STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS bA Af6DO A~I E~lo el,7 ,g,OtJD .. J2601 , ,', l. CAMDENCOUNTYBOAR~ OF EDUCATION KINGSLAND, '"GEORGIA REPORTONAUO/T , OF THE FINANCIAL STATEMENTS FOR. THE FISCAL YEAR. ENDED JUNE 30, 2001 ' RusseliW. Hinton State Auditor. CAMDEN 'COUNTY BOARD OF EDUCATION' - TABLE OF CONTENTS - SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION SCHEDULES 1 SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS 31 2 SCHEDULE OF STATE REVENUE 33 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 35 ALLOTMENTS AND EXPENDITIJRES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 36 5 BY SITE 37 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 ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 SECTIONm 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 RUSSELI. W. HINTON STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Sireet, S.w., Suite 214 Atlanta, Georgia 30334-8400 May 14,2002 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 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, 2001, 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial 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 fin.an.cial statement presentation. We believe that our audit provides a reason.able basis for our OpInIOn. As described in the notes to the general-purpose financial statements, the Board of Education'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: 200lARL-13 * The general-purpose financial statements of the Board of Education did not contain 'a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to confonn to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. * The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, 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, 2000, were improperly recorded in the year ended June 30, 2001. To confonn 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 fmancial statements of these variances or omissions have not been detennined, 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, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government :Auditing Standards, we have also issued our report dated May 14, 2002, 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 perfonned 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 perfonned for the purpose of fonning 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 K) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the 2001ARL-13 general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe 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. A copy ofthis report has been filed as a permanent 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, .b~~k.6JlL W.~~ ell W. Hinton State Auditor RWH:as 2001ARL-13 CAMDEN COUNTY BOARD OF EDUCATION CAMDEN COUNTY BOARD OF EDUCATION COMBINED BAlANCE SHEET ALL FUND TYPES ANp ACCOUNT GROUP JUNE 30, 2001 ~ 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 GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 7,835,752,59 $ 1,041,404,04 $ 1,335,750,07 2,588,014,22 327,443,22 863,643,23 976,684,64 25,292,37 35,413,63 Total Assets $ 8,163,195,81 $ 1.965,753,27 $ 4,900,448,93 LIABILlTIES ANP FUNQ EaUITY LIABILlTIES Cash Overdraft Accciunts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable Total Liabilities . FUND EaUITY Fund Balances Reserved For Arbitrage Rebate Tax For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital OuUay Projects Unreserved Undesignated Total Fund Equity $ 229,702,63 $ 913,594,33 413,878,54 97,183,20 $ 2,000.00 94,185,30 17,532,60 $ 229,702.63 $ 1.426,656.07 $ 111.717.90 $ 286,630,57' $ $ 7,933,493.18 $ 7,933,493.18 $ 25,292.37 35,413.63 478,391,20 539,097,20 $ 3,491,956.86 76,102.82 934,040.78 4.788,731.03 Total Liabilities and Fund Equity $ 8,163,195.81 $ 1,965,753.27 $ The notes to the general-purpose financial statements are an Integral part of this statement 4,900A48.93 2 EXHIBIT "A" $ 65,166.16 $ 65,166.16 1,143,296.96 $ 1,7.13,418.68 413,878.54 373,558.15 97,183.20 39,495.07 94,185.30 522,765.36 17,532.60 264,645.49 $ 29,210.61 29,210.61 22,716.57 2,000.00 $ 1,150,000.00 1,150,000.00 1,859,263.82 11 ,610,000.00 11 ,610,000.00 16,405,000.00 $ 65,168.16 $ 29,210.61 $ 12,760,000.00 $ 14,622,453.37 $ 21,200,883.14 $ 964,674.37 0.00 $ 0.00 $ 964,674.37 $ 0.00 $ 288,630.57 $ 245,142.15 964,674.37 4,470,315.94 25,292.37 35,413.63 3,491,956.88 76,102.82 39,018.30 37,472.50 3,286,821.49 9,345,925.16 4,712,824.36 $ 14,225,995.78 $ 12,791,594.74 $ 1,029,840.53 $ 29,210.61 $ 12,780,000.00 $ 28,848:449.15 $ 33,992,457.88 3 CAMDEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Cunent 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 Residual Equity Transfer GENERAL FUND SPECIAL REVENUE FUND $ 39,560,513,48 $ 3,598: 171.64 10,398,161.40 1,064,327.43 $ 54,621,173.95 $ 3,540,220,52 3,727,671.99 1,267,215.77 8,535,108.28 $ 32,793,659.12 $ 2,731,256.28 1,283,738.11 1,255,993.76 437,169.70 4,066,799.11 494,929.07 3,161,009.68 2,542,377.95 440,681.10 3,324,01 15,318,46 435,545.79 17,957.80 $ 49,679,759.94 $ $ 4,941,414.01 $ 2,165,682.38 386,586.13 321,247.67 44,528.88 49,738.04 128,765.66 11,516,76 6,327.58 33,848.38 2,056,647.38 2,944,839,60 174,263.82 11,517.36 8,335,509,64 199,598.64 $ -342,646,06 $ -342,646.06 $ 4,598,767.95 $ 3,332,063.25 199,598.64 355,283.36 2,661.98 -13,725.93 -2,058.87 FUND BALANCE JUNE 30 $ 7,933,493.1 B $ 539,097,20 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, 2001 JUNE 30, 2000 $ 946,139.91 $ 44,046,873.91 $ 39,056,256.18 7,325,843.63 7,761,726.20 3,802,441.88 $ 1,786,322.54 15,986,925.82 15,389,246.18 292,493.30 212,742.87 2,836,779.37 3,169,720.36 $ 5,041,075.09 $ 1,999,065.41 $ 70,196,422.73 $ 65,376,948.92 $ 34,959,341.50 $ 32,823,713.46 $ 4,610,207.31 3,117,842.41 1,604,985.78 1,300,522.64 486,907.74 4,195,564.77 506,445.83 3,167,337.26 2,576,226.33 440,681.10 2,059,971.39 2,960,158.06 435,545.79 4,628,165.11 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 10,989,206.82 535,000.00 $ 4,795,000.00 83,715.00 707,045.00 5,504,263.82 802,277.36 4,575,029.20 1,021 ,566.37 $ 5,228,922.31 $ 5,502,045.00 $ 68,746,236.89 $ 72,602,826.43 $ -187,847.22 $ -3,502,979.59 $ 1,450,185.84 $ -7,225,877.51 $ 342,646.06 $ 342,646.06 $ 342,646.06 $ 708,530.70 -342,646.06 -708,530.70 $ 0.00 $ 0.00 $ 154,798.84 $ -3,502,979.59 $ 1,450,185.84 $ -7,225,877.51 4,633,932.19 4,470,315.94 12,791,594.74 20,006,396.72 -2,661.98 . -13,725.93 -2,058.87 0.00 -528.39 11,603.92 $ 4,788,731.03 $ 964,674.37 $ 14,225,995.78 $ 12,791,594.74 -5- CAMDEN COUNTY BOARD OF EDUCAnON EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Camden County Board of Education (School District) 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 School District is organized as aseparate 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 School District is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The School District 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 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 ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. 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 School District, 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 School District's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the School District . 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. - 8- CAMDEN COUNTY BOARD OF EDUCATION EXHffiIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 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 FUNDS - the funds 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 reporti~g treatment applied to a fund is determined by its measurement focus. All governmental funds ate 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 spe~dable 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 ofaccounting under which: 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 - 9- I I I CAMDEN COUNTY BOARD OF EDUCAnON EXHIDIT "D" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 \ I I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Expenditures are generally recognized whenthe 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 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had. been earned, but two ofthe twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. 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 of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates .of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe 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. - 10- CAMDEN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The budget process begins when the School District'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 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 fmal budget is then submitted, in accordance with provisions of the Quality Basic Education Act,OCGA Section20-2-167(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 y~ar-end. CASH.AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or lessfrom the date of acquisition in authorized financial . institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest.,eaming 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 purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn 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 ofGeorgia, Office of Treasury and Fiscal Services, - 11 - \ I CAMDEN COUNTY BOARD OF EDUCATION EXHffiIT "D" \ NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 'I JUNE 30, 2001 I I I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonnation 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 2000 tax year (calendar year) on December 7, 2000 (levy date), Taxes were due on February 16,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Camden County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $10,111,680,11 and for school bonds amounted to $685.80. . The tax millage rate levied for the 2000 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 SALES TAXES 14.95 mills 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 $5,588,132,97 and was recorded in the Capital Projects and Debt Service Funds. The State will tenninate collection of this tax once an additional $13,685,880.07 has been collected or on December 31, 2002, 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 - 12- CAMDEN COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ~.:~COUNTING POLICIES 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 School District issues general obligation bonds to provide funds for the acquisition and . construction ofmajor 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 aniount of these bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The School District 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. Residual equitY transfers are recorded for nonrecurring or nonroutine permanent transfers of equity. Operating transfers are recorded for all interfund transactions other than residual equity transfers and 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 fmancial analysis. Data in these columns do not present financial position or results ofoperations 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 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 sur~tybond, by guarantee ofinsurance, or by co~lateral. 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. - 13 - I. CAMDEN COUNTY BOARD OF EDUCAnON EXHIDIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS AND INVESTMENTS Ifa 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 indebtedIless 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 ofdevelopment authorities created by the laws of the .State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the U~ted 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 At June 30, 2001, the bank balances were $14,044,159.40. 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 School District or by the School District's agent in the School District's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. - 14- -------------- CAMDEN COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS AND INVESTMENTS 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 School District's name.) The School District's deposits are classified by risk category at June 30, 2001, as follows: Risk Category Bank Balance 1 $ 100,000.00 2 12,145,009.74 3 1.799,149.66 Total $14,044,159.40 CATEGORIZATION OF INVESTMENTS At June 30, 2001, the fair value ofthe School District's total investments was $3,617,854.75 and this entire amount consisted ofU. S. Treasury Bills which was insured or registered, or securities held by the School District or the School District's agent in the School District's name. Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (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 School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years. The School District is self-insured with regard to unemployment compensation claims. The School District 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. - 15 - CAMDEN COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 2000 2001 Beginning of Year Liability Claims and Changes in Estimates Claims Paid End ofYear Liability $ 0.00 $ 198.00 $ 198.00 $ 0.00 $ 0.00 $ 31.795.28 $ 21.952.28 $ 9,843.00 The School District 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 School District 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 School District has purchased surety bonds to provide additional insurance cov~rage as ,follows: 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 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 ofvarious school facilities. Under the terms ofthis agreement, the School District will make semiannual payments through January 15,2003. The lease contains an annual renewal clause. The _Camden County Board of Education has 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. - l6- CAMDEN COUNTY BOARD OF EDUCATION EXHmIT "0" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS nINE 30, 2001 Note 5: GENERAL LONG-TERM DEBT GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1997 4.00% - 4.75% $11.610,000.00 The changes in General Long-Tenn Debt during the fiscal yearended June 30, 2001, were as follows: Balance July 1, 2000 Deductions Debt Retired Balance June 30, 2001 Capital Leases GSBA Other General Obligation Bonds Total $ 1,685,000.00 .$ 174,263.82 $16,405,000.00 $18,264,263.82 535,000.00 174,263.82 4,795,000.00 5.504,263.82 $ 1 150 000.00 $ 000 $)1 6JO 000 00 $1276000000 At June 30, 2001, payments due by fiscal year,which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 Capital Leases . General Obligation Bonds Total Debt 2002 2003 $ 617,500.00. $ 5,690,655.00 $ 6,308,155.00 619.500.00 6,707,700.00 7,327,200.00 Total Principal and Interest $ 1,237,000.00 $12.398.355,00 $13.635.355.00 Deduct: Imputed Interest 87,000.00 Net Present Value of Future Minimum Lease Payments $ 1.150,000,00 Note 6: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $564,622.35 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. - 17 - CAMDEN COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 6: ON-BEHALF PAYMENTS Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon,.Certified Personnel In the amount of$422,461.90 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$12.920.45 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 $129.240.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30. 2001: Project Unearned Executed Contracts Bus Maintenance Facility $ 1.405,655.10 The amount described in this note is not reflected in the general-purpose financial statements. Note 8: CONTINGENT LIABILITIES ARBITRAGE REBATE TAX The Federal Tax Reform Act of 1986 requires issuers oftax-exempt debt to make payments to the United States Treasury ofInvestment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated contingent liability of$286.630.57 at June 30.2001. is based on tax exempt debt subject to the Tax Reform Act. This amount will be updated annually for any tax-exempt issuances or changes in yields through June 30, 2003. at which time payment of the final calculated liability for the five-year period is required to be remitted. 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 School District believes that such disallowances. if any. will be immaterial to its overall financial position. - 18- CAMDEN COUNTY BOARD OF EDUCAnON EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System"ofGeorgia (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 School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District mak~s monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees 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: Fiscal Year Percentage Contributed Required Contribution 2001 2000 1999 100% 100% 100% $ 3,882,049.41 $ 3,865,284.12 $ 3,801,794.29 - 19- CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 624.058.43 $ 105.984.81 25,292.37 35.413.63 Total Assets $ .684.764.43 $ ==1..0.=:5=,9=84,;,.;8..1..... LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities FUND EQUITY . Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 18.174.35 $ 127.492.88 16.017.19 74.241,26 13,726.36 2.000.00 $ 145,667.23 $ 105,984,81 $ 25.292.37 35.413.63 478,391.20 $ 0.00 $ 539,097,20 $ 0.00 $ 684.764.43 $ ==1..0.=:5=,9=84,;,.;.8.1..... See notes to the general-purpose financial statements. - 20- EXHIBIT"E" FEDERAL PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 311,360.80 $ 1,041,404.04 $ 1,031,753.04 863,643.23 863,643.23 233,248.49 25,292.37 35,413.63 39,018.30 37,472.50 $ 1,175,004.03 $ 1,965,753.27 $ 1,341,492.33 $ 879,402.79 $ 913,594.33 $ 212,144.40 413,878.54 83,456.84 97,183.20 2,000.00 $ 1,175,004.03 $ 1,426,656.07 $ 573,745.71 373,558.15 38,905.11 986,208.97 $ 25,292.37 $ 39,018.30 35,413.63 37,472.50 $ ---:O:,;;.O:.::O~ 478,391.20 278,792.56 $ 0.00 $ 539,097.20 $ _---'3:;,;:5;.;:;,5.L::,2:.=.;83~.3=.;6:;... $ 1,175,004.03 $ 1,965,753.27 $ 1,341,492.33 - 21 - CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 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 Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Out/ay 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 FUND BALANCE JUNE 30 See notes to the general-purpose financial statements. -22- SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 225,600,00 $ 1,649,956.87 1,267,215.77 $ 3,142,772,64 $ 819,992.~7 819,992.47 $ 514,721.48 47,223.44 46,293.70 3,641.27 9,149.04 11,516,76 $ 2,943,174.00 1,665,60 $ 2,943,174,00 $ $ 199,598.64 $ 174,263.82 11,517.36 819,992.47 0,00 $ 199,598.64 $ 355,283.36 -13,725,93 -2,058,87 $ 539,097,20 $ 0.00 0,00 0,.00. . EXHIBIT"F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 2,494,628.05 $ 3,540,220.52 $ 3,076,595.87 2,077,715.12 3,727,671.99 3,529,872.00 1,267,215.77 1,376,502.24 $ 4,572,343.17 $ 8,535,108.28 $ 7,982,970.11 $ 1,650,960.90 $ 2,165,682.38 $ 3,027,491.91 339,362.69 274,953.97 44,528.88 46,096.77 119,616.62 6,327.58 33,848.38 2,056,647.38 386,586.13 321,247.67 44,528.88 49,738.04 128,765.66 11,516.76 6,327.58 33,848.38 2,056,647.38 2,944,839.60 259,809.90 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 4,420.00 174,263.82 11,517.36 130,029.20 19,413.87 $ 4,572,343.17 $ 8,335,509.64 $ 8,200,929.46 $ 0.00 $ 199,598.64 $ -217,959.35 44,191.17 $ 0.00 $ 199,598.64 $ -173,768.18 0.00 355,283.36 517,976.01 -13,725.93 -2,058.87 -528.39 11,603.92 $ 0.00 $ 539,097.20 $_-o;;3.5.5.;;e,;,2;;;;;8.3..3..6.. - 23- CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Arbitrage Rebate Tax For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity REGULAR BOND PROCEEDS $ 393,821.31 $ 295,920.81 641,937.37 709.76 $ 1,035,758.68 $ =====2=9:=6:,6:=3=0.:=.57= $ 94,185.30 7,532.60 $ $ 101,717.90 $ 10,000.00 10,000.00 $ 286,630.57 $ 934,040.78 0.00 $ 934,040.78 $ 286,630.57 $ 1,035,758.68 $ =====2=9:=6,6:=.30=.=57= See notes to the general-purpose financial statements. - 24- EXHIBIT"G" SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 569,905.13 $ 1,945,367.09 976,684.64 LOTTERY PROJECT TOTALS JUNE 3D, 2001 --d1!~!E 3D, 2000 76,102.82 $ 1,335,750.07 $ 835,900.57 2,588,014.22 4,955,480.80 976.684.64 310,623.69 $ 3,491,956.86 $ 76,102.82 $ 4,900,448.93 $ 6,102,005.06 $ 680,662.02 $ 94,185.30 522,765.36 17,532.60 264,645.49 $ 111,717.90 $ 1,468,072.87 $ 3,491,956.86 $ 0.00 $ 3,491,956.86 $ $ 76,102.82 0.00 76,102.82 $ 286,630.57 $ 3,491,956.86 76,102.82 934,040.78 4,788,731.03 $ 245,142.15 3,286,821.49 1,101,968.55 4,633,932.19 $ 3,491,956.86 $ 76,102.82 $ 4,900,448.93 $ 6,102,005.06 - 25- CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 3D, 2001 FUND BALANCE JUNE 30 $ 934,040.78 $====2=8=6,6=30=,=57= See notes to the general-purpose financial statements, - 26- EXHIBIT"H" SPECIAL PURPOSE LOCAL OPTION SALES TAX LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ $ 3,802,441.88 30,851.55 $ 3,833,293.43 $ 946,139.91 $ 946,139.91 $ 946,139.91 $ 3,802,441.88 292,493.30 5,041,075.09 $ 1,193,374.59 566,222.00 1,759,596.59 $ 0.00 $ $ 0.00 $ $ 3,833,293.43 $ 0.00 $ 0.00 $ 946,139.91 $ 41,024.50 $ 4,187,840.62 381,342.19 357,361.57 10,318,437.95 252,708.22 535,000.00 83.715.00 510,000.00 108.195.00 5.228.922.31 $ 11.546.702.74 -187,847.22 $ -9,787,106.15 $ 1,554,019.72 $ 1,857,714.12 $ -341 .336.57 $ -870,037.09 -1 ,211 ,373.66 1.193,374.59 $ -341,336.57 $ -870,037.09 $ 342,646.06 $ 664.339.53 $ 3,491,956.86 $ 0.00 76.102.82 $ 0.00 154,798.84 $ 9,122,766.62 4,633,932.19 13.756,698.81 $ 3,491,956.86 $ 76,102.82 $ 4,788,731.03 $ 4,633,932.19 - 27- CAMDEN COUNIY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 EXHIBIT"'" ASSETS Cash and Cash Equivalents Investments Accounts Receivable PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 0.00 $ 1,874.60 $ 1,029,840.53 $ 1,029,840,53 3,558,494,49 911 ,461.62 Total Assets $ 0,00 $ 1,029,840,53 $ 1,029,840,53 $ 4,471,830,71 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft FUNDEQUIIY Fund Balances Reserved For Debt Service Unreserved Undesignated $ Total Fund Equity . $ Total Liabilities and Fund Equity $ $ 65,166.16 $ 65,166.16 $ 1,514.77 $ 0,00 0,00 $ 964,674,37 $ 0,00 964,674.37 $ 964,674.37 $ 4,470,315.94 0.00 0.00 964,674,37 $ 4,470,315.94 0,00 $ 1,029,840,53 $ 1,029,840.53 $ 4,471,830.71 See notes to the general-purpose financial statements. - 28 CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND . YEAR ENDED JUNE 30, 2001 EXHIBIT oJ" PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 REVENUES Taxes Other Funds $ 631,45 $ 1,785,691 ,09 $ 1,786,322,54 $ 5,330,566,62 5.71 212,737,16 212,742,87 174,440.70 Total Revenues $ 637,16 $ 1,998,428,25 $ 1,999,065.41 $ 5,505,007,32 EXPENDITURES Debt Service Principal Interest $ 0,00 $ 4,795,000,00 $ 4,795,000,00 $ 3,935,000,00 707,045,00 707,045.00 893,957,50 Total Expenditures $ 0.00 $ 5,502,045,00 $ 5,502,045,00 $ 4,828,957,50 Excess of Revenues over (under) Expenditures $ 637.16 $ -3,503,616,75 $ -3,502,979,59 $ 676,049,82 OTHER FINANCING USES Operating Transfers Out -63,393,22 Excess of Revenues over (under) Expenditures and Other Financing Uses $ 637.16 $ -3,503,616.75 $ -3,502,979,59 $ 612,656,60 FUND BALANCE JULY 1 Residual Equity Transfer 2,024.82 -2,661,98 4,468,291.12 4,470,315.94 -2,661.98 3,857,659,34 FUND BALANCE JUNE 30 $ 0.00 $ 964,674,37 $ 964,674,37 $ 4,470,315,94 See notes to the general-purpose financial statements, -29- CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND tyPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001 EXHIBIT"K" EMPLOYEE APPRECIATION ASSETS Cash and Cash Equivalents LIABILITIES Funds Held for Others SUN LIFE OF CANADA ASSETS Cash and Cash EqUivalents LIABILITIES Funds Held for Others TOTALS - AGENCY FUNDS ASSETS Cash and Cash EqUivalents . LIABILITIES Funds Held for Others BALANCE JULY 1, 2000 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2001 . $ 0.00 $ 7,526.83 $ 1.407.24 $ 6,119.59 $ _ _.....0.0.0... $ 7,526.83 $ 1,407.24 $ 6.,1.1.9.5.9... $ 22,716.57 $ 374.45 $ 0.00 $ 2.3.,0.9..1.,.0.2.. .$ 22,716.57 $ 374.45 $ 0.00 $ 20=3,.,0..9...1....,02"= $ 22?16.57 $ 7,901,28 $ 1.407.24 $~-=2=9=,2_1_0.6...1= $ 22,716.57 $ 7,901.28 $ 1.407.24 $ .....__2=9=,2..1..0.,.;;,,61... See notes to the general-purpose financial statements. -30 - CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS . YEAR ENDED JUNE 30. 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 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 10.553 10.555 Total Child Nutrition Cluster NlA $ 402.285.62 (2) NlA 1,092,886.89 $ 2,788,389.64 (3) $ 1,495,172.51 $ 2,788.389.64 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 10.550 NlA Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 10.558 NlA 154.784.36 5,943.62 154.784.36 5,943.62 Total U. S. Department of Agriculture $ 1,655,900.49 $ 2.949,117.62 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 Severely Emotionally Disturbed Preschool 84.027 84.027 84.027 84.173 Total Special Education Cluster NlA $ 16,159.07 $ NlA 688,107.84 NlA 148.735.94 NlA 83,537.09 $ 936,539.94 $ 16,159.07 688.107.84 148.735.94 (5) 83,537.09 936.539.94 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 84.041 84.010 84.281 84.298 84.340 84.276 84.048 3,556.125.91 (4) NlA 696,260.17 . 696.260.17 NlA 18,056.40 18,056.40 NlA 87,759.24 NlA 150,948.45 87.759.24 150.948.45 NlA 119.548.92 119,548.92 NlA 68,602.00 68.602.00 $ 5,633,841.03 $ 2,077,715.12 - 31- \ i CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES!OF FEDERAL AWARDS SCHEDULE "1 II I YEARENDED JUNE 30, 2001 I I I I FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Defense, U. S. Department of Direct Department of the Navy R.O.T.C. Program $ 36,102.11 (4) Total Federal Financial Assistance N1A = Not Available $ 7,325.843.63 $ 5,026,832.74 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 School Breakfast Program were not maintained separately and are included in the 2001 National School LunCh Program. (3) Expenditures for this programinclude State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Funds eamed on this program do not require reporting of expenditures. (5) Includes Federal Assistance of $128,660.18 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 ofthe general-purpose financial statements. See notes to the general-purpose financial statements. - 32- CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENpED JUNE 30 2001 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) $ 15,475.00 $ 15,475.00 Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Special Education Itinerant Special Education Supplemental Speech Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacemenl Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services ' Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teachers National Teacher Certification Preschool Handicapped Program Remedial Summer School Severely Emotionally Disturbed Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Computers in the Classroom Exceptional Growth-Capital Outlay 1,999,766.00 371,140.00 . 6,191,905.00 529,958.00 . 2,840,828.00 5,263,094.00 3,908,863.00 1,381,041.00 214,041.00 516,597.00 1,864,153.00 150,610.00 53,734.00 515,519.00 300,703.00 381,019.00 36,824.00 876,100.00 28,238.00 19,908.00 235,650.00 5,259,833.00 999,173.00 296,798.00 196,367.00 38,853.00 54,376.00 3,915,871.00 $ 243,142.00 225,600.00 35,000.00 12,883.13 2,250.00 422,461.90 5,000.00 978.00 6,047.00 135,872.00 8,965.00 14,819.00 12,920.45 2,383,017.52 197,870.00 $ 946,139.91 1,999,766.00 371,140.00 6,191,905.00 529,958.00 2,840,828.00 5,263,094.00 3,908,863.00 1,381,041.00 214,041.00 516,597.00 1,864,153.00 150,610.00 53,734.00 515,519.00 300,703.00 381,019.00 36,824.00 876,100.00 28,238.00 19,908.00 235,650.00 5,259,833.00 999,173.00 296,798.00 196,367.00 38,853.00 54,376.00 3,915,871.00 225,600.00 243,142.00 35,000.00 12,883.13 2,250.00 422,461.90 5,000.00 978.00 6,047.00 135,872.00 8,965.00 2,383,017.52 14,819.00 12,920.45 197,870.00 946,139.91 Office of School Readiness Pre-Kindergarten Program 622,122.47 622,122.47 Office of Treasury and Fiscal Services Public School Employees Retirement 129,240.00 - 33- 129,240.00 CAMPEN COUNTY BOARP Of.EDUCATION SCHEpULE.OF STATE:REVENUE YEAR ENDEpJUNE30:2001 SCHEDULE "2" AGENCYIfUNplNG CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 74,498.00 - - - - - $ 111,610.53 $ 74,498.00 111,610.53 $ 39,560,513.48 $ 3,540,220.52 $ 946,139.91 $ 44,046,873.91 (1) The purpose of the funds ara to purchase equipment for the Fine Arts Program at Camden County High School and to provide funds for the equipment and installation of a satellite system for cable access to all classrooms at Mamie Lou Gross Elementary School. See notes to the general-purpose financial statements. 34 CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2001 SCHEDULE "3" PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS 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, St. Mary's Middle School, St. Mary's Elementary School, Sugannill 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 St. Mary's Middle School and Camden Middle School; classroom additions as needed for all schools system-wide $ 31,000,000.00 $ 32,446,390.00 $ 5,834,249.41 $ 24,691,243.31 Ongoing (1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. . (2) The School District's current estimate of total cost for the project. Includes 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 debt. Amounts expended for this ;>roject may Include 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. - 35 CAMDEN COUNTY BOARD OF EDUCATION GENERAL FUND aUALlTY BASIC EDUCATION PROGRAM laBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001 SCHEDULE "4" TOTAL aBE FORMULA FUNDS $ 30,383,648,00 $ 29,469,058,06 $ 1,591,924.98 $ 31,060,983.04 (1) Comprised of State Funds pius Local Five Mill Share. See notes to the general-purpose financial statements. - 36- CAMDEN COUNTY BOARD OF EDUCATION GENERAL FUND aUALITY BASIC EDUCATION PROGRAM (aBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D, 2001 SCHEDULE "5" Mamie Lou Gross Elementary School Camden Middle School Crooked River Elementary School Matilda Harris Elementary School Woodbine Elementary School Kingsland Elementary School David L. Rainer Elementary School Sugarmill Elementary Camden County High School St. Mary's Middle School Mary Lee Clark Elementary School St. Mary's Elementary School Coastal Academy Psychoeducational Program Camden County Alternative School Central Office (Alternative Education Program) TOTAL (1) Comprised of State Funds plus Local Five Mill Share. ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE aBE PROGRAM COSTS $ 1,218,370.00 $ 1,418,303.45 3,984,021.00 3,806,132.95 1,866,783.00 1,905,117.02 1,904,352.00 1,956,279.37 1,472,214.00 1,547,069.93 1,594,244.00 1,694,839.91 1,767,192.00 1,671,721.41 1,568,175.00 1,548,796.69 7,052,594.00 7,457,076.07 2,911,204.00 2,955,668.39 1,827,102.00 1,648,049.45 1,578,803.00 1,665,472.19 16,624.81 258,973.61 418,240.00 $ 29,163.294.00 $ 29,550,125.25 See notes to the general-purpose financial statements. - 37- I I. I SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS RUSSELL W. HINTON STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wllshington Sireet. S.w., Suite 214 Atlllnta, Georgia 30334-R400 May 14, 2002 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe 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, 2001, and have issued our report thereon dated May 14, 2002. 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 auditing standards generally accepted in the United States of America 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 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 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 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 fmancial statements and not to provide assurance on the internal 2001YB-41 control over financial reporting. However, we noted a certain matter involving the internal control 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 fmancial statements. The reportable condition is describe~ in the accompanying Schedule ofFindings and Questioned Costs as item FS-620 1-01-01. 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 fmancial 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 fmancial 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, we consider item FS-6201-01-01 to be a material weakness. This report is intended solely for'the information and use of the 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, ~o~~ State Auditor RWH:as 2001YB-41 RUSSELL W. HINTON STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400 May 14,2002 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 REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 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-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Camden County Board ofEducation's major Federal programsare identified in the Summary of Auditor's Results Section of 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 of Camden County Board of Education's management. Our responsibility is to expressan opinion on Camden County Bpard of Education's compliance based on our audit. We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and . OMB Circular A-133 require that we plan and perfonn the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance 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 perfonning 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 detennination on Camden County Board ofEducation's.compliance with those requir~ments. 2001SA-1O In our opinion, the Camden County Board ofEducation 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, 2001. 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 ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB CircularA-133. Our consideration ofthe 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 major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming 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 solely for the information and use of the 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, uJ.~ Rus ell W. Hinton Sta e Auditor RWH:as 2001SA-1O 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 QUESTIQNED COSTS YEAR ENDED JUNE 30, 2001 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED CQSTS FINDING CONTROL NUMBER AND STATUS FS-6201-99-01 FS-6201-00-01 FS-6201-00-02 Further Action Not Warranted Previously Reported Corrective Action hnplemented Unresolved - See Corrective Action/Response CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-620l-00-02 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. . PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FA-620l-00-0l Previously Reported Corrective Action hnplemented SECTION IV FINDINGS AND QUESTIONED COSTS CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 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 Qver Major Programs The audit report for the Camden County Board ofEducation 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 major 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 .51O(a) ofQMB Circular A-133. 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 84.027 Individuals with Disabilities Education Act - Part B - Special Education. Capacity Building Improvement Grant 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.027 Individuals with Disabilities Education Act - Part B - Special Education Severely Emotionally Disturbed 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool - 1- CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 I SUMMARY OF AUDITOR'S RESULTS 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 of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. . IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6201-01-01 The Camden County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District 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 School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained for all additions and deletions to the General Fixed' Assets Account Group. Management's Response: Due to current staffing limitations and budgetary considerations prohibiting the hiring of administrative staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. - 2-