Material Weakness Major/Norunajor Programs Nonmaterial Noncompliance Audit Control Number 6201-94-05 (2) Certified employee contracts and/or job classifications should specify the number of days an employee is required to work. (3) Non-certified employees should be paid in accordance with the Board approved salary schedule. (4) The Board should review the Fair Labor Standards Act and apply a consistent method for overtime compensation for all covered employees. (5) Management should adhere to the Board's sick leave policy and properly compute earned sick leave. (6) The Board should review all salary payments made to non-certified employees during fiscal year 1994. The Board should recover all salary overpayments. Payments should be made to employees that were underpaid. ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Material Noncompliance Audit Control Number 6201-94-06 Property management records maintained by the Board for the ESEA - Chapter 1 Program (CFDA 84.010) were incomplete and failed to meet the property management standards as set forth in Chapter 8 of Part I of the Georgia Financial Accounting Handbook for Local School Systems (GFAH). The Board did not maintain an equipment inventory listing or perform an annual physical equipment inventory count. This condition occurred because management claimed not to be aware of the provisions of GFAH. An inventory system should be implemented that provides for the identification of all equipment purchased. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year, when applicable. Periodic physical inventory counts should be made and reconciled to the property records to ensure the accuracy of the Board's inventory records. SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS YEAR ENDED TTJNE 30 1994 EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Financial Statements Nonmaterial Noncompliance Amount: $5,401.72 Audit Control Number 6201-94-02 The school district received a letter dated April 8, 1993 from Dr. Hall Rogers, Associate State Superintendent of Schools, which authorized the school system to exceed the 15% cap concerning StaffDevelopment for FY 94. The Georgia State Board of Education Rule 160-3-3-.04 Professional Development Opportunities pennitted the school district to do as it did. The system submitted a plan and it was approved as we spent the funds. These documents from the Georgia Department of Education clearly pennitted our actions. If the Georgia Department of Education made a mistake, the school district should not be penalized for it. EMPLOYEE COMPENSATION - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Personnel Files and Salary Payment Errors Reportable Condition - Material Weakness Major/Nonmajor Programs Nonmaterial Noncompliance Audit Control Number 6201-94-05 There are some errors in the calculations of several individuals in transportation. This was caused by making the wrong calculation of the salary schedule. Salaries were paid consistent with this error. Note: The Camden County Board of Education has elected not to provide comments for inclusion in this report other than the above.