Audit report, Camden County Board of Education, Kingsland, Georgia, year ended June 30, 1998

AUDIT REPORT CAMDEN COUNTY BOARD OF EDUCATION
KlNGSLAND, GEORGIA YEAR ENDED JUNE 30, 1998

CAMDEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

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

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

19

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

DEBT SERVICE FUND

COMBINING BALANCE SHEET

24

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

26

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

27

3 SCHEDULE OF STATE REVENUE

29

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECT

30

CAMDEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

5 SCHEDULE OF EXPENDI11JRES

WTTERY PROGRAMS

31

ANALYSIS OF MINIMUM EXPENDI11JRE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

6

OVERALL

.

33

7

BY PROGRAM

34

SECTIONll
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-l33

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
{404)656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 23, 1999

Honorable Roy E. Bames, Governor Members of the General Assembly Members of the State Board of Education
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 EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Camden County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Camden County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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.
As described in the notes to the general purpose fmancial 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 fmancial 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.

98ARL-13B

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, 1998, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
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 on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Camden County Board of Education as ofJune 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated April 23, 1999, on our consideration ofthe Camden County Board ofEducation's internal control over fmancial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
The year 2000 supplementary information on Schedule Ifl If is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Camden County Board ofEducation is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Camden County Board ofEducation does business are or will become year 2000 compliant.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Camden County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through 1) and the financial schedules (Schedules 2 through 7), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, andNon-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
98ARL-13B

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~4'~~W.~~ Russell W. Hinton State Auditor
RWH:jb 98ARL-13B

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONGTERM DEBT

TOTALS

(Memorandum Only)

JUNE 30. 1998

JUNE 30. 1997

$

80,141.72

3,408,601.24

2,598,096.n

68,084.47

21,202,692.46

1,nl,203.76

52,344.76 24,537.17

$

128,226.19

126,226.19

51,168.42 23,876.n
65,000.00

126.228.19

21,823,n3.81 3,396.744.60

21,823,n3.81 3.396.744.60

4.730.156.98

25146.744.60 $ 49.832.920.25 $ 9.239.600.70

$
3,396,744.60 21.760.000.00

$ 1,687,923.81
335,589.72 24,714.70
315,603.14 93,886.95
3,396,744.60 21,750.000.00

100,255.39 1,486,630.46
220,695.63 40,261.13
217,170.60 234,035.83 4,730,156.98
85.000.00

$

25.146.744.60 $ 27.574.462.92 $ 7.094,208.04

128,228.19

0.00

$

126.226.19

$

59,529.23

$

350.16

128,226.19

66,852.60

471,006.79

52,344.76 24,537.17 17,627,835.53 1,898,140.11 358,574.23
2,170.449.18
22.258.457.33

51,186.42 23,878.n
111,605.00 1,361.257.95 2,145,294.66

126.226.19 $

25.146.744.60

49.832.920.25 $ 9.239.600.70

-3-

CAMDEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1998

~
Slale Funds Federal Funds Taxes Other Funds
Tolal Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement o1lnstructiona' Services Educational Media Services General Administration School Administration Business Administration Mainlenance and Operation 01 Plant Student Transportation services Central Support services other Support services Food services Operation Community services Operations
capital Outlay Debt service
Principal Inle",st Paying Agent Fees
Total Expenditu....
Excess of Revenues over (under) Expendllu",s
OTHER FINANCING SOURCES (USES)
Accrued Inte",st on Bonds Sold Premium on Bonds Sold Proceeds from General Obligation Bonds
Par Value capital Leases Operating Transfers In Operating Transfers Out
Tolal Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditu.... and other Financing Uses
FUNP BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUNP BALANCE JUNE 30
The notes to the general purpose financial statements are an integral part of this statement.
-4-

GENERAL FUND

SPECIAL REVENUE
FUND

$ 30,586,391.80 $ 1,705,512.14 9,391,787.49 602,939.01
$ 42.286,630.44 $

2,329,122.33 3,089,051.77
1,244,371.39
6,642,545.49

$ 25,590,791.38 $
2,110,295.45 1,290,030.57
963,817.86 475,010.13 3,002,701.57 292,435.46 2,962,446.96 2,857,860.11 225,505.90
11,155.88 37,467.68 421,454.57 366,937.24
731,379.46 130,177.89

1,740,338.81
394,213.20 1,284,213.99
38,756.15 112,318.17 28,923.22
25,770.02 14,957.99
3,077.43 2,775,045.30
216,827.65 25,067.35

41,289,288.13 $

$

997,342.31 $

6,657,509,28 -14,963,79

$

$

-a85,512.86

$

-a85,512.86 $

$

111,629,65 $

973,464.07

206,327.37
206,327.37
191,363.58 469,185.23
1,178.34 660.40

$ 1,065,293.72 $

662,387.55

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$

996,281,53

1,891,579,68 $ 189,958.76

$ 3,On,819.97 $

$
6,708,42 3,466.93
10,175,35 $

33,911,795,66 4,n4,563,91 11,290,075,59 2,040,736,09
52,017,171.25

32,211,452,42 4,089,746,92 9,020,683,77 1,899,942.16
47,221 ,825,27

$

130,500,00

5,118,926.94 385,205.25 $ 87,956,79
5,722,588,98 $ $ -2,644,769.01 $

$
65,000,00 1,852.50 487.40
67,339.90 $ -57,164.55 $

27,331,130,19 $
2,504,508.65 2,574,244.58 1,002,374,01
587,328.30 3,029,624.79
422,935.46 3,008,216.98 2,872,838.10
225,505.90 14,233.31
2,812,512.98 421,454,57
5,485,864.18
1,398,412.38 245,054,53 487,40
53,738,726,29
-1,719,555.04

24,048,395,97
2,319,946,83 2,306,534.81
953,458.71 653,705.64 2,508,560.63 251,482.97 2,874,650,73 2,146,244,63 207,n4,02
9,327,08 2,711,002,19
335,753.66 4,158,949.92
1,294,337.91 337,632,67 485,15
47,116,243,52
105,581,75

$

$

17,521,80

21,750,000,00

679,185.29

$ 22,446,707.09 $

$ 19,801,938.08 582,611.79

83,357.17 $ 63,357.17 $

63,357,17 17,521,80
21,750,000,00
885,512,66 -885,512,66
21 ,830,878.97

6,192.62 $ 120,033.57

20,111,323,93 2,145,294,66

1,178.34 660.40

623,054,00 1,345,540.60 -1,345,540.60
623,054.00
728,635.75 1,393,234.61
23,751.86 -327.56 _

$ 20,364,549.87

126,226,19

22,258,457.33 $ 2,145,294.66

-5-

CAMDEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNpS
YEAR ENDEp JUNE 30 1998

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 29,015,402.00 $ 30,586,391.80

1,311,766.00

1,705,512.14

9,145,262.00

9,391,787.49

255,000.00

602,939.01

Total Revenues

$ 39,727,450.00 $ 42,286,830.44

EXPENDITURES

Current Instruction support Services Pupil Services Improvement of Instructional Servioes Educational Media Services General Administration SChool Administration Business Administration Maintenance and Oparation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Oparation Communlly Services Oparations
CapitalOutiay Debt Service

$ 24,247,216.00 $ 25,590,791.38

2,150,390.00 1,304,683.97
984,765.00 465,048.00 3,282,735.00 638,898.00 3,180,019.00 2,718,495.00 228,925.00
600,392.00

2,110,295.45 1,290,030.57
963.617.86 475,010.13 3,002,701.57 292,435.46 2,982,446,96 2,657,880.11
225,505.90 11,155.88 37,467.68
421,454.57 366,937.24 661,557.37

Total Expendtiures

$ 39,799,546.97 $ 41,289,288.13

Excess of Revenues over (under) Expendtiures OTHER FINANCING SOURCES (USES>

$

-72,096.97 $

997,342.31

Other Sources Other Uses

$ ~.000.00 $ -865,512.66

Total Other Financing Sources (Uses)

$ -450,000.00 $ -865,512.86

Excess of Revenues and Other Financing Sources over (under) Expendtiures and Other Financing Us.. $

-522,098.97 $

111,829.65

FUND BALANCE JULY 1 1997

835,866.61

973,464.07

Adjusbnenls

-245.54

FUND BALANCE JUNE 30 1998

$ 313,544.10 $ 1,085,293.72

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,762,845.00 $ 2,329,122.33

2,106,570.00

3,069,051.77

970,000.00

1,244,371.39

$ 4,639,415.00 $ 6,642,545.49

$ 1,430,525.00 $ 1,740,338.81

191,081.00 774,968.00
38,714.00 217,600.00

394,213.20 1,264,213.99
38,756.15 112,318.17 26,92322

3,925.00 14,118.00 3,500.00
2,141,344.00

25,770.02 14,967.99
3,077.43 2,775,045.30

241,895.00

$ 4,815,775.00 $ 6,657,509.28

$

23,640.00 $

-14,983.79

$

206,327.37

$ 206,327.37

23,640.00 $ 401,296.80
12,371.83

191,383.58 394,142.04

437,308.43 $

585,505.62

The notes to the general purpose financial statements are an integral part of this statemenl -6-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNlFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Camden County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain govermnental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available fInancial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by govermnental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these fInancial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1998, a substantial number of
- 8-

CAMDEN COUNTY BOARD OF EDUCATION

EXlllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion ofthe compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Camden County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis report:

-9-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 1997

$ 469,185.23

Adjustments Inventories - July 1, 1997 Food Donated Commodities Purchased Foods

-51,166.42 -23.876.77

Fund Balance July 1, 1997 (Budget Basis)

$ 394,142.04

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

191.363.58

FUND BALANCE JUNE 30, 1998 (Budget Basis)

$ 58550562

CASH AND CASH EQUIVALENTS

COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Camden County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on November 6, 1997 (levy date). Taxes were due on January 30,1998. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Camden County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board.

- 10-

CAMDEN COUNTY BOARD OF EDUCATION

EXlDBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 1997 tax year (calendar year) for the Camden County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

~mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,891,579.68 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $29,108,420.32 has been collected or on December 30, 2003, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the govemment. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types ofinterfund transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

- 11 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shal1 be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone ofor any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 12-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 2: DEPOSITS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $4,912,542.56. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1998, as follows:

Risk Category

Bank Balance

1

$ 160,141.72

2

2,490,062.50

3

2.262.338.34

Total

$491254256

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;

errors or omissions; job related illness or injuries to employees; natural disaster and unemployment

compensation.

.

- 13 -

CAMDEN COUNTY BOARD OF EDUCATION

EXlDBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 4: RISK MANAGEMENT

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning o f Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1997 1998

$

0.00 $

4,328.00 $

4,328.00 $

0.00

$

0.00 $

1.474.99 $

1.474.99 $

0.00

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

The Board has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Superintendent Each Principal Each Assistant Principal Vocational Director Athletic Director Head Football Coach

$ 20,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Camden County Board ofEducation entered into an agreement on June 1, 1994, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease of various school

- 14-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "DIt

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 5: GENERAL LONG-TERM DEBT

facilities. Under the terms ofthis agreement, the Board will make semi-annual payments through Janumy 15, 2003, The lease contains an annual renewal clause.

The Camden County Board of Education has also entered into various lease agreements as lessee for equipment. These lease agreements qualifY as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date of their inception.

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1997

4.0% -4.4%

$ 21 75000000

The changes in General Long-Term Debt during the fiscal year ended June 30,1998, were as follows:

Balance July I, 1997
Additions
Deductions Payments
Balance June 30, 1998

Capital Leases

GSBA

Other

General Obligation
Bonds

Total

3,155,000.00 $ 1,575,156.98

65,000.00 $ 4,795,156.98

21,750,000.00 21,750,000.00

47000000

863412.38

65000.00 1398412.38

$ 2 68S 000 00 $ 711 74460 $ 21 75000000 $ 25 146744 60

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Vear Ended June 30
1999 2000 2001 2002 2003
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments

Capital Leases

GSBA

Other

General Obligation
Bonds

Total Debt

$ 621,225.00 $ 618,195.00 618,715.00 617,500.00 619500.00

452,848.20 $ 2,756,339.79 $ 3,830,412.99 149,443.07 4,828,957.50 5,596,595.57 185,941.85 5,502,045.00 6,306,701.85
5,690,655.00 6,308,155.00 6707700.00 7327200.00

3,095.135.00 $ 788,233.12 $ 25 485 697 29 $ 29 369 065 41

410 135.00

76488.52

$ 2685000 00 $ 711 74460

- 15 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditW'es in the amount ofS505,383.95 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount ofS385,738.98

Paid to the Teachers Retirement System ofGeorgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$8,659.97

Office of Treasury and Fiscal Servi~es Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$110,985.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the
Board as of June 30, 1998, together with funding available:

Uneamed Executed Contracts

Funding Available From State

Lottery 98/97S-620-005

$ 207 425 96 S 85 4n 36

The amounts described in this note are not reflected in the general purpose financial statements.

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be
immaterial to its overall financial position.

- 16 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO lEE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30,1998

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION
Substantially all teachers, administrative and clerical personnel employed by local school systems are covered
by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE
Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordar1ce with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1998 1997 1996

100% 100% 100%

$ 3,266,541.08 $ 2,852,663.14 $ 2,606,333.96

- 17 -

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1998

EXHIBIT"E"

~ Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1998 JUNE 30, 1997

714,008.35 $ 119,948.27 $ 324,334.67 $ 1.158.291.29 $ 835,454.37

17,268.00

269.n6.72

287.046.72

200.392.01

52,344.76 24.537.17

52,344.76 24,537.17

51,166.42 23.876,n

$ 808,158.28 $ 119,948.27 $ 594,113.39 $ 1.522,219,94 $ 1,110,889.57

LIABILITIES AND FUND EQUITY

b!aI!I.lJI!5.

Accounts Payable Salaries Payable ExpIred Grant Balances Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

Unreserved

Undeslgnaled

Total Fund Equity

$

26,512.89 $ 119,608.00 146,120.89 $
52,344.76 24,537.17 585,155.46 $ 662.037.39 $

26.581.93 $ 93,311.19
55.15

448.433.15 $ 122.670.53 24,659.55

119,948.27 $ . 593,763.23 $

$

350.16 $

0.00 0.00 $

0.00 350,16 $

499,527,97 $ 335,589.72
24,714.70 859.632.39 $
350.16
52,344.76 $ 24,537,17 585.155.46 662,387.55 $

380.747.58 220.695.63
40.261.13 641,704.34
51.166.42 23.876.n 394.142.04 469,185.23

Total Uabillties and Fund Equity

808,158.28 $ 119,948.27 $ 594.113.39 $ 1.522,219,94 $ 1.110.889,57

see notes to the general purpose financial statements.

-18-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1998

EXHIBIT'P

~
SIale Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support services Pupil services Improvement of Instructional services Educational Media Services General Administration SChool Administration Maintenance and Operation of Plant Student Transportation services Other Support Services food services Operation Community Services Operations
Debt Service Principel
Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operatin9 Translars In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOl FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

203.276,00 S 1,515,229,73
1,244,371.39

1,007,956,04 S

1,117,890,29 S 1,563,622,04

2.329.122.33 S 3,059.051.77 1,244,371.39

1,992,822,54 2,758,370.05 1,125,765,45

2,962,877.12 S 1,007,956.04 $ 2,671,712.33 $ 6,642,545.49 $ 5,876,958.05

S 578,936.34 $ 1.161,402.47 $ 1,740,338,81 $ 1.420.111.88

2,771,863.70

146,856.89 10,794.72 34,765.68 6,411,03
3,181.60

247,356.31 1.273,419.27
38,756.15 77,552.49 20,512.19 25,770.02 14,957.99 3.077.43

394,213.20 1,284,213.99
38,756.15 112,318,17 26,923.22 25,770.02 14,957.99
3,077.43 2,775,045.30

236.468.75 1,251,111.75
33,653.73 75,392.75
1,042.45 55,184.90 22,346.84
6,775.04 2,672,997.89
4,112.46

216,827.65 25,057.35

216,827.65 25,067.35

134,128.10 25,851.90

$ 2.771,863.70 S 1,022,841.26 $ 2,862.804.32 $ 6,657.509.28 $ 5,938,158.24

S 191.013.42 $

-14,885.22 $ -191.091.99 $

-14,963.79 $

-61,200.19

191,013.42 $ 469,185.23
1,178.34 660.40

14,685.22

191442.15

205 327.37

183,260.35

0.00 $ 0.00

350.16 $ 0.00

191,363.58 $ 469.185.23

122,050.16 323,700.77

1.178.34 660.40

23,751.86 -327.56

FUND BALANCE JUNE 30

662.037.39 $

0.00 $

350.16 $ 662,387.55 $ 469.185.23

see notes to the general purpose financial statements.

-19-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1998

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabililies FUND EQUITY
Fund Balances Reserved For Federal Capilal Outlay For Purposes of Bond Issue For SPLOST Project For Stale Capilal Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

500,000.00

$ 18,074,875.55

$

500,000.00 $ 18,074,875.55

$

284,757.47

162,282.55

$

447,040.02

$ 17,627,835.53

$

500,000.00

0.00

$

500,000.00 $ 17,627,835.53

$

500,000.00 $ 18,074,875.55

See notes to the general purpose financial statements. -20 -

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

FEDERAL PROJECTS

$

$ 1,898,140.11 $

318,674.79

LOTTERY PROJECT

TOTALS

JUNE 30, 1998

JUNE 30,1997

682,591.96 $ 1,182,591.96

85A72.36

20,377,162.81 $ 1,395,586.05

$ 1,898,140.11 $

318,674.79 $

768,064.32 $ 21,559,754.77 $ 1,395,586.05

$

318,674.79

$

603,432.26 $

100,255.39

162,282.55

261,512.44

$

315,603.14

315,603.14

217,170.60

93,886.95

93,886.95

234,035.83

$

318,674.79 $

409A90.09 $ 1,175,204.90 $

812,974.26

$ 1,898,140.11
0.00 $ $ 1,898,140.11 $

$ 0.00 0.00 $

$ 358,574.23

$ 17,627,835.53
1,898,140.11 358,574.23

0.00

500,000.00

358,574.23 $ 20,384,549.87 $

471,006.79
111,605.00 0.00
582,611.79

$ 1,898,140.11 $

318,674.79 $

768,064.32 $ 21,559,754.77 $ 1,395,586.05

- 21 -

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1998

REVENUES

State Funds

Taxes

Other Funds

$

Total Revenues

$

EXPENPITURES

Current

Support Services

Business Administration

Professional and Technical services

Capital Outlay

Professional and Technical Services

Communication

other Purchased Services

Supplies

Land and Land Improvements

Building and Building Improvements

Equipment

Debt service

Principal

$

Interest

Total Expenditures

$

Excess of Revenues over (under) Expenditures

$

OTHER FINANCING SOURCES IUSES)

Premium on Bonds Sold

Proceeds from General Obligation Bonds

Par Value

Operating Transfers In

$

Operating Transfers Out

Total Other Financing Sources (Uses)

$

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

FUND BALANCE JULY 1

REGULAR

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

0.00 $ 0.00 $

$ 133,536.30
133,536.30 $

1,891,579.68 6,560.43
1,898,140.11

$

130,500.00 $

0,00

119,636.78

146,413.01 88,586.12 522,520.00

1,021,566.73

6,749.41

6,749.41 $ ~,749.41 $

2,029,222.64 $ -1,895,686.34 $

0.00 1,898,140.11

$ 506,749.41 506,749.41 $

17,521.80 21,750,000.00 -2,243,999.93 19,523,521.87

500,000.00 $ 0.00

17,627,835.53 $ 0.00

1,898,140.11 0.00

FUND BALANCE JUNE 30

$

see notes to the general purpose financial statements.

500,000.00 $ 17,627,835.53 $ 1,898,140.11

-22 -

EXHIBIT"H"

FEDERAL PROJECTS

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 1998

JUNE 30,1997

$

996,281,53 $

996,281,53 $ 2,720,133,47

1,891,579,68

$

49,862.03

189,958.76

150,000,00

$

49,862.03 $

996,281,53 $ 3,077,819,97 $ 2,870,133.47

$

130,500,00

$

66,182,07 $

190,362,89

376,181,74 $

198,558,34

1,523,40

1,523,40

73,102.00

219,515,01

145,947,18

234,533,30

1,376.00

102,153.44

624,673.44

93,044.40

2,555,942.27

2,555,942.27

3,526,090.35

84,991.05

1,106,557.78

5,490.00

378,455.84 87,956.79

385,205.25 87,956.79

311,990.66 24,139.48

$

532,594.70 $ 3.154,022.23 $ 5,722,588.98 $ 4,160,689.23

$

-482,732.67 $ -2,157,740.70 $ -2,644,769.01 $ -1 ,290,555.76

$

17,521.80

21,750,000.00

$

11,725.88 $ 2,404,709.93

2,923,185.22 $ 1,162,280.25

-2,243,999.93

$

11,725.88 $ 2,404,709.93 $ 22,446,707.09 $ 1,162,280.25

$

-471,006.79 $

471,006.79

246,969.23 $ 111,605.00

19,801,938.08 $ 582,611.79

-128,275.51 710,887.30

$

0.00 $

358,574.23 $ 20,384,549.87 $

582,611.79

-23-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 1998

EXHIBIT"I"

~ Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30 1998

JUNE 30, 1997

$

60,141.72

$

60,141.72 $

120,346.33

880.78 $

65.203.69

66,084.47

1,537.74

Total Assets

$

61,022.50 $

65,203.69 $

126,226.19 $

121,886.07

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undesignated

Total Fund Equi1y

$

61,022.50 $ 0.00
61,022.50 $

$

1,852.50

65,203.69 $ 0.00
65,203.69 $

126,226.19 $ 0.00
126,226.19 $

88,852.50 53,181.07 120,033.57

Total liabilities and Fund Equi1y $

61,022.50 $

65,203.69 $

126,226.19 $

12U86.07

See notes to the general purpose financial statements.

-24-

CAMDEN COUNTY BOARD OF EPUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30 1998

EXHIBIT"J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE30 1998

JUNE 30, 1997

REVENUES

Taxes Other Funds

$

6,708.42

$

6,708.42 $

88,455.86

1.620.41 $

1,846.52

3,466.93

2.201.22

Total Revenues

$

8.328.83 $

1.846.52 $

10.175.35 $

90.657.08

EXPENDITURES

Debt service Principal Interest Peying Agent Fees

$

65,000.00 $

1,652.50

487.40

0.00 $

65,000.00 $ 1.852.50 487.40

60,000.00 8,9n.SO 485.15

Total Expenditures

$

67.339.90 $

0.00 $

67,339.90 $

69,462.65

Exoess of Revenues over (under) Expenditures

$

-59,011.07 $

1.848.52 $

-57,184.55 $

21.194.43

OTHER FINANCING SOURCES

Accrued Interest on Bonds Sold

63,357.17

63.357.17

Exosss of Revenues and Other Financing Sources

over (under) Expenditures

$

-59,011.07 $

65,203.69 $

6,192.62 $

21,194.43

FUND BALANCE JULY 1

120.033.57

0.00

120,033.57

98.839.14

FUND BALANCE JUNE 30

$

61.022.50 $

65.203.69 $

126.226.19 $

120:033.57

See notes to the general purpose financial statements.

-25-

CAMDEN COUNTY BOARD OF EDUCATION

SCHEDULE "I"

SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30. 1998

At ]lUle 30,1998, the Camden COlUlty Board of Education had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concem for the Board's financial accolUlting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue.
Assessment Stage - The actual process of identifying all ofits systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
ValidationfTesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely
affected. As of]lUle 30, 1998, the financial accolUlting system was determined to be at the Awareness Stage.
The Board's financial accolUlting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As of]lUle 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accolUlting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating
system was installed at all GENESIS sites as of December 9,1998. The Georgia Department of Education
has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accolUlting software.

See notes to the general purpose financial statements. 26 -

CAMDEN COUNTY BOARD OF EDUCATION
SCHEDULE OF EXpENDITURES OF FeoeBAL AWARPS
YEAR ENDEP JUNE 30 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAMIGRANT

CFOA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U, S. Dep.rtment of P...Through ~ Gaorgi. Department of Education Food .nd Nutrition Program Food Services School Bre.kfast Program 1998 Grant N.tion.1 School Lunch Program 1998 Grant Food Distribution Program (1) Pess-Through from Office of School Re.dlne.. Food .nd Nutrition Program ChDd .nd Adult C.re Food Program 1998 Contract

10.553
10.555 10.550

NJA $
NJA NJA

380,017.89
978,743.05 $ 158,468.79

(2)
2,615,394.91 (3) 158,468.79

10.588

NJA

17,324.38

(4)

Tot.1 U. S. Department of AgricuRure

$ 1,532,554.11 $ 2,771,863.70

Education, U. S. Dep.rtment of

Direct

Imp.ctAid 1998 Grant
P.ssThrou9h from Gaorgl. Dep.rtment of Education

84.041

EI.menlary and Secondary Education Act

Title I

Grants to Local Education.1 Agencies

1998 Grant

84.010

NJA

Title!!

Eisenhower Professional Development

1997 Grant

84281

NJA

1998 Grant

84.281

NJA

Tille VI

Innovative Education Program Strategies

1998 Grant

84298

NJA

Goals2QQQ

Slate .nd Local Education Systemic Improvement Grants

1997 Grant

84.278

NJA

1998 Grant

84.278

NJA

Individuals with Disabilities Educallon Act

P.rt B SpecIal Education

Flow Through 1998 Grant
Preschool 1998 Grant
Severely.Emotionally Disturbed

84.027

NJA

84.173

NJA

1998 Grant

84.027

NJA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1998 Grant

84.048

NJA

Tech-Prep Educallon

1998 Grant

84243

NJA

1,506,502.26

(5)

629,307.74 $

629,307.74

5,547.09 22,843.06

5,547.09 22,843.06

38,714.00

38,827.88 (3)

14,046.00 100,040.00

14,048.00 99,689.84

415,160.52 83,880.10 147,927.93

415,160.52 83,880.10 147,927.93 (6)

49,981.87 5,000.00

188,875.94 (3) 6.432.43 (3)

Tolal U. S. Dep.rtment of Education

$ 3,018,952.57

1,652,540.53

27

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAMtGRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Dired Department of the Navy R.O.T.C. Program 1998 Grant Troops to Teachers Program 1998 Grant Public Law 102-368 as Amended and section 386 of Public Law 102-484 1998 Grant
Total U. S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$

33,871.73

7,500.00

181,685.50 $_--,2.,2",3,,,!05~7",,.2,,,,3

83,177.92 (3) 9,076.18 (3)
(4) 92,254.10

Total Federal Financial Assistance NlA=Not Available

4,774,563.91 $ 4,516,658.33

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated ccmmoditiesreceived 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 1998 National Schoo Lunch Program.
(3) Expend"ures for this program indude State, andlor 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 pro9ram do not require reporting of expend""res. (6) Includes Federal Assistance of $114, 109.81 provided to subrecipients.
Major Programs are identified by an asterisk r> in front of the CFDA number.
The acCompanying schedule of expend"ures of Federal awards includes the Federal grant adivily of the Camden County Board of Education and is presented on the modified aeaual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

-28-

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1998

SCHEDULE "3"

AGENCYIFUNDING
GRANTS Educalion, Georgia Department of Quality Basic Education General and Coreer Education Programs Special Education Programs Remedial Education Program Media Center Programs Slaff Development Programs Indirect Cost Pupil Transportation Regular Bus Repla~ment Limited English Speaking Middle School Incentive Progrem Special Instructional Assistance In-School SuspansIon Mid-tenn Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education other State Programs Ad Valorem Tax Adjustment A1Iemative Program Apprenticeship Program Al-Rlsk Summer School Program Environmental Science Program Hea1lh Insurance Innovative Programs Mentor Teacher Program Preschool Handlcappad Program Remedial Summer School Program Severely Emotionally Disturbed Teachers' Retirement Lottery Programs A1Iemative School Program Exceptional Growth-Capital Outlay Instructional Technology Assistive Technology Classroom Technology
Office of School Readiness Pre-Kindergarten Program
OffIce of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 17,308,404.00 2,894,739.00 732,443.00 745,271.00 237,559.00 4,778,858.00
819,193.00 262,057.00 24,140.00 635,445.00 440,675.00 116,070.00 629,701.00 77,778.00 86,527.00 -2,521,912.00 2,232,768.00
$ 1,870.00
119,551.00 60,000.00 45,000.00 26,971.41
1,500.00 385,738.98
5,000.00 2,256.00 110,503.00 8,640.44
8,659.97

203,276.00
1,117,890.29 4,132.00 $ 12,622.85
241,895.00

749,308.19

110,985.00

$ 996,281.53

17,308,404.00 2,894,739.00
732,443.00 745,271.00 237,559.00 4,778,858.00
819,193.00 262,057.00
24,140.00 635,445.00 440,675.00 116,070.00 629,701.00 77,778.00 86,527.00 -2,521,912.00 2,232,768.00 203,276.00
1,870.00
119,551.00 60,000.00 45,000.00 26,971.41
1,500.00 385,738.98
5,000.00 2,256.00 110,503.00 8,640.44 1,117,89029 8,659.97
4,132.00 996,281.53
12,622.85 241,895.00

749,306.19

110.985.00

30,586,391.80 $ 2.329,122.33

996,281.53 $ 33,911,795.56

See notes to the general purpose financial statements.

-29-

CAMDEN COUNTY BOARD OF EPUCATIDN SCHEDULE OF APPROVEP LOCAL OPTION SALES TAX PROJECT
YEAR ENDED JUNE 30 1998

SCHEDULE "4"

~
The acquisition, conslnJcllon and equipping 01
a new elementary school and a new AlternatIVe
SChool and PaychoeducaUonal center;
renovations of and eddltlons to Camden
County High School, Camden Middle School, SI. Mary's Middle School, SI. Mary's Elementary SChool, Sugannlll Elementary School and Woodbine Elementary School; the acqUisition
of new technology, equipment and fumlture for
ell schools system-wlde; the acqulsltlon, construction, end equipping of the science wing and the vocaUonal wing eI C8mdan County High School, which are currenlly being leased from the Georgia School Boards
Assodatlon, Inc., and a new middle school; renQYaUons of and additions to St. Mary's
Middle School and cemden Middle School; classroom additions as neaded for all schools system-wide

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

$ 31.000.000.00 $ 32,446,390.00 $

AMOUNT EXPENDED IN CURRENT
YEAR@)
3:740,628.38

AMOUNT EXPENDED IN PRIOR
YEARS
0.00

(1) The Board's original cost esUmate as specified In the resolution calling for the Imposltlon of the Local Option Sales Tex.
(2) The Board's current esUmete of total cost for each project. Includes al cost from project klceptlon to completion.
(3) The voters of Camden County approved the imposition of a 1% BIles tax to fund the above project and retire associated debt, Amounts expendad for 1I11s project may Include ..... tax proceeds, stata, local property taxes andlor other funds over the life of the project.

See notes to the general purpose financial statements.

30

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES
LOTTERY PROGRAMS YEAR ENDED JUNE 30 1998

SCHEDULE"S"

EXPENpmJRES
CUTTllflt InstnJction Support 5ervices Pupil 5ervices Improvement of Instructional 5ervices General Administration SChool Administration
Food services Operation
Debl5ervlce Principal Interest

ALTERNATlVE SCHOOL PROGRAM

INSTRUCllONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PREKlNDERGARTEN PROGRAM

4,497.09

12,822.85

8,411.03

218,827.85 25,087.35

581,816.40
148,858.89 10,794.72 34,765.68
3,181.80

TOTAL
578,936.34
148,858.89 10,794.72 34,765.68 6,411.03 3,181.80
216,827.85 25,087.35

Total Expenditures

10908.12 $

12822.85 $

241895.00 $ _ _ _....:70;5.7.4..1:.;:5;::.2.::,9 S . 1.022,841.26

RECAP:
salaries and Benefits Pre-Kindelgarten Program
OIher Expendltu"'. Altemative SChool Program Instructional Technology _live Technology Class"""" Technology Pre-KinderlIarten Program

705,168.79
10,908.12
12.822.85 241,895.00
52.248.50

1022 841.28

see notes to the general purpose financial statements.

-31-

CAMDEN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND QUALITY BASIC EDUOOION PROGRAMS YEAR ENDED JUNE 30 1998

SCHEDULE ''6"

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 per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

22,318,468.00 $

661,658.00

$

23,086,855.54

1,334,759.37 $

1,195,445,87

$

24,401,614.91

-172,736.13

$

24,228,878.78

$

0.00 $

0.00

See notes to the general purpose financial statements. - 33 -

CAMDEN COUNTY BOARP OF EDUCATION
ANALYSIS OF MINIMUM EXPENPITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC ED\lCATION PROGRAMS
yEAR ENDED JUNE 30 1998

GENEBALANDCAREEREPUGATIONPRQGRAMS Kindergarten (')
Grades 1-3 (') Sub-Total -1<-3
Grades 4 - 5 (') Grades 6-8 (')
Grades 9 -12 (')
High SChool Laboratories r)
Vocational Education Laboratories rJ
Tolal General and carser Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs category IrJ Cstegoryll(') Cstegory III (') Cstegory r-J (oJ Cstegory V (0)
Sub-Tolal- Regular
Cstegory VI (Gifted) rJ Total Special Education Programs
REMEDIAL EDUCATION PROGRAM '1 Tolal Fourteen Weighted Pmgrams
MEOlA CENTER PROGRAMS
Salaries Operations
Tolal Media Canter Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

2,101,980.00

$ 1,891,764.00 $

5,271,233.00

4,744,109.70

7,373,193.00 90 $ 6,635,873.70

2,322,825.00 90

2,090,542.50

3,744,638.00 90

3,370,174.20

1,918,481.00 90

1,726,632.90

1,224,503.00 90

1,102,052.70

724,764.00 90

652,287.60

$ 17,308,404.00

15,5n,563.60 $

-11,522.00 248,141.00 236,619.00 124,741.00 186,372.00 129,643.00 49,867.00 52,347.00 n9,389.00

$ 2,607,627.00

$ 2,346,864.30 $ -110,158.00

2,607,627.00 287,112.00
2,894,739.00 732,443.00
20,935,586.00

90

2,346,864.30

90

258,400.60

2,605,265.10 $

90 $

659,198.70 $

18,842,027.40 $

-110,156.00 39,869.00 -70,289.00
-100,087.00 609,013.00

601,991.00 90 143,260.00 90
745,271.00

541,791.90 128,952.00
670,743.90

21,609.00 6,789.00
28,598.00

Total Fourteen Weighted and Media Center Pmgrams
STAFF DEVELOPMENT PRQGRAMS Cost of Instruction Professional Development

21.680,857.00

191512,n1.30

8371611.00

68,938.00 168,623.00

$

68,936.00

166,623.00

2,687.00 0.00

Total Stall Development Pmgrams r) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

237,559.00 100 $

237,559.00

2.687.00

- 34 -

SCHEDULE '7"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED AUOTMENT

$ 1,880.242.00

2,170,162.69

60,719.35

2,230,882.04

4,992.250.70

5,606,806.74

414,122.n

6,020,929.51

$ 6,872,492,70

7,776,969.43

474,842.12

8.251,611.55 $

0,00

2,215,283.50

2,740,421.90

172,050.83

2,912,472.73

0.00

3,556,546.20

3,638,056.33

208,904.45

3,846,960.78

0.00

1,856,275.90

2,478,724.53

150,296.82

2.629,021.15

0.00

1,151,719.70

1,127,868.14

70,993.30

1.198,861.44

0.00

704,634.60

6n.125.00

47,381.48

724,506.48

0,00

16.358,952.60

18,439,165,33 $ 1.124,468,80

19,563,634.13

2.238,706.30 $

345,982.07 451,000,95 1,663,197.68 222,589.46
58,408.21

11,719.66 6,850,91 5,4n.80 5,764.58

357,701.73 457,851,66 1,868,675.28 228,354.04
58,408.21

2,238,706.30

2,941,178,37

29,812.75

2,970,991,12

0.00

298,269.80

317,200.17

25,016.80

342.216.97

0.00

2,534.976.10

3,258,378.54

54,829.55

3,313.208.09

$

559,111.70 $

562.020.04

16,147.52

578,167.56

0.00

$ 19,451,040.40

22.259.563.91

1,195,445.87

23.455.009.78

$

563,600.90

807,291.63

807,291.63

0.00

135,741.00

139,313.50

139,313.50

0.00

$

699,341,90

807,291.63

139,313,50

946,805.13

$ 20,150,382.30

23,066:855.54 $ 1.334.759.37 $ 24,401,614.91

0.00

71,623.00 168,623.00
240,246.00

218,663,59 24,470.31

218,663.59 24,470.31

243,133.90

243,133.90 $

0.00

- 35 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
April 23, 1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Camden County Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofCamden County Board ofEducation as ofand for the year ended June 30, 1998, and have issued our report thereon dated April 23, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Camden County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Camden County Board ofEducation's intemal control over fmancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the intemal control over fmancial reporting. However, we noted a certain matter involving the internal control over financial reporting and its
98YB-40

operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Camden County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-620l-98-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. Our consideration of the internal control over financial reporting would not necessari1y disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessari1y disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is also considered to be a material weakness.
This report is intended for the iIiformation of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~ tJ. ~.::::
Russell W. Hinton State Auditor
RWH:jb 98YB-40

operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Camden County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-620l-98-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. Our consideration of the internal control over financial reporting would not necessari1y disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessari1y disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is also considered to be a material weakness.
This report is intended for the iIiformation of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~ tJ. ~.::::
Russell W. Hinton State Auditor
RWH:jb 98YB-40

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 23, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Camden County, Board of Education
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
u.s. We have audited the compliance of Camden County Board of Education with the types of compliance
requirements described in the Office ofManagement and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Camden County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Camden County Board of Education's management. Our responsibility is to express an opinion on Camden County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates. Local Governments. and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Camden County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Camden County Board of Education's compliance with those requirements.

98SA-10

In our opinion, the Camden County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30,1998.
Internal Control Over Compliance
The management of Camden County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and perfonning our audit, we considered Camden County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a ~or Federal program being audited may occur and not be detected within a timely period by employees in the normal course of perfonning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
'(1, ~_,f& k).4~
Russell W. Hinton State Auditor
RWH:jb 98SA-IO

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

CAMDEN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6201-93-04 FS-6201-97-01

Further Action Not Warranted Unresolved - See Corrective ActionlResponses

CORREcrIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-6201-97-01

Due to current staffing limitations and budgetary considerations prohibiting the- hiring of administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements;

SECTIONN FINDINGS AND QUESTIONED COSTS

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
SUMMARY OF AUDITOR'S RESULTS
1. Type of Reoort Issued on the Financial Statements The auditor's opinion on the Camden County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Camden County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Camden County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Camden County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Camden County Board of Education's report on compliance with requirements applicable to maj or programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Camden County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-l33.
7. Major Programs Federal awards audited as major programs are as follows: 84.041 Impact Aid 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education - Preschool 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Severely Emotionally Disturbed
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Camden County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
IT FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6201-98-01 The Camden County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, 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. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
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