Camden County Board of Education, Kingsland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
I
CAMDEN COUNTY BOARD OF EDUCATION KINGSLAND, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2002
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

ADDITIONAL FINANCIAL INFORMATION

COMBINING 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

I

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

28

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

29

2 SCHEDULE OF STATE REVENUE

31

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

CAMDEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

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 0MB CIRCULARA-133

SECTION III 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 11, 2004

Honorable Sonny Perdue, 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, 2002, 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.
Except as discussed in the following paragraph, 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. 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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2002, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2002ARL-13

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:
* 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 conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, 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, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Camden County Board ofEducation as ofJune 30, 2002, and the results of its 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 March 11, 2004, 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.
2002ARL-13

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Camden County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through I) 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 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 effect ofadjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth 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,

RWH:as 2002ARL-13

State Auditor

CAMDEN COUNTY BOARD OF EDUCATION

CAMDEN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2002

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 720,342.70 $ 3,262,852.10

$ 15,022,667.36

2,015,920.09

724,557.45

542,174.42

1,024,261.18

57,871.32 26,559.69

Total Assets

$ 15,747,224.81 $ 1,346,948.13 $ 6,303,033.37

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Arbitrage Rebate Tax For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

137,840.12

36,295.55 $

71,669.94

40,600.00

455,786.44

$

60.01

73,914.48 5,000.00

$

214,735.67 $ 527,516.39 $

78,914.48

$

155,937.85

$

263,890.21

$
15,376,551.29 $ 15,532,489.14 $

57,871.32 26,559.69
735,000.73 819,431.74 $

1,279,105.57 3,040,158.76
54,964.09
1,586,000.26
6,224, 118.89

Total Liabilities and Fund Equity

$ 15,747,224.81 $ 1,346,948.13 $

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

6,303,033.37

-2-

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

$

30,622.64

$ 1,169,220.27

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Onl~

JUNE 30, 2002

JUNE 30, 2001

$ 4,013,817.44 $ 10,242,117.31

18,207,807.72

3,617,854.75

2,290,993.05

2,167,771.09

$ 1,167,705.50

57,871.32 26,559.69
1,167,705.50

25,292.37 35,413.63
964,674.37

5,257,294.50 590,000.00

5,257,294.50 590,000.00

10,645,325.63 1,150,000.00

$ 1,169,220.27 $

30,622.64 $ 7,015,000.00 $ 31,612,049.22 $ 28,848,449.15

$

1,514.77

$

139,354.89 $

65,166.16

107,965.49

1,143,296.96

496,386.44

413,878.54

97,183.20

73,914.48

94,185.30

5,000.00

17,532.60

60.01

2,000.00

$

30,622.64

30,622.64

29,210.61

$

590,000.00

590,000.00

1,150,000.00

6,425,000.00

6,425,000.00

11,610,000.00

$

1,514.77 $

30,622.64 $ 7,015,000.00 $ 7,868,303.95 $ 14,622,453.37

$ 1,167,705.50

0.00 $

0.00

$ 1,167,705.50 $

0.00

$

263,890.21 $

155,937.85

1,167,705.50

286,630.57 964,674.37

57,871.32 26,559.69 1,279,105.57 3,040,158.76 54,964.09

25,292.37 35,413.63 3,491,956.86 76,102.82

17,697,552.28

9,345,925.16

$ 23,743,745.27 $ 14,225,995.78

$ 1, 169,220.27 $

30,622.64 $ 7,015,000.00 $ 31,612,049.22 $ 28,848,449.15

-3-

CAMDEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002

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 Enterprise Operations 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

$ 42,331,266.21 $ 8,695,345.19 11,372,082.54 1,081,222.60
$ 63,479,916.54 $

1,224,470.00 4,659,210.82
1,218,702.90
7,102,383.72

$ 34,794,438.36 $
2,824,866.77 1,554,903.54 1,313,755.89
499,701.55 3,910,047.13
525,914.49 3,712,889.82 2,390,465.77
404,851.19 69,177.20 16,902.20
473,182.67 3,600.00

2,555,486.88
548,819.55 555,409.62
28,618.43 4,542.98
19,896.15 70,447.70
10,133.37 3,043,885.29
8,534.22

$ 52,494,696.58 $ $ 10,985,219.96 $

6,845,774.19 256,609.53

$ -3,386,224.00 $ -3,386,224.00

$ 7,598,995.96 $ 7,933,493.18

256,609.53 539,097.20

32,578.95 -8,853.94

FUND BALANCE JUNE 30

$ 15,532,489.14 $==8=19..,4.=3=1-=74=

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, 2002

JUNE 30, 2001

$

179,640.40

$ 43,735,376.61 $ 44,046,873.91

13,354,556.01

7,325,843.63

$ 5,874,219.01

17,246,301.55

15,986,925.82

66,555.82

19,467.12

2,385,948.44

2,836,779.37

$

246,196.22 $ 5,893,686.13 $ 76,722,182.61 $ 70,196,422.73

$ 1,579,532.36 560,000.00 $
57,500.00
$ 2,197,032.36 $ $ -1,950,836.14 $

$ 37,349,925.24 $ 34,959,341.50

3,373,686.32 2,110,313.16 1,313,755.89
528,319.98 3,914,590.11
525,914.49 3,732,785.97 2,460,913.47
404,851.19 79,310.57
3,060,787.49 8,534.22
473,182.67 1,583,132.36

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

5,185,000.00 505,655.00

5,745,000.00 563,155.00

5,504,263.82 802,277.36

5,690,655.00 $ 67,228,158.13 $ 68,746,236.89

203,031.13 $ 9,494,024.48 $ 1,450,185.84

$ 3,386,224.00 $ 3,386,224.00

$ 3,386,224.00 $
-3,386,224.00

$

0.00 $

342,646.06 -342,646.06
0.00

$ 1,435,387.86 $
4,788,731.03

203,031.13 $ 9,494,024.48 $ 1,450,185.84

964,674.37

14,225,995.78

12,791,594.74

32,578.95 -8,853.94

-13,725.93 -2,058.87

$ 6,224,118.89 $ 1,167,705.50 $ 23,743,745.27 $ 14,225,995.78

-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. 2002

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 42,330,290.00 $ 42,331,266.21

2,185,740.80

8,695,345.19

10,035,704.00

11,372,082.54

234,325.00

1,081,222.60

$ 54,786,059.80 $ 63,479,916.54

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 Enterprise Operations Community Services Operations
Capital Outlay

$ 35,436,611.00 $ 34,794,438.36

2,813,129.52 1,198,083.28 1,310,555.00
492,851.00 4,110,848.00
656,161.00 4,306,854.00 2,791,233.00
363,526.00 46,050.00

2,824,866.77 1,554,903.54 1,313,755.89
499,701.55 3,910,047.13
525,914.49 3,712,889.82 2,390,465.77
404,851.19 69,177.20 16,902.20

473,182.67 3,600.00

Total Expenditures Excess of Revenues over (under) Expenditures

$ 53,525,901.80 $ 52,494,696.58 $ 1,260,158.00 $ 10,985,219.96

OTHER FINANCING USES

Other Uses

-467,988.00

-3,386,224.00

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

$ 792,170.00 $ 7,598,995.96

FUND BALANCE JULY 1 2001

7,625,662.23

7,933,493.18

Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30 2002

$ 8,417,832.23 $ 15,532,489.14

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 882,804.40 $ 1,224,470.00

3,919,720.00

4,659,210.82

1,696,070.00

1,218,702.90

$ 6,498,594.40 $ 7,102,383.72

$ 2,018,983.76 $ 2,555,486.88

205,654.00 406,701.52

548,819.55 555,409.62

30,606.35 4,480.77

28,618.43 4,542.98

31,820.00 65,611.00

19,896.15 70,447.70

28,465.00 3,306,865.00
399,407.00

10,133.37 3,043,885.29
8,534.22

$ 6,498,594.40 $ 6,845,774.19

$

0.00 $ 256,609.53

$

0.00 $

1,482,026.04

256,609.53 539,097.20

32,578.95 -8,853.94

$ 1,482,026.04 $ 819,431.74

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

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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 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 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 of purchase. 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 of the 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.

-7-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: 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 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 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
-8-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be 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 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 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. 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, 2002, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. 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.
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
-9-

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(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.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from 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-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 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 and 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 of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
- 10 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 2001 tax digest year (calendar year) on November 7, 2001 (levy date). Taxes were due on January 22, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. 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, 2002 for maintenance and operations amounted to $11,069,508.12.

The tax millage rate levied for the 2001 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

14.95 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $5,874,219.01 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

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

- 11 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations 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 amount 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.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results 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 ofthis 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 ofinsurance, 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. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe

- 12 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS
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 any one 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
(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 At June 30, 2002, the bank balances were $7,427,535.23. 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 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.
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.)
- 13 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS

The School District's deposits are classified by risk category at June 30, 2002, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

7,327,535.23

3

0.00

Total

$ 7,427,535.23

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $18,207,807.72 which is materially the same as fair value. The investments are classified as follows:

Type of Investment

Carrying Amount

U. S. Government Local Government
Investment Pools

$ 3,185,140.36 15,022,667.36

Total Investments

$18,207,807.72

The carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair

- 14 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS
value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years.
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 of assets; errors or omissions; job related illness or injuries to employees; acts of God 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 acts of God. 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 of that loss can be reasonably estimated.

- 15 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

2001 2002

$

0.00 $ 31,795.28 $ 21,952.28 $

9,843.00

$

9,843.00 $

3,880.00 $ 11,163.00 $

2,560.00

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 $350,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Superintendent High School Principal Each Middle School Principal Each Elementary School Principal Alternative School Principal Each Assistant Principal Vocational Supervisor Athletic Director

$ 20,000.00 $ 100,000.00 $ 50,000.00 $ 20,000.00 $ 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 has 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.

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

- 16 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

Purpose

Interest Rates

Amount

General Government - Series 1997

4.00% - 4.75% $ 6,425,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2001

$ 1,150,000.00 $11,610,000.00 $12,760,000.00

Deductions Debt Retired

560,000.00 5,185,000.00 5,745,000.00

Balance June 30, 2002

$ 590,000.00 $ 6,425,000.00 $ 7,015,000.00

At June 30, 2002, 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

2003

$ 619,500.00 $ 6,707,700.00 $ 7,327,200.00

Deduct: Imputed Interest

29,500.00

Net Present Value of Future Minimum Lease Payments $ 590,000.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $469,235.02 for health insurance and retirement contributions paid on the School District's behalf by 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 $348,226.95

- 17 -

CAMDEN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 6: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $22,447.07

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 $98,561.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002.

Project

Unearned Executed Contracts

Bus Maintenance Facility

$ 5,000.00

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 of tax-exempt debt to make payments to the United States Treasury oflnvestment 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$263,890.21 at June 30, 2002, 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 November 25, 2002, at which time payment ofthe 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 EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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 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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 3,429,351.25 $ 3,882,049.41 $3,865,284.12

- 19 -

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

864,324.50 $

94,460.07

25,235.81

57,871.32 26,559.69

Total Assets

$

973,991.32 $ ===94=,4=6=0.=07=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft 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

$

15,988.74 $

138,570.84

$

154,559.58 $

14,572.72 79,827.34
60.01
94,460.07

$

57,871.32

26,559.69

735,000.73 $

0.00

$

819,431.74 $

0.00

Total Liabilities and Fund Equity

$

973,991.32 $===94..,,4=6=0.=07=

See notes to the general-purpose financial statements.

- 20-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

958,784.57 $ 1,041,404.04

$

516,938.61

542,174.42

863,643.23

57,871.32 26,559.69

25,292.37 35,413.63

$

516,938.61 $ 1,585,390.00 $ 1,965,753.27

$

238,441.87 $

238,441.87

41,108.48

71,669.94 $

913,594.33

237,388.26

455,786.44

413,878.54

97,183.20

60.01

2,000.00

$

516,938.61 $

765,958.26 $ 1,426,656.07

$
$ _ _ _ _0'-'-.0"-"o;.... $ _ _ _----'o'-'-.o"-"o;.... $

57,871.32 $ 26,559.69
735,000.13
819,431.74 $

25,292.37 35,413.63
478,391.20
539,091.20

$

516,938.61 $ 1,585,390.00 $ 1,965,753.27

- 21 -

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002

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 Enterprise Operations
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

228,836.00 $

1,865,042.77

1,212,164.80

$ 3,306,043.57 $

995,634.00 995,634.00

$

598,833.09

338,257.03 36,125.03

$ 3,040,899.82 8,534.22

19,896.15 2,522.70

$ 3,049,434.04 $

$

256,609.53 $

539,097.20

995,634.00 0.00 0.00

32,578.95 -8,853.94

FUND BALANCE JUNE 30

$

819,431.74 $=====,;;,0-;;;;00;;,.

See notes to the general-purpose financial statements.

- 22 -

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,224,470.00 $ 3,540,220.52

$ 2,794,168.05

4,659,210.82

3,727,671.99

6,538.10

1,218,702.90

1,267,215.77

$ 2,800,706.15 $ 7,102,383.72 $ 8,535,108.28

$ 1,956,653.79 $ 2,555,486.88 $ 2,165,682.38

210,562.52 519,284.59
28,618.43 4,542.98
70,447.70 10,133.37
462.77

548,819.55 555,409.62
28,618.43 4,542.98
19,896.15 70,447.70 10,133.37 3,043,885.29
8,534.22

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

$ 2,800,706.15 $ 6,845,774.19 $ 8,335,509.64

$

0.00 $

256,609.53 $

199,598.64

0.00

539,097.20

355,283.36

32,578.95 -8,853.94

-13,725.93 -2,058.87

$

0.00 $

819,431.74 $==5=3=9=,0=97==20=

- 23 -

CAMDEN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
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

$ 1,664,892.23 $ 1,542,995.78

22.51

$ 1,664,914.74 $ 1,542,995.78

$

73,914.48

5,000.00

$

78,914.48

$

263,890.21

1,279,105.57

$ 1,586,000.26

0.00

$ 1,586,000.26 $ 1,542,995.78

$ 1,664,914.74 $ ==1=,5=4=2=,9=9=5.=78=

See notes to the general-purpose financial statements.

-24-

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX
$
$ 2,015,897.58
1,024,261.18

LOTTERY PROJECT

TOTALS

JUNE 30, 2002

JUNE 30, 2001

54,964.09 $ 3,262,852.10 $ 1,335,750.07

2,015,920.09

2,588,014.22

1,024,261.18

976,684.64

$ 3,040,158.76 $

54,964.09 $ 6,303,033.37 $ 4,900,448.93

$

73,914.48 $

94,185.30

5,000.00

17,532.60

$

78,914.48 $ _ _____;1....;..11-'-'-7, '--'1..;...7";..;;..90"-

$ 3,040,158.76 $
0.00
$ 3,040,158.76 $

$
54,964.09 0.00
54,964.09 $

263,890.21 $ 1,279,105.57 3,040,158.76
54,964.09
1,586,000.26
6,224,118.89 $

286,630.57 3,491,956.86
76,102.82 934,040.78 4,788,731.03

$ 3,040,158.76 $

54,964.09 $ 6,303,033.37 $ 4,900,448.93

-25-

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Taxes 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

$

40,000.00

17,663.29 $

7.12

$

57,663.29 $

7.12

$

457,323.52

1,031,152.71 $

13,461.68

560,000.00 57,500.00

$ 2,119,437.91 $

$ -2,061,774.62 $

77,594.45
77,594.45 -77,587.33

$ 2,713,734.10 $ 1,333,952.54

$ 2,713,734.10 $ 1,333,952.54

$

651,959.48 $ 1,256,365.21

934,040.78

286,630.57

$ 1,586,000.26 $ 1,542,995.78

See notes to the general-purpose financial statements. - 26-

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

$ _ _ _4_8~,8_85_.4_1_

$

48,885.41 $

139,640.40 $ 139,640.40 $

179,640.40 $ 66,555.82

946, 139.91 3,802,441.88
292,493.30

246,196.22 $ 5,041,075.09

$

0.00 $

0.00 $

457,323.52 $

41,024.50

1,108,747.16

4, 187,840.62

13,461.68

381,342.19

560,000.00 57,500.00

535,000.00 83,715.00

$

0.00 $

0.00 $ 2,197,032.36 $ 5,228,922.31

$

48,885.41 $

139,640.40 $ -1,950,836.14 $

-187,847.22

$ 4,047,686.64 $ 1,554,019.72

$

-500,683.51 $

-160,779.13

-661,462.64

-1,211,373.66

$

-500,683.51 $

-160,779.13 $ 3,386,224.00 $

342,646.06

$

-451,798.10 $

3,491,956.86

-21,138.73 $ 1,435,387.86 $

154,798.84

76,102.82

4,788,731.03

4,633,932.19

$ 3,040,158.76 $

54,964.09 $ 6,224,118.89 $ 4,788,731.03

-27 -

CAMDEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 2002

EXHIBIT"!"

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, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$

6,119.59 $

9,443.85 $

8,183.78 $ ======7=,3=79=.6=6=

$

6,119.59 $

9,443.85 $

8,183.78 $ ======7=,3=79=.6=6=

$ 23,091.02 $

151.96 $

0.00 $ ===23;:,;,2;;,,;4=2.~98~

$ 23,091.02 $

151.96 $

0.00 $ ===2~3,=24=2=.9=8=

$ 29,210.61 $

9,595.81 $

8,183.78 $ ===3=0,=62=2=.6=4=

$ 29,210.61 $

9,595.81 $

8,183.78 $ ==a,,;;3~0=,6~22;;,;,.6~4=

See notes to the general-purpose financial statements.

- 28 -

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

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 National School Snack 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
Total Special Education Cluster
Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovation Program Class Size Reduction Educate America Act Goals2000 Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education
Defense, U. S. Department of Direct Department of the Navy R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555 10.555

N/A

$ 450,375.50

(2)

N/A

1,197,659.68 $

2,834,162.91 (3)

N/A

1 736.46

(2)

$ 1,649,771.64 $

2,834,162.91

10.550 10.558

N/A

215,271.13

215,271.13

N/A

14,179.86

14,179.86

$ 1,879,222.63 $

3,063,613.90

84.027 84.027 84.173
. 84.041
84.332
. 84.010
84.281 84.298 84.340 84.276 84.186
84.048

N/A

$

18,729.25 $

N/A

937,808.00

N/A

95,586.53

18,729.25 937,808.00
95,586.53

$ 1,052,123.78 $

1,052,123.78

8,627,416.51

N/A

153,000.00

(4) 153,000.00

N/A

1,204,343.40

1,204,343.40

N/A

44,336.09

44,336.09

N/A

45,093.28

45,093.28

N/A

194,630.00

194,630.00

N/A

7,583.69

7,583.69

N/A

6,538.10 (3)

N/A

93,057.81

93,057.81

$ 11,421,584.56 $

2,800,706.15

$

53,748.82

(4)

Total Federal Financial Assistance NIA= Not Available

-29-

$ 13,354,556.01 $

5,864,320.05

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

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 School District during the current fiscal year.
(2) Expenditures for the School Breakfast Program and National School Snack Program were not maintained separately and are included in the 2002 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.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The School District did not provide Federal Assistance to any Subrecipient.
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.

-30-

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2002

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS 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 Upper Elementary Grades Early Intervention (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 Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) 20 Days Additional Instruction Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Vocational Construction Related Equipment Other State Programs Apprenticeship Program Environmental Science Program Health Insurance High Schools that Work Mentor Teachers National Teacher Certification Post Secondary Options Preschool Handicapped Program Schools of Excellence Statewide After School Program 4-8 Statewide Reading Program K-3 Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital OuUay

$ 2.429,375.00 303,930.00
5,956,826.00 713,901.00
2,884,672.00
568,067.00 5,475,692.00 4,137,358.00 1,468,778.00
217,789.00 586,701.00 2,220,049.00 206,301.00
38,052.00 585,272.00 164,979.00 405,844.00
45,930.00 280,495.00 908,842.00 165,135.00 5,377,362.00
1,066,197.00 310,156.00 193,120.00 38,518.00 58,401.00
4,465,986.00 $
14,705.30 174,476.85
35,000.00 1,500.00
348,226.95 4,000.00 2,601.00
10,922.00 3,465.00
118,992.83 2,000.00
84,672.20 115,968.01
22,447.07

$ 2.429,375.00 303,930.00
5,956,826.00 713,901.00
2,884,672.00
568,067.00 5,475,692.00 4, 137,358.00 1,468,778.00
217,789.00 586,701.00 2,220,049.00 206,301.00
38,052.00 585,272.00 164,979.00 405,844.00
45,930.00 280,495.00 908,842.00 165,135.00 5,377,362.00

228,836.00

14,573.15 328,404.69
$

139,640.40

1,066,197.00 310,156.00 193,120.00 38,518.00 58,401.00
4,465,986.00 228,836.00 14,705.30 174,476.85
35,000.00 1,500.00
348,226.95 4,000.00 2,601.00
10,922.00 3,465.00
118,992.83 2,000.00
84,672.20 115,968.01
22,447.07
14,573.15 328,404.69 139,640.40

Georgia Council for the Arts Challenge Grant

20,000.00

20,000.00

Office of School Readiness Pre-Kindergarten Program

652,656.16

652,656.16

- 31 -

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Office of Treasury and Fiscal Services Public School Employees Retirement
OTHER Community Affairs, Georgia Department of Local Assistance Grant

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

98,561.00

$

98,561.00

- - - - - $ 40,000.00

40,000.00

$ 42,331,266.21 $ 1,224,470.00 $ 179,640.40 $ 43,735,376.61

See notes to the general-purpose financial statements.

- 32-

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2002

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, St. Mary's Middle School, St. 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 St. Mary's Middle School and Camden Middle School; classroom 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 (3)

PROJECT STATUS

$ 311000,000.00 $ 32,446,390.00 $ 1,200,749.45 $ 30,525,492.72 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 project 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.

- 33 -

CAMDEN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

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

Upper Elementary Grades-Early Intervention (4-5)

Program

Middle Grades (6-8) 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 Ill

Category IV

CategoryV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

2,665,142.00 $ 333,426.00
6,534,930.00 783,185.00
3,162,703.00

2,837,001.06 $ 367,091.29
5,768,982.74 672,235.25
3,579,516.02

89,389.29 $ 3,235.21
223,209.09 1,474.43
93,595.22

2,926,390.35 370,326.50
5,992,191.83 673,709.68
3,673, 111.24

625,120.00 6,007,102.00 4,538,884.00 1,611,321.00 3,586,135.00
642,072.00 180,990.00 445,231.00
50,388.00

372,188.75 127.94
5,797,513.62 4,698,451.58 1,440,296.36
250,883.42 625,392.24 2,085,547.06 159,503.93
447.67 613,276.36 224,367.51 345,687.21
62,481.49

138.05 150.09 224,486.00 282,328.34 148,164.74
14,893.40 9,475.97
46,184.41 1,177.05 252.26 7,007.71
11,436.55 60,501.71
767.71

372,326.80 278.03
6,021,999.62 4,980,779.92 1,588,461.10
265,776.82 634,868.21 2,131,731.47 160,680.98
699.93 620,284.07 235,804.06 406,188.92
63,249.20

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

31,166,629.00 $ 29,900,991.50 $ 1,217,867.23 $ 31,118,858.73

Media Center Program Staff and Professional Development

997,043.00 181,164.00

1,106,485.18 91,490.09

194,233.70 168,302.31

1,300,718.88 259,792.40

TOTAL QBE FORMULA FUNDS

$

32,344,836.00 $ 31,098,966.77 $ 1,580,403.24 $ 32,679,370.01

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.

- 34-

CAMDEN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

SITE
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 School Camden County High School Saint Mary's Middle School Mary Lee Clark Elementary School Saint 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 QBE PROGRAM COSTS

$

1,463,693.00 $

1,544,961.52

4,071,633.00

4,083,888.05

1,852,375.00

1,905,344.38

2, 133,280.00

2,066,703.89

1,396,781.00

1,443,687.43

1,849,990.00

1,811,445.46

1,820,331.00

1,697,369.26

1,859,869.00

1,818,078.71

7,626,720.00

7,846,702.75

3,059,103.00

3,061,388.71

1,994,968.00

1,824,318.07

1,592,655.00

1,630,363.52

67.91

384,539.07

445,231.00

$

31,166,629.00 $ 31,118,858.73

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400
March 11, 2004

Honorable Sonny Perdue, 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, 2002, and have issued our report thereon dated March 11, 2004. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with 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.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2002, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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.
2002YB-41

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 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-6201-02-01.
A material weakness is a condition in which the design or operation of one or more ofthe 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, we consider item FS-6201-02-01 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,

RWH:as 2002YB-41

State Auditor

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 11, 2004

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Camden County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-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 (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Camden County Board ofEducation's major Federal programs are 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 express an opinion on Camden County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform 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 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 ofEducation's compliance with those requirements.
2002SA-10

In our opinion, the Camden County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002.
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 0MB Circular A-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 of performing 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,
1;<H. ' k

RWH:as 2002SA-10

State Auditor

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, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6201-00-02 FS-6201-01-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

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

Due to current staffing limitations and budgetary considerations prohibiting the hiring of administrative staff, the School District has decided not to pursue the recording ofgeneral 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, 2002
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 a scope limitation and 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 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) of 0MB Circular A-133 The Camden County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.041 Impact Aid
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 as defined by Section .530 of 0MB Circular A-133.
- 1-

CAMDEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II 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-6201-02-01 The Camden County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements 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. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-