Camden County Board of Education, Kingsland, Georgia, report on audit of the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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CAMDEN COUNTY BOARD OF EDUCATION KINGSLAND, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30,2000
Russell W. Hinton state Auditor

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 AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

K

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

30

CAMDEN COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

34

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

35

5

BY PROGRAM

36

SECTION II
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 ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

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
March 21, 2001

Honorable Roy E. Barnes, Governor Members ofthe 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, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the 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 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.
2000ARL-13

* 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, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education 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, 1999, were improperly recorded in the year ended June 30, 2000. 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, 2000, and the results ofits 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 March 21, 2001, on our consideration of the Camden County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
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 and individual fund statements (Exhibits E through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office of Management and Budget Circular A-B3, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe 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 of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp 2000ARL-13

Ru sell W. Hinton State Auditor

CAMDEN COUNTY BOARD OF EDUCATION

CAMDEN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Investments
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
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Arbitrage Rebate Tax For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,949,570.56 $ 1,031,753.04 $

155,238.55

4,955,480.80

522,755.62

233,248.49

310,623.69

39,018.30 37,472.50

$ 4,472,326.18 $ 1,341 ,492.33 $ 5,421,343.04

$ 1,139,672.97 $ 589.96

573,745.71 373,558.15
38,905.11 $

522,765.36 264,645.49

$ 1,140,262.93 $

986,208.97 $

787,410.85

$

245,142.15

$
$ 3,332,063.25 $ 3,332,063.25 $

39,018.30 37,472.50
278,792.56 355,283.36 $

3,286,821.49 1,101,968.55 4,633,932.19

$ 4,472,326.18 $ 1,341 ,492.33 $ 5,421,343.04

The notes to the general purpose financial statements are an integral part of this statement. -2-

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUND

$

359.83 $

22,716.57

3,558,494.49

911,461.62

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30,1999

$ 5,159,638.55 $ 4,206,884.61

8,513,975.29

16,674,262.96

1,978,089.42

2,374,643.71

$ 4,470,315.94

39,018.30 37,472.50
4,470,315.94

39,546.69 25,868.58
3,857,659.34

11,934,684.06 1,859,263.82

11,934,684.06 1,859,263.82

16,482,340.66 2,499,293.02

$ 4,470,315.94 $

22,716.57 $ 18,264,263.82 $ 33,992,457.88 $ 46,160,499.57

$ 1,713,418.68 $ 1,817,248.84

373,558.15

374,815.31

39,495.07

26,464.74

522,765.36

667,129.75

264,645.49

429,151.19

$

22,716.57

22,716.57

$ 1,859,263.82

1,859,263.82

2,499,293.02

16,405,000.00

16,405,000.00

20,340,000.00

$

22,716.57 $ 18,264,263.82 $ 21,200,863.14 $ 26,154,102.85

$ 4,470,315.94
0.00 $ 4,470,315.94

$

245,142.15

4,470,315.94 $ 3,857,659.34

39,018.30 37,472.50 3,286,821.49

39,546.69 25,868.58 12,543,263.88

4,712,824.36

3,540,058.23

$ 12,791,594.74 $ 20,006,396.72

$ 4,470,315.94 $

22,716.57 $ 18,264,263.82 $ 33,992,457.88 $ 46,160,499.57

-3-

CAMDEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
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
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 34,786,285.72 $ 4,231,854.20 10,058,679.56 1,052,555.42
$ 50,129,374.90 $

3,076,595.87 3,529,872.00
1,376,502.24
7,982,970.11

$ 29,796,221.55 $
3,627,439.40 1,894,649.15 1,222,658.90
513,873.91 3,869,328.80
325,072.55 3,237,624.87 2,678,337.32
368,892.99 795.83
17,566.52 417,495.86
56,279.08
$ 48,026,236.73 $
$ 2,103,138.17 $

3,027,491.91
259,809.90 1,336,874.52
40,575.45 68,467.59
2,953.93
8,203.89 12,119.25
1,888.03 3,288,681.92
4,420.00
130,029.20 19,413.87
8,200,929.46
-217,959.35

$ $ -645,137.48
$ -645,137.48 $

44,191.17 44,191.17

$ 1,458,000.69 $ 1,874,062.56

-173,768.18 517,976.01

-528.39 11,603.92

FUND BALANCE JUNE 30

$ 3,332,063.25 $ ==3...5.=50.=,2=8.3...=36=

The notes to the general purpose financial statements are an integral part of this statement.

-4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 1,193,374.59

$ 39,056,256.18 $ 36,261,471.17

7,761,726.20

7,658,825.53

$ 5,330,566.62

15,389,246.18

14,111 ;557.19

566,222.00

174,440.70

3,169,720.36

3,113,326.75

$ 1,759,596.59 $ 5,505,007.32 $ 65,376,948.92 $ 61,145,180.64

$ 10,928,507.74
510,000.00 $
108,195.00
$ 11,546,702.74 $ $ -9,787,106.15 $

$ 32,823,713.46 $ 30,783,644.00

3,887,249.30 3,231,523.67 1,263,234.35
582,341.50 3,872,282.73
325,072.55 3,245,828.76 2,690,456.57
368,892.99 2,683.86
3,306,248.44 417,495.86
10,989,206.82

3,303,914.59 2,788,026.40 1,213,133.62
423,544.07 3,534,846.83
358,750.81 3,553,224.41 2,839,205.76
239,410.77 4,550.27
3,210,496.59 400,979.78
6,901,633.70

3,935,000.00 893,957.50

4,575,029.20 1,021,566.37

2,307,451.58 1,522,961.41

4,828,957.50 $ 72,602,826.43 $ 63,385,774.59

676,049.82 $ -7,225,877.51 $ -2,240,593.95

$

664,339.53

$

708,530.70 $ 3,006,066.42

$

-63,393.22

-708,530.70

-3,006,066.42

$

664,339.53 $

-63,393.22 $

0.00 $

0.00

$ -9,122,766.62 $
13,756,698.81

612,656.60 $ -7,225,877.51 $ -2,240,593.95

3,857,659.34

20,006,396.72

22,258,457.33

-528.39 11,603.92

-12,798.07 1,331.41

$ 4,633,932.19 $ 4,470,315.94 $ 12,791,594.74 $ 20,006,396.72

-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 FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 34,244,937,00 $ 34,786,285,72

2,612,000.00

4,231,854.20

10,255,000.00

10,058,679.56

255,000.00

1,052,555.42

Total Revenues

$ 47,366,937.00 $ 50,129,374.90

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service

$ 29,497,976.83 $ 29,796,221.55

3,101,149.00 1,600,000.00 1,165,000.00
535,000.00 3,500,000.00
635,000.00 3,503,450.00 2,900,000.00
242,925.00 22,100.00
150,000.00

3,627,439.40 1,894,649.15 1,222,658.90
513,873.91 3,869,328.80
325,072.55 3,237,624.87 2,678,337.32
368,892.99 795.83
17,566.52 417,495.86
56,279.08

Total Expenditures

$ 46,852,600.83 $ 48,026,236.73

Excess of Revenues over (under) Expenditures

$ 514,336.17 $ 2,103,138.17

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ -500,000.00 $ -645,137.48

Total Other Financing Sources (Uses) $ -500,000.00 $ -645,137.48

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

14,336.17 $ 1,458,000,69

FUND BALANCE JULY 1, 1999

1,150,953.47

1,874,062.56

FUND BALANCE JUNE 30, 2000

$ 1,165,289.64 $ 3,332,063.25

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 2,545,054,50 $ 3,076,595.87 2,769,018.00 3,529,872.00
1,070,000.00 1,376,502.24
$ 6,384,072.50 $ 7,982,970.11

$ 2,072,819.75 $ 3,027,491.91

215,027.00 471,878.50
43,149.00 16,906.00 46,218.00

259,809.90 1,336,874.52
40,575.45 68,467,59
2,953.93

30,604.00 14,251.00

8,203.89 12,119.25

14,231.25 2,169,417.69

1,888.03 3,288,681.92

4,420.00 149,443.07

$ 5,094,502.19 $ 8,200,929.46

$ 1,289,570.31 $ -217,959.35

$ $ -U31 ,100.00
$ -1,131,100.00 $

44,191.17 44,191.17

$ 158,470.31 $ -173,768.18

72,843,25

452,560.74

$ 231,313.56 $ 278,792,56

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

CAMDEN COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental 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 governmental 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 of the 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 of a 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

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific 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.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and 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 ofthese 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.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:

-8-

CAMDEN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the 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 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. 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.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
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 ofbudget 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 ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the 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
- 9-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. 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 of Revenues, 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" of this ,report:

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 517,976.01

Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods

-39,546.69 -25,868.58

Fund Balance July 1, 1999 (Budget Basis)

$ 452,560.74

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

-173,768.18

FUND BALANCE JUNE 30, 2000 (Budget Basis)

$ 278,792.56

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 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.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at

- 10-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
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 of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on November 16, 1999 (levy date). Taxes were due on February 12, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. 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 of taxes collected to the Board.

- 11 -

CAMDEN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 1999 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

15.0 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 $5,328,818.52 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $19,274,013.04 has been collected or on December 31,2003, 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 ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund 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 ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements ofexpenditures 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.

Operating transfers are recorded for all interfund transactions other than reimbursements.

- 12-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofoperations in confonnity 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 AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney 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 of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or 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 of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the 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

- 13-

CAMDEN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or 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 AtJune 30, 2000, the bank balances were $7,845,195.37, The amounts ofthe 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, 2000, as follows:

Risk Category

Bank Balance

1

$ 101,874.60

2

5,778,435.94

3

1,964,884.83

Total

$ 7.845.195.37

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the fair value of the Board's total investments was $8,513,975.29 and this entire amount consisted ofU. S. Treasury Bills which was insured or registered, or securities held by the Board or the Board's agent in the Board's name.

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

- 14-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss 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.

The Board has obtained commercial insurance for risk ofloss associated with torts and assets. 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 has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in 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 of that loss can be reasonably estimated.

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

1999 2000

Beginning of Year Liabilitv

Claims and Changes in Estimates

$

0.00 $

671.00 $

$

0.00 $

198.00 $

Claims Paid

End of Year Liability

671.00 $

0.00

198.00 $

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 ofworkers' 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:

- 15 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

Position Covered

Amount

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

ARBITRAGE REBATE TAX The Federal Tax Refonn Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated liability of $245,142.15 at June 30,2000, is based on tax exempt debt subject to the Tax Refonn Act. The estimated liability will be updated annually for any tax-exempt issuances or changes in yields through June 30, 2003, at which time payment ofthe final calculated liability for the five-year period is required to be remitted.

CAPITAL LEASES The Camden County Board of Education 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 facilities. Under the tenns of this agreement, the Board will make semi-annual payments through January 15,2003. The lease contains an annual renewal clause.

The Camden County Board ofEducation 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 ofthe future minimum lease payments as ofthe date oftheir inception.

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

Pumose

Interest Rates

Amount

General Government - Series 1997

4.0% -4.75% $16.405,000.00

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 2000, were as follows:

- 16-

CAMDEN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Balance July I, 1999
Deductions Debt Retired
Balance June 30, 2000

Capital Leases

GSBA

Other

General Obligation
Bonds

Total

$ 2,195,000.00 $ 304,293.02 $20,340,000.00 $22,839,293.02

510,000.00 130,029.20 3,935,000.00 4.575,029.20 $ 1685000.00 $ 174263.82 $1640500000 $1826426382

At June 30, 2000, payments due"by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
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

$ 618,715.00 $ 185,941.85 $ 5,502,045.00 $ 6,306,701.85

617,500.00

5,690,655.00 6,308,155.00

619.500.00

6,707,700.00 7.327.200.00

$ 1,855,715.00 $ 185,941.85 $17900400.00 $19942056.85

170,715.00

11,678.03

$ I 685 000.00 $ 17426382

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $539,763.53 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$401,385.95

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$9,567.58

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$128,810.00

- 17 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

Lottery 01 GI00S-620-003 Camden County High School 9th Grade Center

$ 2,667,094.84 $ 1,396,404.00 671,169.96

$ 3.338.264.80 $ 1.396.404.00

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.

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 ofthe 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 accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 18 -

CAMDEN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: RETIREMENT PLANS
Fiscal Year 2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 3,865,284.12 $ 3,801,794.29 $ 3,266,541.08

- 19-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

467,050.62 $

142,808.27

1,805.08

39,018.30 37.472.50

Total Assets

$

545,346.50 $ ==1=4:=2=,8:=08=.=27==

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

53,730.98 $

37,050.39

136,332.16

105,002.88

755.00

$

190,063.14 $

142,808.27

$

39,018.30

37.472.50

278,792.56 $

0.00

$

355,283.36 $

0.00

Total Liabilities and Fund Equity

$

545,346.50 $ ==1=4=:25,8=08;;,;;.2=7=

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

EXHIBIT"E"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

421,894.15 $ 1,031,753.04 $

892,837.66

231,443.41

233,248.49

539,248.33

39,018.30 37,472.50

39,546.69 25,868.58

$

653,337.56 $ 1,341 ,492.33 $ 1,497,501.26

$

482,964.34 $

573,745.71 $

578,245.20

132,223.11

373,558.15

374,815.31

38,150.11

38,905.11

26,464.74

$

653,337.56 $

986,208.97 $

979,525.25

$

39,018.30 $

39,546.69

37,472.50

25,868.58

$

---'0;.:,;.0:;.;;0'-

278,792.56

452,560.74

$

0.00 $

355,283.36 $ _---=5:...:1...:..7'-=',9..:..;76""'.0;:;..1:.....

$

653,337.56 $ 1,341,492.33 $ 1,497,501.26

- 21 -

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000

REVENUES
State 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
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers 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

LOITERY PROGRAMS

$

225,510,00 $ 1,243,910.44

1,508,133,85

1,376,502.24

$ 3,110,146,09 $ 1,243,910.44

$

901,831.99

180,636,59 11,023.05

23,439,79

$ 3,283,914,27

15.00 4,767,65

130,029.20 19,413.87

$ 3,283,914,27 $ 1,271,157.14

$ -173,768.18 $

-27,246.70

$ -173,768.18 $ 517,976.01
-528,39 11,603.92

27,246.70
0.00 0.00

FUND BALANCE JUNE 30
See notes to the general purpose financial stat!i!ments, - 22-

$

355,283,36 $ ====0=.=00,,=

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$ 1,607,175.43 $ 3,076,595.87 $ 2,577,215.01

2,021,738.15

3,529,872.00

3,239,789.55

1,376,502.24

1,309,788.11

$ 3,628,913.58 $ 7,982,970.11 $ 7,126,792.67

$ 2,125,659.92 $ 3,027,491.91 $ 2,566,993.40

79,173.31 1,325,851.47
40,575.45 45,027.80
2,953.93 8,203.89 12,119.25 1,873.03
4,420.00

259,809.90 1,336,874.52
40,575.45 68,467.59 2,953.93
8,203.89 12,119.25
1,888.03 3,288,681.92
4,420.00

252,199.53 1,126,652.66
40,748.67 56,857.64 4,102.95 7,380.70
649.86 1,687.80 3,187,787.48

130,029.20 19,413.87

174,969.36 10,311.63

$ 3,645,858.05 $ 8,200,929.46 $ 7,430,341.68

$

-16,944.47 $

-217,959.35 $

-303,549.01

16,944.47

44,191.17

170,604.13

$

0.00 $

-173,768.18 $

-132,944.88

0.00

517,976.01

662,387.55

-528.39 11,603.92

-12,798.07 1,331.41

$

0.00 $

355,283.36 $ ====5:.;1.7.!.:::,9.7.6..:=.0==:1...

- 23-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

BOND PROCEEDS

$

680,744.57

421,223.98 $ 4,534,256.82

Total Assets

$ 1,101,968.55 $ 4,534,256.82

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Arbitrage Rebate Tax For Purposes of Bond Issue Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

680,662.02

199,467.69 122,163.47

$ 1,002,293.18

$

245,142.15

3,286,821.49

$ 1,101 ,968.55

0.00

$ 1,101,968.55 $ 3,531,963.64

$ 1,101,968.55 $ ==4=,5=3=:4=,2=56:=.8=:2=

See notes to the general purpose financial statements. - 24-

EXHIBIT"G"

LOTIERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

155,156.00 $

835,900.57 $

858,918.03

4,955,480.80

13,671,904.53

310,623.69

310,623.69

563,639.10

$

465,779.69 $ 6,102,005.06 $ 15,094,461.66

$

680,662.02 $

182,563.88

58,918.03

$

323,297.67

522,765.36

667,129.75

142,482.02

264,645.49

429,151.19

$

465,779.69 $ 1,468,072.87 $ 1,337,762.85

$

245,142.15

3,286,821.49 $ 12,543,263.88

$

0.00

1,101,968.55

1,213,434.93

$

0.00 $ 4,633,932.19 $ 13,756,698.81

$

465,779.69 $ 6,102,005.06 $ 15,094,461.66

25

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
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
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

26,552,51 $

539,669.49

$

26,552,51 $

539,669.49

$

111,421.00 $

245,940.57

72,742.42

10,245,695,53

252,708,22

510,000.00 108,195,00

$

802,358.42 $ 10,744,344.32

$ -775,805.91 $ -10,204,674.83

$

664,339.53 $ 1,193,374.59

$

664,339.53 $ 1,193,374,59

$ -111,466.38 $ -9,011,300.24

1,213,434.93

12,543,263.88

$ 1,101,968.55 $ 3,531,963.64

See notes to the general purpose financial statements. 26 -

EXHIBIT"H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$ 1,193,374.59 $ 1,193,374.59 $

563,639.10

566,222.00

1,125,255.71

$ 1,193,374.59 $ 1,759,596.59 $ 1,688,894.81

$

0.00 $

357,361.57 $

319,835.03

10,318,437.95

6,076,344.40

252,708.22

338,523.51

510,000.00 108,195.00

490,000.00 131,225.00

$

0.00 $ 11 ,546,702.74 $ 7,355,927.94

$ 1,193,374.59 $ -9,787,106.15 $ -5,667,033.13

$ 1,857,714.12 $ 4,319,273.51

$ -1,193,374.59

-1,193,374.59

-5,280,091.44

$ -1,193,374.59 $

664,339.53 $

-960,817.93

$

0.00 $ -9,122,766.62 $ -6,627,851.06

0.00

13,756,698.81

20,384,549.87

$

0.00 $ 4,633,932.19 $ 13,756,698.81

- 27-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

1,874.60

$

1,874.60 $

63,216.21

$ 3,558,494.49

3,558,494.49

3,002,358.43

150.22

911,311.40

911,461.62

792,084.70

$

2,024.82 $ 4,469,805.89 $ 4,471,830.71 $ 3,857,659.34

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undesignated

Total Fund Equity

$

$

1,514.77 $

1,514.77

2,024.82 $
0.00
2,024.82 $

4,468,291.12 $ 4,470,315.94 $ 3,857,659.34

0.00

0.00

0.00

4,468,291.12 $ 4,470,315.94 $ 3,857,659.34

Total Liabilities and Fund Equity

$

2,024.82 $ 4,469,805.89 $ 4,471,830.71 $ 3,857,659.34

See notes to the general purpose finandal statements.

- 28-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30,1999

REVENUES

Taxes Other Funds

$ 1,748.10 $ 5,328,818.52 $ 5,330,566,62 $ 4,507,628.11

101.76

174,338.94

174,440.70

82,004.72

Total Revenues

$ 1,849.86 $ 5,503,157.46 $ 5,505,007,32 $ 4,589,632.83

EXPENDITURES

Debt Service Principal Interest
Total ~xpenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)

$

0.00 $ 3,935,000.00 $ 3,935,000.00 $ 1,410,000,00

893,957.50

893,957.50

1,346,339.79

$

0,00 $ 4,828,957.50 $ 4,828,957.50 $ 2,756,339.79

$ 1,849.86 $ 674,199,96 $ 676,049,82 $ 1,833,293.04

Operating Transfers In Operating Transfers Out

$ -63,393.22

$ 1,898,140.11 $ -63,393.22

Total Other Financing Sources (Uses)

$ -63,393.22

$ -63,393.22 $ 1,898,140.11

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

$ -61,543.36 $

674,199.96 $ 612,656.60 $ 3,731,433.15

FUND BALANCE JULY 1

63,568.18

3,794,091.16

3,857,659.34

126,226.19

FUND BALANCE JUNE 30

$ 2,024.82 $ 4,468,291.12 $ 4,470,315.94 $ 3,857,659.34

See notes to the general purpose financial statements.

- 29-

CAMDEN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2000

EXHIBIT"K"

LIABILITIES Funds Held for Others

$==~O,~OO:;", $ 22,716.57 $

0.00 $ =====2=20!:,7..1.6=0=57==

See notes to the general purpose financial statementso - 30-

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Grant Flow Through Preschool Severely Emotionally Disturbed
Total Special Education Cluster
Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

N/A

$ 395,621.97

(2)

N/A

973,360.04 $

3,144,762.43 (3)

$ 1,368,982.01 $

3,144,762.43

10.550 10.558

N/A

139,151.84

139,151.84

N/A

5,370.45

(2)

$ 1,513,504.30 $

3,283,914.27

84.173 84.027 84.173 84.027

N/A

$ 19,662.94 $

N/A

578,758.31

N/A

83,361.20

N/A

131,733.28

$ 813,515.73 $

19,662.94 578,758.31
83,361.20 131,733.28 (5)
813,515.73

84.041

3,802,176.63

(4)

84.010 84.281 84.298 84.340
84.276
84.048

NlA

792,239.17

792,239.17

N/A

54,969.78

55,456.27 (3)

N/A

43,396.14

43,396.14

N/A

142,761.00

144,965.12 (3)

NlA

110,599.33

110,599.33

N/A

64,257.00

76,893.37 (3)

$ 5,823,914.78 $

2,037,065.13

- 31

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense, U. S. Department of Direct Impact Aid Department of the Navy R.O.T.C. Program
Total U. S. Department of Defense
Federal Emergency Management Agency Pass-Through From the Office of the Governor Disaster Assistance

CFDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.041

$ 392,252.63 30,498.39 $
$ 422,751.02 $

(4) 94,542.30 (3) 94,542.30

83.544

N/A

$

1,556.10

(4)

Total Federal Financial Assistance
N/A = Not Available

$ 7,761,726.20 $ =====5,==41=5=,5=2==1.=7=0

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 commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Funds earned on this program do not require reporting of expenditures. (5) Includes Federal Assistance of $103,610,60 provided to sUbrecipients.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Camden County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

32

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

AGENCY/FUNDING
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 Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program National Teacher Certification Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Teachers'Retirement Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital Outlay
Office of School Readiness Pre-Kindergarten Program
Office ofTreasury and Fiscal Services Public School Employees Retirement
Office of the Governor Georgia Council for the Arts Disaster Relief
CONTRACT Education, Georgia Department of Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 20,457,713.00 3,342,833.00 622,661.00 884,213.00 246,119.00 5,345,235.00

$ 20,457,713.00 3,342,833.00 622,661.00 884,213.00 246,119.00 5,345,235.00

928,139.00 284,760.00
21,144.00 726,855.00 337,233.00
96,770.00 95,623.00 86,527.00 -3,037,027.00 3,386,378.00
$ 31,868.00

225,510.00

928,139.00 284,760.00
21,144.00 726,855.00 337,233.00
96,770.00 95,623.00 86,527.00 -3,037,027.00 3,386,378.00 225,510.00 31,868.00

142,365.00 35,000.00 30,076.61 2,783.34
401,385.95 5,000.00 2,430.00 3,069.00
125,232.00 8,023.49
9,567.58

1,495,751.00

142,365.00 35,000.00 30,076.61 2,783.34
401,385.95 5,000.00 2,430.00 3,069.00
125,232.00 8,023.49
1,495,751.00 9,567.58

30,306.96 215,107.00

$ 1,193,374.59

30,306.96 215,107.00 1,193,374.59

998,496.48

998,496.48

128,810.00

128,810.00

35,000.00 498.75

35,000.00 498.75

111,424.43

111,424.43

$ 34,786,285.72 $ 3,076,595.87 $ 1,193,374.59 $ 39,056,256.18

See notes to the general purpose financial statements.

- 33-

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2000

SCHEDULE "3"

PROJECT
The acquisition, construction and equipping of a new elementary school and a new Alternative School and Psychoeducational Center; renovations of and additions to Camden County High School, Camden Middle School, SI. Mary's Middle School, SI. Mary's Elementary School, Sugarmill Elementary School and Woodbine Elementary School; the acquisition of new technology, equipment and furniture for all schools system-wide; the acquisition, construction and equipping of the science wing and the vocational wing at Camden County High School, which are currently being leased from the Georgia School Boards Association, Inc. and a new middle school; renovations of and additions to SI. Mary's Middle School and Camden Middle School; dassroom additions as needed for all schools system-wide

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 31,000,000.00 $ 32,446,390.00 $ 11,639,426.82 $ 11,812,396.49

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the project. Indudes all cost from project inception to completion.
(3) The voters of Camden County approved the imposition of a 1% sales tax to fund the above project and retire associated debl. Amounts expended for this project may indude sales tax proceeds, state, local property taxes and/or other funds over the life of the project.

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, 2000

SCHEDULE "4"

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

$

25,307,420.00 $ _ _--:..;76:..:;9-'-1,:..:;3..::..0.:..;:.0~0

$

26,569,778.64

1,658,424.18 $ _ _1.;,.,.,4.;.;3;.;.7.:.:,2:.:;9.;.;7':..;:.5~9

$

28,228,202.82

-321,355.06 $ _---=2::..;;7-"',9:..:;0:..;:.6.:.;;,8..;.47,;.,.;.;..;76;;..

$

0.00 $ =========0,=00=

See notes to the general purpose financial statements. - 35 -

CAMDEN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (0) Grades 1 - 3 (0) Sub-Total- K-3 Grades 4 - 5 (0) Grades 6 - 8 (0) Grades 9 -12 (0) High School Laboratories (0) Vocational Education Laboratories (0) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (0) Category II (*) Category III (0) Category IV (0) Category V (0) Sub-Total- Regular Category VI (Gifted) (0) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM CO)
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 2,303,532,00

$ 2,073,178,80 $

5,990,556,00

5,391,500.40

$ 8,294,088.00 90 $ 7,464,679,20 $

2,857,689,00 90

2,571,920,10

4,351,581,00 90

3,916,422.90

2,393,779,00 90

2,154,401,10

1,563,981,00 90

1,407,582,90

996,595,00 90

896,935,50

$ 20,457,713,00

$ 18,411,941,70 $

0,00 0,00
0,00

$ 2,832,395,00

$ 2,549,155,50 $

0,00

$ 2,832,395,00 90 $ 2,549,155.50 $

510,438,00 90

459,394,20

$ 3,342,833,00

$ 3,008,549,70 $

$

622,661,00 90 $

560,394,90 $

$ 24,423,207,00

$ 21,980,886.30 $

$

702,257,00 90 $

632,031.30 $

181,956,00 100

181,956,00

$

884,213,00

$

813,987,30 $

0,00
0,00 0,00 0,00
0,00 0,00

Total Fourteen Weighted and Media Center Programs $ 25,307,420,00

$ 22,794,873,60 $

0,00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs,
See notes to the general purpose financial statements.

$

79,939,00

$

79,939,00 $

0,00

166,180,00

166,180.00

$

246,119,00 100 $

246,119,00 $ ======0,;,;;,0=0

- 36 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 2,073,178.80 $ 2,271,355.81 $

105,337.68 $ 2,376,693.49

5,391,500.40

5,868,811.95

361,848.41

6,230,660.36

$ 7,464,679.20 $ 8,140,167.76 $

467,186.09 $ 8,607,353.85 $

0.00

2,571,920.10

3,005,808.62

242,729.64

3,248,538.26

0.00

3,916,422.90

4,038,255.97

266,148.37

4,304,404.34

0.00

2,154,401.10

3,014,919.90

202,442.41

3,217,362.31

0.00

1,407,582.90

1,330,376.73

77,214.99

1,407,591.72

0.00

896,935.50

1,019,936.96

124,890.46

1,144,827.42

0.00

$ 18,411,941.70 $ 20,549,465.94 $ 1,380,611.96 $ 21,930,077.90

$ 2,549,155.50 $

304,092.77 $ 573,493.18 2,399,445.31 256,065.7J
18,096.91

2,928.85 $ 10,657.11 16,599.90

307,021.62 584,150.29 2,416,045.21 256,065.71
18,096.91

$ 2,549,155.50 $ 3,551,193.88 $

30,185.86 $ 3,581,379.74

0.00

459,394.20

536,237.14

12,566.52

548,803.66

0.00

$ 3,008,549.70 $ 4,087,431.02 $

42,752.38 $ 4,130,183.40

$

560,394.90 $

948,440.21 $

13,933.25 $

962,373.46

0.00

$ 21,980,886.30 $ 25,585,337.17 $ 1,437,297.59 $ 27,022,634.76

$

632,031.30 $

984,441.47

$

984,441.47

0.00

181,956.00

$

221,126.59

221,126.59

0.00

$

813,987.30 $

984.441.47 $

221,126.59 $ 1,205,568.06

$ 22,794,873.60 $ 26,569,778.64 $ 1,658,424.18 $ 28,228,202.82 $

0.00

$

79,939.00

166,180.00

$ ===2=46"",.1.1..:=9;,:.00=

$

211,158.24 $

211,158.24

35,238.86

35,238.86

$

246,397.10 $

246,397.10 $=======0;,;;.0.0..

- 37 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta. Georgia 30334-8400
March 21,2001

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 of Education
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 of Camden County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated March 21,2001. 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 ofthe United States.
Compliance
As part of obtaining reasonable assurance about whether Camden County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance 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 internal control over financial 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 internal control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

over financial reporting and its 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 ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Camden County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6201-00-02.

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 of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily 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 solely for the information and use of management, members of the Camden County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully submitted,

~A4. l.\l.~ ~ell

W.

OeL
Hinton

State Auditor

RWH:gp 2000YB-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
March 21,2001

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 of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-B3
Ladies and Gentlemen:
Compliance
We have audited the compliance of Camden County Board of Education with the types of compliance requirements described in the Us. 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, 2000. Camden County Board ofEducation's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofCamden County Board ofEducation'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 ofcompliance 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-B3, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 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.
2000SA-40

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, 2000.
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 performing 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 of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33.
We noted a certain matter involving the internal control over compliance and its 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 ofthe internal control over compliance that, in our judgment, could adversely affect the Camden County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6201-00-01.
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 of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited 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 over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is not considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Camden County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~del,l WQ. HiQnton_~.~ State Auditor
RWH:gp 2000SA-40

SECTION III 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 QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-620 1-98-0 1 FS-620 1-99-0 1

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6201-99-01

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.

SECTION IV FINDINGS AND QUESTIONED COSTS

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report 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 ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement.
Equipment and Real Property Management
The reportable condition described above is not considered to be a material weakness.
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 major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Camden County Board of Education's audit disclosed an audit finding required to be reported by section .51 O(a) ofOMB Circular A-133. This audit finding is included in section IV of this report.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
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CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
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.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial Noncompliance Finding Control Number: FS-6201-00-01
The Camden County Board of Education failed to transfer local matching funds from the Capital Projects Fund - Bond Proceeds Fund to the Capital Projects Fund - Lottery Exceptional Growth Fund as required for the approved State Capital Outlay Project for the 2000 fiscal year. Both the instructions in Chapter 41 ofthe Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive the funding require that the Board transfer local matching funds by year end and designate those funds by project name and number. A correcting audit adjustment was necessary to transfer $155,156.00 from the Bond Proceeds Fund to the Lottery Project Number 01G/00S-620-003 as required.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6201-00-02
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.
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CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Inventory Records Reportable Condition Nonmaterial Noncompliance U. S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-6201-00-01 Property management records maintained by the Board for the Child Nutrition Cluster (CFDA numbers 10.553 and 10.555) were incomplete and failed to meet property management standards set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA), or as outlined in 7 CFR3015.169. The equipment records as presented for audit failed to include the condition of equipment and ultimate disposition including the date and manner of disposal. Additionally, the annual physical inventory count was not reconciled to the property records maintained at the Central Office to ensure the accuracy of equipment records. These conditions occurred because management failed to maintain complete property management records and to ensure that physical inventory counts were properly performed and reconciled to property management records. An inventory system should be implemented that provides for complete inventory records and identification ofall equipment as outlined in Chapter 41 ofthe FMGLUA. An annual physical count should be performed and reconciled to the property management records to ensure the accuracy of inventory records.
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