Columbia County Board of Education, Evans, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008

COLUMBIA COUNTY BOARD OF EDUCATION EVANS# GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30# 2008
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

COLUMBIA COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

1

B

STATEMENT OF ACTIVITIES

2

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

4

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

5

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

6

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

7

G

STATEMENT OF NET ASSETS

PROPRIETARY FUNDS

8

H

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

PROPRIETARY FUNDS

9

I

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

10

J

STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

11

K

NOTES TO THE BASIC FINANCIAL STATEMENTS

13

COLUMBIA COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

31

SUPPLEMENTARY INFORMATION

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

32

3 SCHEDULE OF STATE REVENUE

33

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

34

5 ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

BY PROGRAM

35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS 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 CIRCULAR A-133

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

COLUMBIA COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -
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
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
February 2, 2009

Honorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Columbia County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through K) ofthe Columbia County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Columbia County Board ofEducation's management. Our responsibility is to express opinions on these 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Columbia County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions.

2008ARL-11

In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information ofthe Columbia County Board of Education, as of June 30, 2008, and the respective changes in financial position and cash flows thereof 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 February 2, 2009, on our consideration of the Columbia County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope ofour testing ofinternal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
Management's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through x and page 31 respectively, are not a required part ofthe basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Columbia County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 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 ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
-~~~n~~:\4-=-s.. State Auditor
RWH:gp 2008ARL-11

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008
The discussion and analysis of Columbia County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2008. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for 2007 - 2008 are as follows:
The Columbia County voters passed the third one percent sales tax for educational purposes for another five years (July, 2007 - June, 2012) along with approving the issuance of$30.0 million in short-term general obligation bonds on March 15, 2005.
The School District just completed a middle school that opened the fall of 2008. A high school is now in construction that will open in the fall of 2009.
The School District recently received news that the state would be cutting approximately $2.1 million from the state QBE funds for 2008 - 2009 school year due to short falls in projections for sales tax revenue. Currently, the School District has adequate reserves to cover this short fall in revenue.
The School District continues to grow with an average increase of 622 students per year over the last five years. Therefore, the School District continues to hire additional teachers and support staff to accommodate the growth.
Net assets increased $27.0 million, which represents a 15% increase from 2007. The total increase was due to governmental activities since the Board has no business-type activities.
General revenues accounted for $93.0 million in revenue or 41 % of all revenues. Program specific revenues in the form of charges for services, grants, and contributions accounted for $131.3 million or 59% of total revenues of $224.3 million.
The Board had $197.5 million in expenses related to governmental activities; only $131.3 million of these expenses were offset by program specific charges, grants, or contributions. General revenue (primarily property and sales taxes) of $93.0 million was adequate to provide for these programs.
Among major funds, the general fund had $194.1 million in revenues and $190.0 million in expenditures. The general fund balance increased from $28.0 million to $32.2 million. The Board designated some of general fund balance for future capital projects.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand Columbia County School District as a financial whole, an entire operating entity.
Table 1 summarizes the major features of the School District's financial statements, including the portion of the School District's activities they cover and the types of information they contain.

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Table 1 Major Features of the District-wide and Fund Financial Statements

Figure I

Ma.ior Features of the District-wide and Fund Financial Statements

District-wide

Fund Financial Statements

Statements

Government Funds Proprietary Funds

Fiduciary Funds

Scope

Entire School District The activities ofthe Activities the School Instances in which

(except fiduciary funds) School District that District operates

the School District

are not proprietary or similar to private

administers

fiduciary, such as

businesses: food

resources on behalf

special education

services and adult

of someone else,

and building

education

such as scholarship

maintenance

programs and

student activities

monies

Required

Statement of net

Balance sheet

Statement of net Statement of

financial

assets

assets

fiduciary net assets

statements

Statement of

Statement of activities revenues,

Statement ofcash Statement of

expenditures, and

flows

changes in fiduciary

changes in fund

net assets

balances

Accounting Basis Accrual accounting and Modified accrual

Accrual accounting Accrual accounting

and measurement economic resources

accounting and

and economic

and economic

focus

focus

current financial

resources focus

resources focus

focus

Type of

All assets and liabilities, Generally assets

All assets and

All assets and

asset/liability

both financial and

expected to be used liabilities, both

liabilities, both

information

capital, short-term and up and liabilities that financial and capital, short-term and long-

Jong-term

come due during the and short-term and term; funds do not

year or soon

long-term

currently contain

thereafter; no capital

capital assets,

assets or Jong-term

although they can

liabilities included

Type of

All revenues and

Revenues for which All revenues and

All additions and

inflow/outflow

expenses during year,

cash is received

expenses during the deductions during

information

regardless of when cash during or soon after year, regardless of the year, regardless

is received or paid

the end ofthe year; when cash is

of when cash is

expenditures when received or paid

received or paid

goods or services

have been received

and the related

liability is due and

payable

DISTRICT-WIDE STATEMENTS

The Statement of Net Assets and Statement of Activities provide information about the School District as a whole using accounting methods similar to industry. The increases and decreases in the School District's net assets are an indicator of whether the School District's financial position is improving or deteriorating. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, Stat~ and Federal funding, and the condition of buildings and equipment.

11

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008
The Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities.
Fund Financial Statements
Fund financial reports provide detailed information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, Federal and state grants, building programs, debt payments, and worker's compensation claims.
Governmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and balances left at year-end available for spending in the future periods. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is reconciled in the financial statements. The School District's major governmental funds are the general fund, capital projects fund, and debt service fund.
Proprietary Funds: Services for which the School District charges a fee are generally reported in proprietary funds. Proprietary funds are reported in the same way as the District-wide statements. The School District's enterprise funds (one type of proprietary fund) are the same as its business-type activities but provide more detail and additional information, such as cash flows. The School District uses internal service funds (the other kind of proprietary fund) to report activities that provide supplies and services for other programs and activities. The School District's only internal fund is the worker's compensation fund.
Fiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as the scholarship fund and some of the student activity funds. The student activity funds are local school accounts the principal uses to collect funds for fieldtrips, school fundraisers, athletic events, and school clubs. The school clubs and fieldtrips are considered to be agency funds. The School District excludes these activities from the District-wide statements because it cannot use these assets to finance its operations.
THE SCHOOL DISTRICT AS A WHOLE
The perspective of the statement of net assets is of the School District as a whole. Table 2 provides a summary of the School District's net assets for 2007 compared to 2008.
111

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Table 2 Net Assets

Governmental Activities

Fiscal

Fiscal

Year 2008

Year 2007

Assets Current and Other Assets Capital Assets, Net

$ 56,869,530 $ 62,085,931

200,514,281

173,315,310

Total Assets

$ 257,383,811 $ 235,401,241

Liabilities Current and Other Liabilities Long-Term Liabilities

$ 18,293,690 $ 16,238,335

32,273,794

39,126,874

Total Liabilities

$ 50,567,484 $ 55,365,209

Net Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted

$ 170,972,639 7,325,137
28,518,551

$ 136,888,666 18,971,735 24,175,631

Total Net Assets

$ 206,816.327 $ 180,036,032

Total assets of governmental activities increased by $21,982,570 as cash and cash equivalents decreased by $986,528, investments decreased by $5,821,298, receivables increased by $1,646,709, and capital assets increased by $27,198,971. Unrestricted net assets, the part of net assets that can be used to finance day-to-day activities without constraints established by grants or legal requirements, of the School District increased by $4,342,920.

Table 3 shows the changes in net assets for fiscal year 2007 compared to 2008.

iv

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Table 3 Change in Net Assets

Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions

Governmental Activities

Fiscal

Fiscal

Year 2008

Year 2007

% Change

$ 9,205,617 $ 8,819,984

109,298,928 102,547,330

12,772,749

6,321,425

4.37% 6.58% 102.05%

Total Program Revenues

$ 131,277,294 $ 117,688,739 11.55%

General Revenues:

Taxes

Property Taxes

$ 61,496,754 $ 55,297,183

Sales Taxes

19,466,186

19,387,632

Grants and Contributions not Restricted

to Specific Programs

8,206,933

7,852,247

Investment Earnings

1,921,923

2,792,865

Miscellaneous

1,860,384

1,668,878

Special Item

Gain on Sale of Property

47 999

2,081,740

11.21% 0.41%
4.52% -31.18% 11.48%
97.69%

Total General Revenues and Special Item $ 93,000,179 $ 89,080,545 4.40%

Total Revenues

$ 224,277,473 $ 206,769,284 8.47%

Program Expenses 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 Operations ofNon-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt

$ 133,797,424
3,752,087 4,196,476 4,072,686 1,179,389 12,611,270 1,252,771 12,890,679 8,310,647
906,103 55,774
3,945,204
8,822,823 1,703,845

$ 121,213,301
3,305,777 3,985,889 3,857,794 1,316,029 11,204,665 1,213,545 12,385,186 7,461,322
920,703 46,268
3,503,453 5,027
7,408,677 1,954,125

10.38%
13.50% 5.28% 5.57% -10.38% 12.55% 3.23% 4.08% 11.38% -1.59% 20.55%
12.61% -100.00%
19.09% -12.81%

Total Expenses

$ 197,497.178 $ 179,781,761 9.85%

Increase in Net Assets

$ 26,780.295 $ 26,987.523
V

-0.77%

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008

GOVERNMENTAL ACTIVITIES

Instruction comprises 68% of governmental program expenses. Support service expenses make up 25% of the expenses. Interest expense was 1%. Interest expense was attributable to the outstanding bonds for capital projects.

The State's QBE funding does not provide an adequate level of funding to provide basic education services and to adequately maintain facilities. The School District levies a millage rate of 17.09 to provide the additional local funding along with a 1% (SPLOST) sales tax.

The Statement of Activities shows the cost of program services and the changes for services and grants offsetting those services. Table 4 shows, for governmental activities, the total cost of services and the net cost of services. It identifies the cost of these services supported by tax revenue and unrestricted State entitlements.

Table4 Governmental Activities

Total Cost of Services

Fiscal

Fiscal

Year 2008 Year 2007

Net Cost of Services

Fiscal

Fiscal

Year 2008 Year 2007

Instruction

$133,797,424 $121,213,301 $ 40,726,471 $ 39,549,686

Support Services

Pupil Services

3,752,087 3,305,777 2,444,836 2,246,824

Improvement of Instructional Services

4,196,476 3,985,889 2,554,789 2,297,980

Educational Media Services

4,072,686 3,857,794

672,261

958,558

General Administration

1,179,389 1,316,029 -1,600,311 -1,279,742

School Administration

12,611,270 11,204,665 6,657,033 5,842,998

Business Administration

1,252,771 1,213,545 1,225,346 1,192,812

Maintenance and Operation ofPlant

12,890,679 12,385,186 6,076,886 5,614,505

Student Transportation Services

8,310,647 7,461,322 5,383,094 4,303,968

Central Support Services

906,103

920,703

887,756

908,869

Other Support Services

55,774

46,268

12,659

-297

Operations ofNon-Instructional Services

Enterprise Operations

3,945,204 3,503,453 -743,575 -989,719

Community Services

5,027

5,027

Food Services

8,822,823 7,408,677

218,794 -512,572

Interest on Short-Term and Long-Term Debt 1,703,845 1,954,125 1,703,845 1,954,125

Total Expenses

$197.497.178 $179.781.761 $ 66.219.884 $ 62.093.022

Instructional expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and pupil.

Pupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process.

vi

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008
Improvement of instruction are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students.
Educational media is directing, managing, and operating educational media centers.
General administration establishes and administers policy for operating the local School District.
School administration includes principals, assistant principals, and clerical staff who administer the school operations.
Business administration includes the financial and warehouse operations of the School District.
Maintenance and operation of plant activities involve keeping the school grounds, buildings, and equipment in an effective working condition.
Student transportation includes activities involved with the conveyance of students to and from school, as well as to and from school activities, as provided by State law.
Central support includes personnel services, strategic planning, and public relations activities.
Other support services include all other support services.
Community services are student activity accounts used to collect money from students for various fundraisers for the school. The proceeds are spent on media center materials, instructional supplies, and other school needed supplies.
Food services prepares and serves breakfast, lunch, and snacks to the students of the School District.
Interest involves the transactions associated with the payment of interest related to the School District's outstanding bonds.
Although program revenues make up a majority of the revenue, the School District is still dependent upon tax revenues for governmental activities. Over 30% of instructional activities are supported through taxes and other general revenues; for all governmental activities general revenue support is 33.5%.
THE SCHOOL DISTRICT'S FUNDS
The School District's governmental funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues of $224,226,326 and expenditures of $231,891,735. The net change in fund balance for the year was significant in the general fund and the capital projects funds, which had an increase of $4,138,476 and a decrease of $11,449,743, respectively.
vii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008
The general fund operations increase was due to increase in intangible taxes collected, State QBE funds, and the school nutrition program revenues. The decrease in capital projects was due to the use of resources to complete a middle school and construction of a high school.
GENERAL FUND BUDGETING HIGHLIGHTS
The School District's budget is prepared according to Georgia law. The most significant budgeted fund is the general fund. The general fund consists of the general operations, special revenue grants, and school nutrition program.
During 2008, the Board amended its general fund budget numerous times, which resulted in increasing revenue budget by $31,572 or 0% and increasing expenditure budget by $726,354 or 0.4%. The increase in the revenue budget is due to amending the budget for the final tax digest and Federal and State grants. The original revenue and expenditure budgets only reflect the anticipated funding for Federal and State grants and are amended to reflect the final award. The School District uses site-based budgeting and the budgeting systems are designed to tightly control total site budgets but to provide flexibility for site management.
The majority of the variances between the final budget and actual revenue in 2008 are due to the student activity funds of $4.9 million that are not budgeted; increase of intangible and real taxes of$750,000; on behalf payments for health and retirement of $3.5 million not budgeted; increase in QBE accounts receivable of $900,000 not budgeted; and an increase in miscellaneous revenue of $900,000 which is reimbursement for salaries from the schools. The variances between the final budgeted expenditures and actual are due to over estimates in various areas; on behalf payments for health and retirement not budgeted; and the School District does not currently budget for the $5.1 million in student activity funds. This explains the major differences in final budget for revenue ($11.0 million increase) and expenditures ($6.2 million increase) vs. the actual amounts for general fund.
CAPITAL ASSETS
At the end of the fiscal year 2008, the School District had $200,514,281 invested in land, construction in progress, buildings, equipment, and buses.
Table 5 shows fiscal 2008 balances compared to 2007.
Vlll

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Table 5 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal

Fiscal

Year 2008

Year 2007

Land Construction in Progress Buildings and Building Improvements Equipment Land Improvements

$ 7,018,736 23,236,185 154,597,653 15,119,503 542,204

$ 7,018,737 24,706,524 126,878,969 14,106,467 604,613

Total

$ 2001514,281 $ 17313151310

Overall capital assets increased $27,198,971 from fiscal year 2007 to fiscal year 2008. Increases in capital assets (buildings and building improvements, equipment, and land improvements) were offset by depreciation expense for the year.

The increase in construction in progress/increase in buildings was due to the completion of a new middle school; current construction of a high school; and other various small projects within the School District.

Most of the equipment purchased during fiscal year 2008 was for classroom computers and network equipment for the schools and departments.

DEBT

At June 30, 2008, the School District had $31.6 million in general obligation bonds outstanding with $3.7 million due within one year.

The voters of Columbia County approved on March 18, 1997, the first one percent sales tax for educational purposes for five years (July, 1997 - June, 2002). On March 20, 2001, the voters approved the second one percent sales tax for educational purposes for another five years (July, 2002 - June, 2007). On March 15, 2005, the voters approved the third one percent sales tax for educational purposes for another five years (July, 2007 - June, 2012) along with approving $30.0 million in short-term bonds which $15.0 has been issued. The School Board no longer levies a debt millage, instead the proceeds from the sales tax is used to pay the debt. Table 6 summarizes general obligation bonds and compensated absences outstanding.

IX

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Table 6 Outstanding Debt and Compensated Absences at June 30

Governmental Activities

Fiscal

Fiscal

Year 2008

Year 2007

Compensated Absences General Obligation Bonds

$

628,794 $

596,874

31,645.000

38.530.000

Total

$ 32,273,794 $ 39,126.874

CURRENT FINANCIAL ISSUES AND CONCERNS

The Columbia County School District is financially stable. The School District millage is 17.09, which produces approximately $3.8 million per mill for 2008 - 2009. The tax digest has continued to grow at an average rate of 10.69% over the last five years. The residential community is continuing to grow increasing the tax digest at a steady rate. The Columbia County Tax Commissioner's office collects taxes for the School District and the average collection rate has been 98% over the last five years. The School District does not anticipate any significant changes in the local tax digest in the immediate future.

The School District continues to grow with an average increase of 622 students per year over the last five years. The School District plans to construct additional schools in the next several years to accommodate the growth and reduce portable classrooms at various schools. The School District plans to fund the additional capital outlays with the one percent local sales tax revenue, general obligation bonds, and State capital outlay grants.

The Quality Basic Education Act (QBE) was enacted into law by the 1985 session of the Georgia General Assembly. The Act set out the provisions for educational funding for grades kindergarten through twelve in the State of Georgia. The funding is based on student counts with the expectation that local school districts fund part of the cost with local tax monies. The School District received approximately 52% of the revenues budgeted for the General Fund from QBE. The School District received $1,851,592 less in funding for 2008. The reductions in QBE funding were due to the economic downturn in the State and the QBE funding for 2009 was reduced by $1,216,914 and is expected to be reduced by another $2.1 million in 2010. Currently, the School District has adequate reserves for 2009 to handle the reduction in QBE funding.

CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information contact Pat Sullivan, Controller at Columbia County Board of Education, 4781 Hereford Farm Road, Evans, Georgia 30809 or email at psullivan@ccboe.net.

X

COLUMBIA COUNTY BOARD OF EDUCATION

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008
Cash and Cash Equivalents Investments Accounts Receivable, Net
Taxes State Government Federal Government Other Prepaid Items Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation
Total Assets
LIABILITIES
Accounts Payable Salary and Benefits Payable Deferred Revenue Contracts Payable Retainages Payable Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted for
Bus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted
Total Net Assets
Total Liabilities and Net Assets
The notes to the basic financial statements are an integral part of this statement.
-1-

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

10,640,601

27,613,183

3,924,163 13,958,958
574,966 5,942
44,211 107,506

7,018,736 23,236,185
857,043 200,816,651
37,855,447 (69,269,781)

$

257,383,811

$

2,313,555

11,490,588

346,245

1,993,136

2,150,166

3,665,000 28,608,794

$

50,567,484

$

170,972,639

317,119 1,241,682
355,150 5,411,186 28,518,551

$

206,816,327

$

257,383,811

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008

GOVERNMENTAL ACTIVITIES
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 Operations of Non-Instructional Services Enterprise Operations Food Services Operation Interest on Short-Term and Long-Term Debt
Total Governmental Activities
General Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Special Item Gain on Sale of Property
Total General Revenues and Special Item
Change in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year

EXPENSES

CHARGES FOR SERVICES

$ 133,797,424 $
3,752,087 4,196,476 4,072,686 1,179,389 12,611,270 1,252,771 12,890,679 8,310,647
906,103 55,774
3,945,204 8,822,823 1,703,845
$ 197,497,178 $

167,427
4,664,892 4,373,298 9,205,617

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

EXHIBIT"B"

PROGRAM REVENUES

OPERATING

CAPITAL

GRANTS AND

GRANTS AND

CONTRIBUTIONS CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

$

81,942,572 $

10,960,954 $

1,307,251 1,641,687 2,777,643 2,779,700 5,456,012
27,425 6,813,793 2,610,434
18,347 43,115

622,782 498,225
317,119

23,887 3,857,062

373,669

$ 109,298,928 $

12,772,749 $

(40,726,471)
(2,444,836) (2,554,789)
(672,261) 1,600,311 (6,657,033) (1,225,346) (6,076,886) (5,383,094) (887,756)
(12,659)
743,575 (218,794) (1,703,845}
(66,219,884)

$

61,496,754

8,271,926 8,958,623 1,788,820
446,817 8,206,933 1,921,923 1,860,384

47,999

$

93,000,179

$

26,780,295

180,036,032

$

206,816,327

-3-

COLUMBIA COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2008

EXHIBIT"C"

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable, Net Taxes
State Government Federal Government Other Prepaid Items Inventories
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable Salary and Benefits Payable Deferred Revenue Contracts Payable Retainages Payable
Total Liabilities
FUND BALANCES
Reserve for: Continuation of Federal Programs Bus Replacement Debt Service Inventories Capital Projects
Unreserved Designated for Student Activities Designated for Future Capital Projects Undesignated Reported in: General Fund
Total Fund Balances
Total Liabilities and Fund Balances

GENERAL FUND

DISTRICTWIDE
CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 7,700,428 $ 2,046,252

23,067,628

4,507,324 $

937,822 13,376,130
574,966 5,942
44,211 107,506

2,986,341 582,828

$ 9,746,680

38,231

27,613,183

3,924,163 13,958,958
574,966 5,942
44,211 107,506

$ 45,814,633 $ 10,122,745 $

38,231 $ 55,975,609

$ 1,765,507 11,490,588 346,245

$ 251,338
1,993,136 2,150,166

$ 13,602,340 $ 4,394,640

$ 2,016,845 11,490,588 346,245 1,993,136 2,150,166
$ 17,996,980

$ 1,134,176 317,119 $ 316,919 $ 107,506 5,411,186
1,676,748 2,900,000
26,076,744
$ 32,212,293 $ 5,728,105 $

38,231

$ 1,134,176 317,119 355,150 107,506
5,411,186

1,676,748 2,900,000

26,076,744

38,231 $ 37,978,629

$ 45,814,633 $ 10,122,745 $

38,231 $ 55,975,609

The notes to the basic financial statements are an integral part of this statement. -4-

COLUMBIA COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30, 2008

EXHIBIT"D"

Total Fund Balances - Governmental Funds (Exhibit "C")
Amounts reported for Governmental Activities in the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Land Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation
Total Capital Assets
An Internal Service Fund is used by the School District's management to account for the worker's compensation risk financing related activities. The assets and liabilities of the Internal Service Fund are reported with governmental activities.
Long-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of:
Bonds Payable Compensated Absences
Total Long-Term Liabilities

$

37,978,629

$

7,018,736

23,236,185

857,043

200,816,651

37,855,447

(69,269,781)

200,514,281

597,211

$

(31,645,000)

(628,794)

(32,273,794)

Net Assets of Governmental Activities (Exhibit "A")

$

206,816,327

The notes to the basic financial statements are an integral part of this statement. -5-

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008

EXHIBIT"E"

REVENUES
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues

GENERAL FUND

DISTRICTWIDE
CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 61,496,754 2,235,637 $
108,095,993 9,726,987 9,205,617 1,478,167 1,893,225
$ 194,132,380 $

8,958,623 $ 12,455,630
392,533
21,806,786 $

$ 61,496,754

8,271,926

19,466,186

120,551,623

9,726,987

9,205,617

15,234

1,885,934

1,893,225

8,287,160 $ 224,226,326

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 Enterprise Operations Food Services Operation
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Transfers In Transfers Out Special Item
Proceeds From Sale of Property
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending

$ 128,673,604 $
3,750,966 4,147,650 4,068,169 1,131,529 12,579,497 1,228,332 13,188,783 7,796,695
912,858 55,612
3,980,739 8,499,322

2,074,824
462 16,879 5,738 88,681
$ 177,709
61,052 30,859,332

$ 190,013,756 $ 33,284,677 $

$

4,118,624 $ {11,477,891 l $

$ 130,748,428

4,457

3,750,966 4,148,112 4,085,048 1,137,267 12,668,178 1,232,789 13,366,492 7,796,695
912,858 55,612
3,980,739 8,560,374 30,859,332

6,885,000 1,703,845

6,885,000 1,703,845

8,593,302 $ 231,891,735

{306,142) $ {7,665,409)

$

19,852

$

(19,852)

48,000

$

19,852 $

28,148

$

4,138,476 $ (11,449,743) $

28,073,817

17,177,848

$ 32,212,293 $

5,728,105 $

$
$ (306,142) $ 344,373
38,231 $

19,852 (19,852) 48,000 48,000 (7,617,409) 45,596,038 37,978,629

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

COLUMBIA COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008

EXHIBIT"F"

Total Net Change in Fund Balances - Governmental Funds (Exhibit "E")
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital Outlay Depreciation Expense
Excess of Capital Outlay over Depreciation Expense
In the Statement of Activities, only the gain on the sale of the land and equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the land and equipment sold.
Repayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of:
Bond Principal Retirements
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of:
Increase in Compensated Absences
An Internal Service Fund is used by the School District's management to account for the worker's compensation risk financing related activities. The net revenue of the Internal Service Fund is reported with governmental activities.

$ (7,617,409)

$35,054,540 {7,822,728)

27,231,812

(32,841)

6,885,000

(31,920) 345,653

Change in Net Assets of Governmental Activities (Exhibit "B")

$26,780,295

The notes to the basic financial statements are an integral part of this statement. -7-

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2008
ASSETS
Current Assets Cash and Cash Equivalents

EXHIBIT"G"

INTERNAL SERVICE FUND

$

893,921

LIABILITIES
Current Liabilities Accounts Payable

$

296,710

NET ASSETS Unrestricted

597,211

Total Liabilities and Net Assets

$

893,921

The notes to the basic financial statements are an integral part of this statement. -8-

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2008

EXHIBIT "H"

OPERATING REVENUES

INTERNAL SERVICE FUND

Charges for Services

$

628,472

OPERATING EXPENSES

Contractual Services Insurance Claims and Expenses

$

204,315

114,493

Total Operating Expenses

$

318,808

Operating Gain

$

309,664

NONOPERATING REVENUES

Interest and Investment Revenue

35,989

Changes in Net Assets

$

345,653

Total Net Assets - Beginning

251,558

Total Net Assets- Ending

$

597,211

The notes to the basic financial statements are an integral part of this statement. -9-

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Charges for Services Cash Paid for Excess Worker's Compensation Insurance Cash Paid for Other Purchased Services Cash Paid for Worker's Compensation Claims
Net Cash Used by Operating Activities

EXHIBIT"!"

INTERNAL SERVICE FUND

$

629,380

(56,277)

(148,038)

(369,537)

$

55,528

CASH FLOWS FROM INVESTING ACTIVITIES Interest and Dividends
Net Decrease in Cash and Cash Equivalents Balances - Beginning of Year Balances - End of Year

$

35,989

$

91,517

802,404

$

893,921

RECONCILIATION OF OPERATING GAIN TO NET CASH USED BY OPERATING ACTIVITIES
Operating Gain Change in Net Assets and Liabilities
Receivables, Net Accounts and Other Payables
Net Cash (Used) By Operating Activities

$

309,664

908 (255,044)

$

55,528

The notes to the basic financial statements are an integral part of this statement. - 10 -

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008
ASSETS
Cash and Cash Equivalents

EXHIBIT"J"

AGENCY FUNDS

$

582,739

LIABILITIES Funds Held for Others

$

582,739

The notes to the basic financial statements are an integral part of this statement.
- 11 -

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COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
The Columbia County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Columbia County Board of Education.
District-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting ofinternal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental, proprietary, and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
- 13 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The School District reports the following major governmental funds:
General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund.
District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities.
Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or from ancillary activities. Enterprise fund operating revenues are related to charges for workers' compensation risk financing related activities. The primary nonoperating revenues are interest and investment revenues.
Principal operating expenses are the costs of providing goods or services and include contractual services and insurance claims and expenses.
The School District reports the following major proprietary fund:
Internal Service Fund - the fund used to account for the School District's workers' compensation risk financing related activities.
The School District reports the following fiduciary fund type:
Agency funds account for assets held by the School District as an agent for various funds, governments or individuals.
BASIS OF ACCOUNTING
The basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include
- 14 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources.
The School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
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. Official Code ofGeorgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building 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

- 15 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT"K"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks.
RECEIVABLES
Receivables consist of amounts due from property and sales taxes, 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Columbia County Board of Commissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on July 24, 2007 (levy date). Taxes were due on November 15, 2007 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax

- 16 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

digest are reported as revenue in the governmental funds for fiscal year 2008. The Columbia County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $61,482,340.

The tax millage rate levied for the 2007 tax year (calendar year) for the Columbia County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

17.09 mills

SALES TAXES

Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $17,230,549 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 On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 2008, are recorded as prepaid items.

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost

- 17 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art.

Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Improvements Computers, Televisions, Laser Disk Players,
Digital Cameras and Video Cameras Monitors, Printers, Scanners, and Band
Equipment All Other Equipment

$

1,000

NIA

$

1,000 10 to 20 years

$

1,000

50 years

All

5 to 8 years

$

100 5 to 15 years

$

1,000 5 to 15 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities.

In the District-wide and fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the Statement of Net Assets.

- 18 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NET ASSETS
The School District's net assets in the District-wide Statements are classified as follows:
Invested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.
Restricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties.
Unrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and my be used at the discretion of the Board to meet current expenses for those purposes.
Note 3: 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 of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value 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
securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance.
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 ofthe State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
- 19 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 3: DEPOSITS AND INVESTMENTS

(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 United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed 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, 2008, the bank balances were $12,030,945. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk:

Category 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent but not in the School District's name.

The School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows:

Custodial Credit Risk Category

Bank Balance

1

$

0

2

733,589

3

10,797,356

Total

$ 11,530.945

CATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2008 are presented below. All investments are presented by investment type and debt securities are presented by maturity.

- 20-

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 3: DEPOSITS AND INVESTMENTS

Investment Type

Fair Value

Other Investments Equity Securities - Domestic Common Stock

$ 103,784

Investment Pools Office of Treasury and Fiscal Services Georgia Fund 1

27,509,399

Total Investments

$ 27,613.183

The Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio and Extended Asset Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department ofAudits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html.

The Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days.

Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value ofan investment. The School District does not have a formal policy for managing interest rate risk.

Note 4: 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 2 - Inventories

- 21 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 5: CAPITAL ASSETS

The following is a summary of changes in the Capital Assets during the fiscal year:

Balances July 1, 2007

Increases

Decreases

Balances June 30, 2008

Governmental Activities Capital Assets, Not Being Depreciated:
Land Construction in Progress

$ 7,018,737

$

1 $ 7,018,736

24,706,524 $ 22.331.962 23.802.301 23.236.185

Total Capital Assets Not Being Depreciated $ 31.725.261 $ 22,331.962 $ 23,802.302 $ 30,254,921

Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements

$ 169,077,010 $ 31,739,641

34,951,518

4,785,239 $

857,043

$ 200,816,651 1,881,310 37,855,447
857,043

Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements

42,198,041 20,845,051
252,430

4,020,957 3,739,362
62,409

1,848,469

46,218,998 22,735,944
314.839

Total Capital Assets, Being Depreciated, Net $ 141,590.049 $ 28,702,152 $

32.841 $ 170.259.360

Governmental Activity Capital Assets - Net $ 173,315,3 lQ $ 51,03~,ll~ $ 23,835,143 $ 200,514,281

Current year depreciation expense by function is as follows:

Instruction Support Services
Pupil Services Improvements 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 Community Services Food Services

$ 6,239,403

$

7,892

82,873

17,697

45,014

33,370

33,127

240,600

789,966

13,634

1,509

1,265,682 11,242
306,401

$ 7,822.728

- 22 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT"K"

Note 6: RESTRICTED ASSETS

Special Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, and property tax levied specifically for retirement ofoutstanding bond principal, interest and paying agent's fees (Debt Service Funds) are restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008 were as follows:

District-wide Capital Projects

Bond

SPLOST

Proceeds

Debt Service Funds

Restricted Cash and Cash Equivalents: Capital Acquisitions
Restricted Investments: Debt Services Capital Acquisitions

$ 2,046,252
$ 316,919 $ 4,190,363 $

$ 42

38,231

Note 7: INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2008 consisted of the following:

Transfer to

Transfers From District-wide
Capital Projects

General Fund

$===19-,8-5_2

The capital projects fund prepaid for computers for the new Stalling Island Middle School which should come out of a grant in general fund for 2008 - 2009 school year.

Note 8: 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 participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the

- 23 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 8: RISK MANAGEMENT

system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage.

The School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to the General Fund to cover actual claims and to build a level ofretained earnings. A premium is charged by the Internal Service Fund to the Food and Nutrition Program to cover actual claims. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of$300,000 loss per occurrence, up to the statutory limit.

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

2007 2008

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

EndofYear Liability

$

638,431 $

228,584 $

315,261 $

551,754

$

551,754 $

114,493 $

369,537 $

296,710

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2007 2008

$

10,345 $

1 040 $

11,385 $

0

$

0 $

0 $

0 $

0

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

Position Covered

Amount

Superintendent All Employees

$

50,000

$ 200,000

- 24 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 9: LONG-TERM DEBT
COMPENSATED ABSENCES Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences.

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

Purpose

Interest Rates

Amount

General Government - Series 1994A

3.50% - 7.00%

General Government - Refunding - Series 1998 3.10% - 4.35%

General Government- Refunding- Series 2001A 3.50% - 4.00%

General Government - Refunding - Series 2003

2.60%

General Government - Series 2005

3.25% - 5.00%

$ 6,395,000 5,760,000 1,555,000 2,935,000 15,000,000

$ 31,645.000

Voters have authorized $15,000,000 in general obligation debt for capital outlay purposes which was not issued as of June 30, 2008.

The changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows:

- 25 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 9: LONG-TERM DEBT

Governmental Funds

General

Compensated Obligation

Absences (1)

Bonds

Total

Balance July 1, 2007

$ 596,874 $ 38,530,000 $ 39,126,874

Additions Annual Leave Earned

647,299

647,299

Deductions Annual Leave Utilized Debt Retired

615,379

6,885,000

615,379 6,885,000

Balance June 30, 2008

$ 628,794 $ 31,645.000 $ 32,273,794

Portion of Long-Term Debt

Due within One Year

$

0 $ 3,665,000 $ 3,665,000

(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements.

At June 30, 2008 payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation

Debt

Principal

Interest

2009 2010 2011 2012 2013

$ 3,665,000, $ 1,464,287

3,960,000

1,278,547

5,985,000

1,022,286

8,815,000

642,450

9,220,000

258.187

Total Principal and Interest

$ 31,645,000 $ 4,665,757

Note 10: ON-BEHALF PAYMENTS

The School District has recognized revenues and costs in the amount of $3,508,894 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

- 26-

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 10: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $3,459,581

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $25,801

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 $23,512

Note 11: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008 together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

07-636-016/07G-636-021 Grovetown High School

$ 582,828

$ 15,364,854

3,846,596

$ 15!3641854 $ 4A29A24

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

Note 12: SIGNIFICANT CONTINGENT LIABILITIES

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

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements.

- 27 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 13: POSTEMPLOYMENT BENEFITS

Georgia Retiree Health Benefit Fund

PLAN DESCRIPTION The School District contributes to the Georgia Retiree Health Benefit Fund ("GRHBF"), a costsharing multiple-employer defined benefit postemployment healthcare plan administered by the Department of Community Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 of the Official Code of Georgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department of Community Health at 2 Peachtree Street, Atlanta, Georgia 30303.

FUNDING POLICY The contribution requirements ofplan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage.

Participating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows:

Teachers Non-Certificated Employees

18.534% of state-based salaries $162.72 per month

The School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $16,507,615, which equaled the required contribution.

Note 14: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

- 28 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2008

EXHIBIT "K"

Note 14: RETIREMENT PLANS

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 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2008 2007 2006

100% 100% 100%

$ 9,919,328 $ 9,776,525 $ 8,338,175

-29 -

(This page left intentionally blank)

COLUMBIA COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2008

SCHEDULE "1"

REVENUES
Property Taxes Sales Tax State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenue

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

$

61,668,192 $ 61,393,317 $ 61,496,754

1,500,000

1,500,000

2,235,637

103,704,531

103,868,601

108,095,993

9,533,595

9,675,972

9,726,987

4,785,000

4,785,000

9,205,617

1,585,000

1,585,000

1,478,167

420,000

420,000

1,893,225

$ 183,196,318 $ 183,227,890 _$.___1_94_.,_13_2.._,3_80_

'
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 Enterprise Operations Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending

$ 127,956,470 $ 128,097,240 $ 128,673,604

3,912,994 4,320,001 3,723,791 1,179,379 10,896,743 1,237,929 12,932,215 7,288,470
978,255 58,129
8,573,459

4,017,266 4,326,880 3,699,324 1,199,540 10,900,212 1,237,929 12,939,144 7,745,763
989,694 57,738
8,573,459

3,750,966 4,147,650 4,068,169 1,131,529 12,579,497 1,228,332 13,188,783 7,796,695
912,858 55,612
3,980,739 8,499,322

$ 183,057,835 $ 183,784,189 $ 190,013,756

$

138,483 $ (556,299) $

4,118,624

.

19,852

$

138,483 $ (556,299) $

4,138,476

28,888,092

21,855,429

28,073,817

============== $

29,026,575 $ 21,299,130 $ 32,212,293

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts.
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 31 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2008

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food Donation (1)
Total U. S. Department of Agriculture

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555
10.550

NIA

(2)

NIA

$ _ _ ___:.7.1.:,4::28::.,;,7'-'1-'-7

$

7,428,717

NIA

595,698

$ _ _ _ _,::;8,c::c02:::4:.,,;,4;:..;1~5

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants
Total Special Education Cluster
Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States
Total U. S. Department of Education

84.027 84.173
84.041
84.196 84.365 84.367 84.186 84.298 84.010 84.048

NIA

$

NIA

$

NIA N/A N/A NIA N/A NIA N/A
$

3,173,155 g2,060
3,265,215
(3)
12,601 35,354 493,816 48,095 24,487 1,901,901 125,854
5,907,323

Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program Department of the Navy R.O.T.C. Program
Total U.S. Department of Defense
Total Federal Financial Assistance
NIA = Not Available
Notes to the Schedule of Expenditures of Federal Awards
(1) The amount shown for the Food Donation 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 ($459,510) were not maintained separately and are included in the 2008 National School Lunch Program.
(3) Funds earned on the Impact Aid program, in the amount of $218,619, do not require reporting of expenditures.

$

167,873

51,016

$ _ _ _ _-=2c.:..18::..,.,8;:;.;8:..;;..9

$ ====1;.;4~,1,;;,50~,6;;;2;;,.7

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 Columbia 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 fund financial statements.

See notes to the basic financial statements.

-32-

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program
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) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Health Insurance High School Graduation Coach Middle School Graduation Coach Middle School Remediation National Teacher Certification Preschool Handicapped Program Teachers' Retirement Virtual Schools Grant
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of Treasury and Fiscal Services Public School Employees Retirement

GENERAL FUND

GOVERNMENTAL FUND TYPES CAPITAL
PROJECTS FUND

TOTAL

$

1,677,150

$

1,677,150

6,974,347 256,469
16,808,248 674,161
8,129,261 424,463
14,384,811 14,325,499
2,752,211
586,463 470,109 4,776,952 1,405,101 583,169 1,947,095 748,053 1,167,112 203,763 2,308,043 753,242 406,601
2,050,862 4,448,620 5,670,551
1,833,116 317,119 380,420 34,654
7,988,314 474,906 134,213
-1,804,557
3,459,580 266,722 294,672 14,218 376,518 320,029 25,801 9,400

$ 23,512

12,455,630

6,974,347 256,469
16,808,248 674,161
8,129,261 424,463
14,384,811 14,325,499
2,752,211
586,463 470,109 4,776,952 1,405,101 583,169 1,947,095 748,053 1,167,112 203,763 2,308,043 753,242 406,601
2,050,862 4,448,620 5,670,551
1,833,116 317,119 380,420 34,654
7,988,314 474,906 134,213
-1,804,557
3,459,580 266,722 294,672 14,218 376,518 320,029 25,801 9,400
12,455,630
23,512

OTHER Community Affairs, Georgia Department of Local Assistance Grant

15,000

15,000

$

108,095,993 $

12,455,630 $ ===1=2.,.0,..,55=1=,6=23=

See notes to the basic financial statements.

-33-

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2008

SCHEDULE "4"

Revenues Sales Tax 2002-2007 Proceeds Sales Tax 2007-2012 Proceeds 2005 Bond Proceeds State Proceeds Local Proceeds Interest Total Revenue

BUDGET
$ 68,265,548 91,200,000 15,664,805 35,022,135 19,968,000 1,900,000
$ 232,020,488

(1)
SPLOST-2002;2007 Current Year ~ Year

(2)

SPLOST 2007-2012

BONDS

SALES TAX PROCEEDS

Current Year

Prior Year

Current Year

Prior Year

STATE AND

LOCAL FUNDING

Current Year

Prior Year

TOTAL

$ 68,265,548 $

$

329,352

997,052

$

329,352 $ 69,262,600 $

0

$

$ 17,230,549

$ 15,664,805

456,715

62454

0 $ 16,121,520 $ 17,293,003 $

0 $
0 $

12,455,631 $ 4,248,000
16,703,631 $

13,719,938 15,720,000
29,439,938

$ 68,265,548 17,230,549 15,664,805 26,175,569 19,968,000 1,845,573
$ 149,150,044

PERCENTAGE COMPLETION
100% 19% 100% 75% 100% 97%

Expenditures

Debt Payments

$ 83,006,732 $ 4,054,853 $ 39,855,349 $

Audit Fees

35,250

4,000

11,250

Capital Projects

124,935,597

274,847

11,291,144

Equipment, Buses, & Portables

20,412,194

1,609,061

5,403,023

Total Expenditures

$ 228,389,773 $ 5,942,761 $ 56,560,766 $

Proceeds for Current and Future Projects

$

3,630,715 $ (5,613,409) $ 12,701,834 $

0 $ 1,531,774 $ 4,217,072 $

14,589,627

13,555,995

0 $ 16,121,401 $ 17,773,067 $

0

$ 49,659,048

60%

15,250

43%

$ 17,507,348 $ 29,245,876

86,464,837

69%

7,012,084

34%

0 $ 17,507,348 $ 29,245,876 $ 143,151,219

0 $

119 $

(480,064) $

0 $

(803,717) $

194,062 $ 5,998,825

The voters of Columbia County approved the imposition of a 1% sales tax (SPLOST) for 2002-2007 and 2007-2012 to fund the above projects and retire debt. The amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.
(1) The School District's original cost estimate as specified in the resolution for the 2002-2007 SPLOST was (1) for the cost of acquiring, constructing, and equipping one new elementary school and one new middle school, adding and equipping new classrooms at existing high schools, acquiring land for future schools, adding to, renovating, repairing, improving, and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary property therefor, both real and personal, (2) the cost of acquiring instructional and administrative technology improvements for existing schools and acquiring school buses, the maximum cost of the projects described in clauses (1) and (2) above to be $42,067,795 and (3) the cost of paying debt due on April 1, 2003 through October 1, 2007, in the maximum amount of $27,932,205 for a total of $70,000,000. The taxpayers also approved the sale of $16,000,000 in bonds in order to advance fund the projects. The principal and interest on the $16,000,000 was paid with SPLOST proceeds which is not reflected in the $27,932,205.

(2) The School District's original cost estimate as specified in the resolution for the 2007-2012 SPLOST was (1) to acquire, construct, and equip two new elementary schools, three new middle schools, and one new high school, acquire land for future schools and instructional and administrative technology improvements for existing schools, add to, renovate, repair, improve, and equip existing school buildings and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary property therefor, both real and personal, (2) and to acquire school buses, the maximum cost of the projects described in clauses (1) and (2) above to be $95,100,000 and (3) the cost of paying debt due on April 1, 2008 through October 1, 2012, in the maximum amount of $19,900,000 for a total of $115,000,000. The taxpayers also approved the sale of $30,000,000 in bonds in order to advance fund the projects. At this time only $15,000,000 of the bonds have been sold. The principal and interest on the $15,000,000 will be paid with SPLOST proceeds which is not reflected in the $19,900,000.

See notes to the basic financial statements.

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COLUMBIA COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2008

SCHEDULE "5"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT
OF EDUCATION (1) (2)

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 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)

8,083,574 $ 8,961,550 $

288,849

199,564

19,363,779

24,583,921

790,360

666,747

9,444,173

11,777,110

495,018

472,117

16,731,432

19,566,689

16,594,980

19,602,160

3,150,970

2,569,506

9,066,774

357,595

534,453

10,315,063

237,565

214,134

2,221,130

2,184,455

802,133

369,990

1,353,123

1,068,280

234,782

262,080

282,504 $
2,141 853,373
9,698 473,137
4,538 863,333 733,371 179,579

9,244,054 201,705
25,437,294 676,445
12,250,247 476,655
20,430,022 20,335,531
2,749,085

12,402 12,544 692,858 26,699 25,107 62,889 6,090 11,687 10,472

369,997 546,997 11,007,921 264,264 239,241 2,247,344 376,080 1,079,967 272,552

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

88,621,077 $ 103,942,979 $

4,262,422 $ 108,205,401

Media Center Program Staff and Professional Development

2,672,867 475,198

3,168,704 89,518

398,670 345,166

3,567,374 434,684

TOTAL QBE FORMULA FUNDS

$==========9=1=,7=6=9,=1=42= $ 107,201,201 $

(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment.

5,006,258 $ 112,207,459

See notes to the basic financial statements.

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SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
February 2, 2009

Honorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Columbia County Board of Education
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Columbia County Board of Education as of and for the year ended June 30, 2008, which collectively comprise Columbia County Board ofEducation's basic financial statements and have issued our report thereon dated February 2, 2009. 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 of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Columbia County Board ofEducation's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Columbia County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Columbia County Board of Education's internal control over financial reporting.
A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Columbia County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
2008YB-10

accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe Columbia County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Columbia County Board of Education's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Columbia County Board of Education's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Columbia 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 grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we have reported to management of Columbia County Board of Education in a separate letter dated February 2, 2009.
This report is intended solely for the information and use ofmanagement, members ofthe Columbia County Board of Education, others within the entity, 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:gp 2008YB-10

Ru sell W. Hinton, CPA, CGFM State Auditor

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
February 2, 2009

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Columbia 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 Columbia County Board of Education with the types of compliance requirements described in the U.S. 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, 2008. Columbia 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 ofits major Federal programs is the responsibility of Columbia County Board of Education's management. Our responsibility is to express an opinion on Columbia County Board of Education's compliance based on our audit.
We conducted our audit of compliance 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 0MB Circular A133, Audits ofStates, 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 of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Columbia 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 Columbia County Board ofEducation's compliance with those requirements.
2008SA-10

In our opinion, the Columbia 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, 2008.
Internal Control Over Compliance
The management of Columbia 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 Columbia County Board of Education'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, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Columbia County Board of Education's internal control over compliance.
A control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control.
Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use ofmanagement, members ofthe Columbia 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,
~AJ-.i..rul ~~~
Russell W. Hinton, CPA, CGFM State Auditor
RWH:gp 2008SA-10

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

COLUMBIA COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

No matters were reported.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6361-06-01

Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

ACTIVITIES ALLOWED OR UNALLOWED Inadequate Internal Control Procedures U.S. Department of Education Through Georgia Department of Education Hurricane Education Recovery (CFDA 84.938) Finding Control Number: FA-6361-06-01

No longer have the grant.

AUDITOR NOTE: In a May 11, 2007 communication to the Board's Superintendent, Georgia Department ofEducation advised the Board that this finding is pending review by its Financial Review Section.

SECTION IV FINDINGS AND QUESTIONED COSTS

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2008
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Columbia County Board of Education's financial statements was unqualified.
2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Columbia County Board of Education did not disclose any significant deficiencies related to the financial statements.
3. Noncompliance Material to the Financial Statements The audit of the Columbia County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Columbia County Board of Education did not disclose any significant deficiencies in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Columbia 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 Columbia County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $431,077.
9. Low Risk Auditee The Columbia County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
No matters were reported.
- 1-

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2008 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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